OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Visalia City Council Meeting – June 3, 2024: Budget, Cannabis Tax, Logo Direction, and More

City Council — Monday, June 3, 2024
BodyVisalia, California
SessionCity Council
DateMonday, June 3, 2024
StatusFILED
Video Record
0:00 / 4:59:12

Transcript — Verbatim
0:02

Carl of the work session of the Viselia City Council.

0:04

We're gonna begin with public comments.

0:06

Citizens are now invited to comment on issues within the jurisdiction of the Visalia City Council and items listed on the closed session.

0:13

Uh the council asks that you keep your comments concise and positive, creative criticism presented with appropriate courtesy is welcome.

0:20

Each speaker will be allowed three minutes at a timer, will notify you when your time is expired.

0:24

Please begin your comments by stating and spelling your name and providing your city of residence.

0:32

Okay.

0:45

Good afternoon, council.

0:47

My name is Matthew Mangroni, M A T T H E W M I N G R O N E.

0:53

I just want to introduce myself.

0:54

I'm the new president and CEO of the Portabil Chamber, and I just wanted to say uh good luck in your process and uh thank you for uh allowing me to be here.

1:04

Thank you.

1:05

Welcome, congratulations.

1:12

Hello, council.

1:14

This is April Lancaster, resident of the City of Isaiah District 2.

1:18

Um, I had some issues that I wanted to bring to you guys about the downtown Viselians organization.

1:25

Um, unfortunately, I have tried to raise those um concerns with the downtown organization in their meetings, and unfortunately haven't gotten very far with that.

1:33

So I have some concerns about the downtown Viselians, which manages both the TCBI and the POA, which reports you're gonna be receiving this evening.

1:43

Um the DTV's annual reports lack the current bylaws, including concerning changes made in 2019 regarding board member appointments and term limits.

1:53

Despite my raising these concerns and submitting public comments, DTV requested bylaw amendments through a Google form in April of 2024 bypassing proper procedure.

2:04

My attempt to inspect DTV books, membership records, and meeting minutes as statutory member on October 4, 2023 were not honored, potentially violating the public records act and the Brown Act.

2:17

Um the DTV director, City Council member raises concerns about divided loyalties.

2:23

The DTB executive president reportedly has a security contract with the POA, creating another potential conflict.

2:29

DTB lacks a proper human resources department to address such concerns.

2:34

The proposed PLA assessment increases and prior increases that are being discussed this evening may not have followed proper notification procedures and mandated by law.

2:43

I would like to urge you to thoroughly investigate these matters and take action to ensure transparency, adherence to bylaws, and address potential conflicts of interest while the DTB and P within the DTV and POA.

2:58

This includes ensuring DTB compliance with proper bylaw procedures and record keeping, addressing potential conflicts of interest among DTV leadership, and verifying the legality of proposed POA assessment increases.

3:20

Thank you.

3:21

Um, for those downtown Vision's issues, that is a downtown Visalia issue, not a city of Visoya, they're their own board, so those issues wouldn't need to go to them.

3:31

Any more public comment.

3:35

All right, seeing none.

3:36

This started with uh item number one fiscal year 2024 slash 25 and 2526 proposed budget.

3:45

Good evening, council.

3:47

My name is Renee Nagel, and I am the finance uh and technology director for the city of Iselia.

3:52

With me tonight, I have Amy Xwarengen, who is our budget analyst, and Gina Ferguson, who is our financial analyst as well.

4:00

So tonight um we will be presenting um this is the first of two or many more meetings, um, of the fiscal year 24-25 and 25-26 proposed budget.

4:14

Tonight's proposed budget for the two years includes general fund discussions, recommended positions, and future challenges.

4:22

Council has reviewed all capital projects and measure in at previous council meetings.

4:28

Council's concerns arising from tonight's discussion will be brought back on June 17th or or sooner if needed.

4:35

The budget has been made available to the public and can be accessed on our website at Viselia.city under our department finance proposed budget the budget process is a 10-month process, or if not a little longer when you count as starting it earlier.

4:55

Um, but it consists of the public, it consists of all the departments in the city of Visalia and of course city council over the last 10 months.

5:04

So tonight is the the first meeting again of several, which hopefully for the month of June will end with an adopted budget on June 17th to be able to be effective July 1st.

5:18

Please remember that the adopted budget can be revised at any regular scheduled council meeting.

5:24

Um and throughout the year, staff will continue to continue to monitor revenue and expenditures.

5:30

As shown on the slide, we always come back with presentations and updates that will focus on 2425, 2526 twice, and then of course, again, as mentioned earlier.

5:41

Um the budget is always being revised at each council meeting as additional appropriations are needed, additional grants are applied for, and so the budget document is always a changing document.

5:58

At the start of the budget process, council was set, um council was asked to set goals and priorities, and council did set five goals and priorities.

6:07

These were quality of life, fiscal strength, invest in infrastructure and growth, organizational excellence, and economic vitality.

6:16

We are proud to say that this budget includes all five goals and priorities and have been met in both years of the proposed budget.

6:30

The proposed budget for the first year amongst all funds, which is what's included in the proposed document, um, is 295.3 million, and the second year it increases to 329.9 million as well.

6:45

This increase of 34 million is due to growth in expenditures and due to additional capital throughout the funds as well.

6:59

This next slide shows um it's a pie chart that shows how for each each year what the budget consists of, and as shown on these on this pie chart, the largest single category, and these are categories is the business type funds, which represents 40 percent.

7:16

It's 40 percent in the first year, and then it goes to 38 percent due to capital changes.

7:22

Um, the single largest fund is the general fund, which represents 32 percent and then 30 percent the second year.

7:33

The budget includes 16 new positions with seven and a half coming from the general fund, and it's a half because the other half is funded down below in the enterprise funds with wastewater.

7:45

Um, measure in is adding an additional or making changes and adding a total of five, and then the um internal service funds and enterprise funds are adding an additional 3.5, which again adds up to 16 new positions over the two years.

8:03

Since the general fund is the largest fund, we'll be going over it in more detail tonight, and then of course, we'll be going over more funds and more detail of the departments in the on June 17th.

8:14

So for the total budget for the general fund, this is a summary slide right here that shows operating revenues.

8:21

We're projecting to be 101 million and then increasing to 102 million the second year for total operating expenditures.

8:29

We're projecting 85.8 million, and then the second year increasing to 89 uh 89 million, which is a 3.7% increase, and then the total expenditures, which includes all your capital, which fluctuates each year, and then your fund transfers and then your debt payments.

Discussion Breakdown — Share of Meeting
Public Engagement██████████████████████████26%
Public Works Recognition██████████████14%
International Relations██████████10%
Budget Equity Analysis████████8%
Community Engagement███████7%
Arts And Culture███████7%
Procedural██████6%
Cannabis Regulation████4%
Public Transportation███3%
Summary of Proceedings

Visalia City Council Meeting – June 3, 2024

The Visalia City Council met on June 3, 2024, for a work session and regular meeting. The work session included presentations on the proposed two-year budget and rates and fees, with no formal votes. The regular session addressed a wide range of items including public hearings on the Marseille Landscape and Lighting Maintenance Assessment District, miscellaneous special assessments, a cannabis business tax measure, the Measure N budget, an urgency ordinance extension for massage establishments, and a directive on the city logo. Two consent calendar items were pulled for separate discussion. The meeting also featured extensive public comment on a proposed Gaza ceasefire resolution and the city logo.

Public Comments & Testimony

  • Gaza Ceasefire Resolution: Approximately 15 speakers, including residents and activists, urged the City Council to pass a resolution calling for an immediate and permanent ceasefire in Gaza. Speakers described the situation as a genocide, cited statistics of casualties and destruction, and called on the city to take a stand. Several speakers also expressed frustration that city time was used for an international issue. No council action was taken.
  • Logo Discussion: Over 20 residents spoke against the new logo, arguing it lacks character, does not represent Visalia, and was designed without sufficient local input. Many requested reverting to the prior logo or opening a new community-driven design process. Some supported keeping both logos.
  • Code Enforcement Complaints: Two residents raised concerns about alleged harassment by code enforcement officers, including retaliatory citations and improper procedures. They requested relief from assessments and citations.
  • Downtown Visalians Governance: April Lancaster expressed concerns about transparency, bylaw compliance, and conflicts of interest within the Downtown Visalians organization, which manages the PBID and TCBIA. She urged council oversight.
  • CNG Pricing: Matt Hendrick, a resident, questioned the method for setting compressed natural gas fuel prices at the city station, suggesting it should be based on actual costs rather than a competitor’s price.
  • Other comments addressed TEDx Visalia, the ECO program, bicycle safety, and support for the source (LGBTQ+ center).

Consent Calendar

All consent calendar items were approved on a single motion (5-0) except items 4 and 8, which were pulled for separate discussion. The consent calendar included:

  • Authorization to read ordinances by title only.
  • Sole source agreement for sexual assault forensic exams (not to exceed $55,000/year).
  • Fiber optic interconnect improvements contract ($1,110,181.30).
  • Shade structure contracts for Recreation Park ($241,783), Village Park ($98,703), Houk Park ($156,921), Whitendale Park ($119,705), Stonebrook Park ($139,573), and Sunset Park ($151,040).
  • Selection of Council Member Liz Wynn as Transit Representative to TCAG.
  • Service agreement with Visalia Economic Development Corporation ($60,000).
  • Cooperative agreement with Tulare County for sewer main installation ($535,000).

Discussion Items

  • FY 2024/25 & 2025/26 Proposed Budget (Work Session): Finance Director Renee Nagel presented a two-year budget of $295.3 million (Year 1) and $329.9 million (Year 2). General fund operating revenues projected at $101M and $102M, with surpluses of $5.9M and $3.6M. The budget includes 16 new positions and assumes 6% and 4% wage increases. Council members discussed recession triggers, Measure T continuation, and the importance of the 30% emergency reserve. No action was taken; the budget will return for adoption on June 17.
  • FY 2024-25 Rates and Fees (Work Session): Financial Analyst Jana Ferguson reviewed proposed fee changes, including new fees for animal services, solar app plan checks, and adjustments to park and recreation fees. Many fees were rounded for cash handling. Public comment raised questions about CNG pricing. No action; final approval scheduled June 17.
  • DTVPBID Annual Report: Council approved a 2% assessment increase for the Downtown Visalia Property and Business Improvement District for the 2024/25 tax roll (vote 4-0; Council Member Nelsen recused). The district will continue supplemental services including security, landscaping, and graffiti removal.
  • TCBIA Annual Report: Council accepted the Town-Center Business Improvement Area annual report and renewed the management agreement with Downtown Visalians, Inc. (vote 4-0; Nelsen recused).
  • Marseille Landscape and Lighting District (Regular Session, Public Hearing): Balloting resulted in 44 votes to reject the proposed assessment increase and 22 to allow it. The increase therefore failed; the current assessment will remain.
  • Item 4 – ECO Transitional Jobs Program (Pulled from Consent): Council authorized a $245,000 agreement with the Workforce Investment Board of Tulare County to continue the ECO program through FY 2024/25, funded from the Solid Waste Enterprise Fund (vote 5-0). Council Member Nelsen requested exploring permanent funding.
  • Item 8 – Shade Structure for Provident Skate Park (Pulled from Consent): Council approved a $327,353 contract with Zoom Recreation for shade structure design and installation at Provident Skate Park (vote 5-0). Discussion included the need for shade at all parks; staff noted seven parks are covered with ARPA funds and others will follow over 10 years.
  • Miscellaneous Special Assessments (Public Hearing): Council adopted Resolution 2024-12 to place $8.39 million in assessments on the Tulare County tax roll for 25,777 parcels. Several property owners contested charges; those items were set for follow-up on June 17.
  • Cannabis Business Tax (Public Hearing): Council approved first reading of Ordinance 2024-06 and adopted Resolution 2024-24 to place a cannabis business tax measure on the November 2024 ballot. The general tax would be up to 10% of gross receipts (or $10/sq. ft. for cultivation), estimated to raise $500,000 annually. The measure does not legalize cannabis businesses; it only establishes a tax if the council later permits them or state law mandates. Vote 5-0.
  • Measure N Budget (Public Hearing): Council conducted the second public hearing on the proposed FY 2024/25 and 2025/26 Measure N budget, which totals $15.8 million in Year 1 and $16.5 million in Year 2. The budget includes new police officers and street maintenance increases. No vote; will be included in the two-year budget adoption on June 17.
  • Urgency Ordinance Extension for Massage Establishments (Public Hearing): Council extended Ordinance 2024-05 for an additional 22 months and 15 days to continue regulating massage establishments as an interim emergency measure. Staff is working on permanent code updates. Vote 5-0.
  • City Logo Discussion: Following extensive public comment, Council directed staff to pursue options 3 and 5: (3) retain the previous logo as a legacy logo and use the current logo where appropriate, and (5) open a new design process involving local artists and a community voting process. Council also requested that all historical city logos be displayed in the new civic center. Vote 5-0.

Key Outcomes

  • DTVPBID 2% assessment increase approved (4-0).
  • TCBIA annual report and management agreement renewal approved (4-0).
  • Marseille LLMAD assessment increase rejected (ballot 44-22); no change.
  • ECO Transitional Jobs Program approved ($245,000, 5-0).
  • Provident Skate Park shade structure approved ($327,353, 5-0).
  • Miscellaneous Special Assessments Resolution 2024-12 adopted (5-0); contested items deferred to June 17.
  • Cannabis Business Tax first reading and ballot measure resolution adopted (5-0).
  • Urgency Ordinance Extension for massage establishments approved (5-0).
  • Logo direction: Council adopted options 3 and 5 (5-0).
  • Consent Calendar approved (5-0) with items 4 and 8 pulled and separately approved.
  • Budget, rates and fees, and Measure N budget will be finalized on June 17.

Meeting Transcript

Carl of the work session of the Viselia City Council. We're gonna begin with public comments. Citizens are now invited to comment on issues within the jurisdiction of the Visalia City Council and items listed on the closed session. Uh the council asks that you keep your comments concise and positive, creative criticism presented with appropriate courtesy is welcome. Each speaker will be allowed three minutes at a timer, will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence. Okay. Good afternoon, council. My name is Matthew Mangroni, M A T T H E W M I N G R O N E. I just want to introduce myself. I'm the new president and CEO of the Portabil Chamber, and I just wanted to say uh good luck in your process and uh thank you for uh allowing me to be here. Thank you. Welcome, congratulations. Hello, council. This is April Lancaster, resident of the City of Isaiah District 2. Um, I had some issues that I wanted to bring to you guys about the downtown Viselians organization. Um, unfortunately, I have tried to raise those um concerns with the downtown organization in their meetings, and unfortunately haven't gotten very far with that. So I have some concerns about the downtown Viselians, which manages both the TCBI and the POA, which reports you're gonna be receiving this evening. Um the DTV's annual reports lack the current bylaws, including concerning changes made in 2019 regarding board member appointments and term limits. Despite my raising these concerns and submitting public comments, DTV requested bylaw amendments through a Google form in April of 2024 bypassing proper procedure. My attempt to inspect DTV books, membership records, and meeting minutes as statutory member on October 4, 2023 were not honored, potentially violating the public records act and the Brown Act. Um the DTV director, City Council member raises concerns about divided loyalties. The DTB executive president reportedly has a security contract with the POA, creating another potential conflict. DTB lacks a proper human resources department to address such concerns. The proposed PLA assessment increases and prior increases that are being discussed this evening may not have followed proper notification procedures and mandated by law. I would like to urge you to thoroughly investigate these matters and take action to ensure transparency, adherence to bylaws, and address potential conflicts of interest while the DTB and P within the DTV and POA. This includes ensuring DTB compliance with proper bylaw procedures and record keeping, addressing potential conflicts of interest among DTV leadership, and verifying the legality of proposed POA assessment increases. Thank you. Um, for those downtown Vision's issues, that is a downtown Visalia issue, not a city of Visoya, they're their own board, so those issues wouldn't need to go to them. Any more public comment. All right, seeing none. This started with uh item number one fiscal year 2024 slash 25 and 2526 proposed budget. Good evening, council. My name is Renee Nagel, and I am the finance uh and technology director for the city of Iselia. With me tonight, I have Amy Xwarengen, who is our budget analyst, and Gina Ferguson, who is our financial analyst as well. So tonight um we will be presenting um this is the first of two or many more meetings, um, of the fiscal year 24-25 and 25-26 proposed budget. Tonight's proposed budget for the two years includes general fund discussions, recommended positions, and future challenges. Council has reviewed all capital projects and measure in at previous council meetings. Council's concerns arising from tonight's discussion will be brought back on June 17th or or sooner if needed. The budget has been made available to the public and can be accessed on our website at Viselia.city under our department finance proposed budget the budget process is a 10-month process, or if not a little longer when you count as starting it earlier. Um, but it consists of the public, it consists of all the departments in the city of Visalia and of course city council over the last 10 months. So tonight is the the first meeting again of several, which hopefully for the month of June will end with an adopted budget on June 17th to be able to be effective July 1st. Please remember that the adopted budget can be revised at any regular scheduled council meeting. Um and throughout the year, staff will continue to continue to monitor revenue and expenditures. As shown on the slide, we always come back with presentations and updates that will focus on 2425, 2526 twice, and then of course, again, as mentioned earlier. Um the budget is always being revised at each council meeting as additional appropriations are needed, additional grants are applied for, and so the budget document is always a changing document. At the start of the budget process, council was set, um council was asked to set goals and priorities, and council did set five goals and priorities. These were quality of life, fiscal strength, invest in infrastructure and growth, organizational excellence, and economic vitality. We are proud to say that this budget includes all five goals and priorities and have been met in both years of the proposed budget. The proposed budget for the first year amongst all funds, which is what's included in the proposed document, um, is 295.3 million, and the second year it increases to 329.9 million as well.

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