Sales Tax Oversight Board

SALES TAX OVERSIGHT BOARD Special Sales Tax Oversight Board Meeting Minutes MONDAY, JANUARY 23, 2023 – 5:30 PM Chairman Downing called the meeting to order at 5:30p.m. Roll Call of Councilmembers Present: Downing, Bortle, Ardito, Newbold Absent: Heath 1. APPROVAL OF AGENDA: Moved by Bortle; seconded by Ardito to approve. Motion Carried: 4 - 0 Voting For: Downing, Bortle, Ardito, Newbold Voting Against: None Absent: Heath 2. BUSINESS FROM THE FLOOR: No comments. 3. CONSENT CALENDAR: 3.A Minutes of the Sales Tax Oversight Board's December 19, 2022 meeting. 221219.stob.min.draft.pdf Motion to waive the reading of and approve the minutes of the Sales Tax Oversight Board's December 19, 2022, meeting. Moved by Ardito; seconded by Bortle to approve. Motion Carried: 4 - 0 Voting For: Downing, Bortle, Ardito, Newbold Voting Against: None Absent: Heath 4. BOARDMEMBER ITEMS/REPORTS: Vice Chair Bortle wanted to bring forward that there have been a few people outside of the city limits that have been charged the additional sales tax. He stated that those who are in the 96130 zip code may be those who are experiencing that issue as the state lumps areas by zip code. He added that staff may want to bring an item forward to the Council to make the community aware and show that they are trying to fix it. Mr. Newton stated that it may be outside the purview of this Board however, he is thankful for the information and stated that staff has heard some hints of this and have already tried to make contact with the Board of Tax and Fees. Chairman Downing inquired as to whether or not the goverance documents were approved by the Council to which Mr. Newton confirmed. 5. NEW BUSINESS: 5.A FY 2022-2023 Mid-Year Budget Receive report on proposed FY 2022/2023 Mid Year Budget and consider report to City Council regarding expenditure of Measure P revenues as presented at mid-year. Dan Newton, City Administrator, stated that he has provided a copy of the city's adopted budget process and policies. He also stated that Chandra Jabbs, Finance Manager, also

provided a draft report based on a version found online from another agency that she will present following his report. He stated that it was originally thought that the budget would be ready for review at this meeting, and then presented to council on the February 15th meeting. However, it now looks like that will happen the first meeting in March. He reviewed the sections in the document, specifically the Sales Tax Oversight Board areas. He provided an explanation of how the mid-year budget review worked and what the departments are required to do. He added that not a lot of changes have been requested by the departments; however, the public safety area will need to be addressed due to the new SPOA contract. He pointed out the area that stated that unexpended funds in a department wil stay within those departments which will help in keeping monies separate. He stated that Streets and Business Development will be a little different however, there is a plan that will be proposed. Vice Chair Bortle inquired as to whether or not the funds can be used for one-time purchases. Mr. Newton responded that those one-time expenses are permitted but, the funding will remain in the fund and it can build up. Chairman Downing inquired as to whether or not the $130,000 was for only staff time or something else to which Mr. Newton responded. Ms. Jabbs presented the report and stated that, although there are 2 pages, the background and introduction would not change and would carry forward should the Board decide to move forward with this template. She added that streets and the MOE $60,000 requirement is also accounted for in this model. Mr. Newton also provided information regarding when the tax would be recieved. Initially, we were told we would get an additional quarter of sales tax for October-December. Ms. Jabbs stated that to date, the city has only recieved one payment but, because we don't yet have all the information so there is no plans to adjust the focast at this time. She stated that the second area of the mid-year budget are the actual revenues and expenditures seen to date. The proposed report when then close with a conclusion section of the report. Ms. Jabbs inquired if there is anything that they would like to see differently. Vice Chair Bortle requested that in both sections, the expeditures and revenues should be separate so you can compare the two. It was also requested that the $190,441.22 say that it was each month, not for the quarter. Chair Downing also requested that the very end, add the Public Works Department be listed for the $60,000. He thanked staff for finding that format as he liked it. He inquired as to whether or not it would just come back with updated data at the next meeting. It was the consensus of the Board to move forward with this format with the requested changes.

Moved by Ardito; seconded by Newbold to accept the draft as written and staff to bring back a finalized report for approval. Motion Carried: 4- 0 Voting For: Downing, Bortle, Ardito, Newbold Voting Against: None Absent: Heath 6. CONTINUING BUSINESS: No business. 7. ADJOURNMENT: It was the consensus of the Board to meet on February 13, 2023, at 5:30pm due to the holiday on February 20, 2023. Motion to adjourn at 6:16pm. __________________________ Tom Downing, Chairman Respectfully submitted by: __________________________ Approved on: February 13, 2023 Heidi Whitlock, City Clerk

CALL TO ORDER

ROLL CALL

1. APPROVAL OF AGENDA: (Additions and/or Deletions)

2. BUSINESS FROM THE FLOOR: Any person may address the Board at this time upon any subject

on the agenda or not on the agenda within the jurisdiction of the Board. However, comments on

items on the agenda may be reserved until the item is discussed and any matter not on the agenda

that requires action will be referred to staff for a report and action at a subsequent meeting.

Presentations are subject to a five-minute limit.

3. CONSENT CALENDAR: All matters listed under the Consent Calendar are considered to be

routine by the Board. There will be no separate discussion on these items. Any member of the

public or the Board may request removal of an item from the Consent Calendar to be considered

separately.

3.A Minutes of the Sales Tax Oversight Board's December 19, 2022 meeting.

4. BOARDMEMBER ITEMS/REPORTS:

5. NEW BUSINESS:

5.A FY 2022-2023 Mid-Year Budget

6. CONTINUING BUSINESS:

7. ADJOURNMENT:

The next regular meeting of the Board to be held on March 20, 2023 at 5:30PM.

Reports and documents relating to each agenda item are on file in the Office of the City Clerk and are

available for public inspection during normal business hours and at the meeting. These reports and

documents are also available at the City’s website www.cityofsusanville.net, unless there were systems

problems posting to the website.

Accessibility: An interpreter for the hearing-impaired may be made available upon request to the City

Clerk seventy-two hours prior to a meeting. A reader for the vision-impaired for purposes of reviewing

the agenda may be made available upon request to the City Clerk. The location of this meeting is

wheelchair-accessible.

I, Heidi Whitlock, certify that I caused to be posted notice of the meeting scheduled for January 23, 2023 in the

areas designated on January 20, 2023.

CITY OF SUSANVILLE

66 N. Lassen Street • Susanville CA

Tom Downing, Chair

Curtis Bortle, Vice Chair

Tony Ardito • Rita Heath • Jan Newbold

Sales Tax Oversight Board

Special Sales Tax Oversight Board Meeting • City Council

Chambers 66 N. Lassen Street, Susanville, CA 96130

Monday, January 23, 2023 – 5:30 PM

CALL TO ORDER ROLL CALL 1. APPROVAL OF AGENDA: (Additions and/or Deletions) 2. BUSINESS FROM THE FLOOR: Any person may address the Board at this time upon any subject on the agenda or not on the agenda within the jurisdiction of the Board. However, comments on items on the agenda may be reserved until the item is discussed and any matter not on the agenda that requires action will be referred to staff for a report and action at a subsequent meeting. Presentations are subject to a five-minute limit. 3. CONSENT CALENDAR: All matters listed under the Consent Calendar are considered to be routine by the Board. There will be no separate discussion on these items. Any member of the public or the Board may request removal of an item from the Consent Calendar to be considered separately. 3.A Minutes of the Sales Tax Oversight Board's December 19, 2022 meeting. 4. BOARDMEMBER ITEMS/REPORTS: 5. NEW BUSINESS: 5.A FY 2022-2023 Mid-Year Budget 6. CONTINUING BUSINESS: 7. ADJOURNMENT: The next regular meeting of the Board to be held on March 20, 2023 at 5:30PM. Reports and documents relating to each agenda item are on file in the Office of the City Clerk and are available for public inspection during normal business hours and at the meeting. These reports and documents are also available at the City’s website www.cityofsusanville.net, unless there were systems problems posting to the website. Accessibility: An interpreter for the hearing-impaired may be made available upon request to the City Clerk seventy-two hours prior to a meeting. A reader for the vision-impaired for purposes of reviewing the agenda may be made available upon request to the City Clerk. The location of this meeting is wheelchair-accessible. I, Heidi Whitlock, certify that I caused to be posted notice of the meeting scheduled for January 23, 2023 in the areas designated on January 20, 2023. CITY OF SUSANVILLE 66 N. Lassen Street • Susanville CA Tom Downing, Chair Curtis Bortle, Vice Chair Tony Ardito • Rita Heath • Jan Newbold Sales Tax Oversight Board Special Sales Tax Oversight Board Meeting • City Council Chambers 66 N. Lassen Street, Susanville, CA 96130 Monday, January 23, 2023 – 5:30 PM 1

AGENDA ITEM NO. 3.A Action Item Submitted By: Heidi Whitlock, Administrative Services Action Date: January 23, 2023 SUBJECT: Minutes of the Sales Tax Oversight Board's December 19, 2022 meeting. PRESENTED BY: Heidi Whitlock, City Clerk SUMMARY: Attached for the Board’s review are the minutes of the December 19, 2022 meeting. FISCAL IMPACT: None. ACTION REQUESTED: Motion to waive the reading of and approve the minutes of the Sales Tax Oversight Board's December 19, 2022 meeting. SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 221219.stob.min.draft.pdf 2

SALES TAX OVERSIGHT BOARD Sales Tax Oversight Board Minutes MONDAY, DECEMBER 19, 2022 – 5:30 PM Mr. Newton called the meeting to order at 5:30pm. Roll Call of Councilmembers Present: Ardito, Bortle, Downing, Heath, & Newbold Mr. Newton suggested that the Board approve the agenda with item number 4A being heard prior to the consent calendar. 1. APPROVAL OF AGENDA: Moved by Downing; seconded by Ardito to approve the agenda with the suggested change. Motion Carried: 5 - 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 2. BUSINESS FROM THE FLOOR: No public comment. 4.A Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. Item moved during agenda approval. Mr. Newton explained the process of nominating a Chair and Vice Chair for the Board. Ms. Newbold nominated Mr. Ardito for Chair, he declined. Mr. Bortle nominated Ms. Heath for Vice Chair, she declined. Mr. Ardito nominated Mr. Downing as Chair, seconded by Ms. Newbold. Motion carried unanimously. Ms. Heath nominated Mr. Bortle, seconded by Mr. Ardito. Motion carried unanimously. 3. CONSENT CALENDAR: 3.A Minutes of the Sales Tax Oversight Board's November 28, 2022, regular meeting. 221128stob.min.draft.pdf Motion to waive oral reading and approve minutes of the Sales Tax Oversight Board's November 28, 2022, regular meeting. Moved by Bortle; seconded by Ardito to approve. Motion Carried: 5- 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 4. NEW BUSINESS: 4.A Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. Item heard following Business from the Floor. 4.B Consider the City of Susanville Sales Tax Oversight Board Governance Practices Mr. Newton presented draft governance practices to the Board for review. He stated that he researched other jurisdictions that have a Sales Tax Oversite Board, and he drafted the Goverance Practices based on those areas. He stated that there are three times throughout 3

the year where the Board is charged with reviewing the budget. Those times being the annual budget proposal to City Council, the mid-year budget review proposal to City Council and the Year End Final Expenditure review. He added that someone will have to write a report for Council review and continued with the review of the entire document. Ms. Heath asked if the governance practices help establish the procedures for future boards. Chair Downing also responded that yes, this document would establish meeting standards but, as a Board, they could be altered when needed. Vice Chair Bortle stated that he agreed with everything in the document however, he had concerns with the frequency of the meetings on the front end to which Mr. Newton responded that the document specifies regular meetings, but special meetings can also be called when needed. Boardmember Ardito inquired as to whether they would offer the report before or after the Council adopts the annual budget. Mr. Newton responded that before the budget is approved, staff should be able to include the report findings within the STOB report into the budget. Chair Downing requested that staff draft the report with input from the Board. The Board agreed unanimously. It was added that it should also state that city staff will prepare the report in the format approved by the STOB for STOB's final review and approval. Chair Downing also inquired as to whether staff should be live streaming the meetings. The Board agreed that it should be but asked about the capability of doing so. Mr. Newton responded that there are limitations with the current system but, added that staff is currently working with IT in Redding to get upgrades to make the streaming more stable. Boardmember Heath inquired as to who she would ask questions if she had them, who is the Board permitted to talk to. Mr. Newton responded that there is a line between asking questions and providing direction. There should not be an issue as there is no direction, only recommendations, coming from the Board. He added that both he and Ms. Jabbs would be contacts. He also went into how items get on the agenda. As a board, he stated that the Boardmembers could request items to be placed on the agenda. Ms. Heath asked how the report should be written to which Mr. Newton stated that he would start by reviewing the Ordinance. Ms. Heath requested clarity as to what the Board’s role is. For instance, the intent of the tax is that it should be used on the three items (Public Safety, Streets and Economic Development) as previously discussed. Mr. Newton responded yes; however, the Council could opt to spend the money on something else as it is a general tax, not a special tax. If the Council does choose to spend it elsewhere, the Board could address that in the report provided to the Council. 4

Mr. Newton inquired as to whether or not the Board had additional areas they wanted to review. Boardmember Ardito inquired as to how the money will be split out from the other city monies to which Ms. Jabbs provided an explanation. Mr. Newton offered that a narrow focus may be better for them at first instead of reviewing too much information. Boardmember Heath requested that information be broken down in a very easy way so that everyone will understand what the city has done. Chair Downing offered that it can be included in the report, perhaps an attachment that is placed in bulletpoint structure for easy review. Boardmember Ardito requested to see a sample report from another jurisduction. Boardmember Ardito also asked if they will be able to see what each department does with the money provided to them from the Measure P funding. Mr. Newton stated that police, fire, etc... will not be reconciled individually so, we may not know all of the spending as there are other funds going into their fund as well. A review of the entire document occurred to find any additional items needing to be changed. Mr. Newton made changes as requested. Motion to recommend that the City Council approve the Sales Tax Oversight Board Governance Practices as provided in the staff report OR as amended at the meeting. Moved by Heath; seconded by Bortle to approve. Motion Carried: 5- 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 4.C California Public Meeting Law / Brown Act Information Margaret Long, City Attorney, provided a brief presentation of the Brown Act and what the Board's requirements are. She also reviewed the requirements of the FPPC as well as the Conflict of Interest Code, Rosenberg's Rules of Order, etc... Chair Downing inquired as to whether or not FPPC filings are required. He then requested that tonight's presentation be provided to the board so they can access the links. 5. CONTINUING BUSINESS: 5.A Receive Presentation on City Budget Chair Downing stepped away at 7:05pm and returned at 7:07pm. Ms. Jabbs provided financial documents for review and stated that the Council does not review line items but, instead sees a "broad overview" at the fund level. She reviewed the difference between the revenues and expediture numbers and overall, how to read the documents provided. She provided a discription of how the city pools cash, transfers 5

funds and other information that would help the Board understand the workings of the budget. Ms. Jabbs then reviewed last year's mid-year budget review. Mr. Newton provided information to the Board stating that there is a video on each department on Facebook regarding the budgets as well. Vice Chair Bortle asked how much the city actually had in reserves to which Mr. Newton stated approximately $1.4 million. However, he added that it is typically earmarked for something else. The Council would have to approve it to be spent on something. He added that there is also a rate stabalization fund and available operating funds. Chair Downing inquired as to whether Vice Chair Bortle was concerned with the pooled cash to which he responded no, he just wanted to understand how it works. Ms. Jabbs also pulled up a cash balance sheet to show the Board exactly where the city money currently is. Mr. Newton provided an explanation of how the city charges enterprise funds for items where a nexis can be shown. Boardmember Ardito asked if the departments had a wishlist for items that they need/want since the measure passed. Mr. Newton responded that the city was looking at a $1.2 million deficit this year. Wants or needs were not reviewed because staff has only been looking at ways to cut costs. The tax will bring in a bit more than the $1.2 million but, it would be bad if after the increase, a deficit budget comes back next year. He did state that the Police Department is typically low, but they are currently fully staffed and just recieved a raise. 6. ADJOURNMENT: Chair Downing stated that the next meeting would be on MLK day so suggested the Board meet the Monday the 23rd instead to which everyone agreed. Moved by Bortle; seconded by Heath to adjourn at 8:01pm. Motion Carried: 5 - 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None __________________________ Tom Downing, Chair Respectfully submitted by: ____________________________ Heidi Whitlock, City Clerk 6

AGENDA ITEM NO. 5.A Action Item Submitted By: Dan Newton, Administrative Services Action Date: January 23, 2023 SUBJECT: FY 2022-2023 Mid-Year Budget PRESENTED BY: Chandra Jabbs, Finance Manager SUMMARY: City staff will provide a report to the Sales Tax Oversight Board regarding the proposed mid-year budget. FISCAL IMPACT: None ACTION REQUESTED: Receive report on proposed FY 2022/2023 Mid Year Budget and consider report to City Council regarding expenditure of Measure P revenues as presented at mid-year. SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 7