City Council — February 3, 2026

Solid Waste Enterprise Fund

• A consultant presented projections showing negative cash balances through 2028.
• Rate increase scenarios were discussed to improve fund creditworthiness.
• The Council selected an internal funding plan using city reserves instead of loans.
• This approach avoids immediate rate hikes and reduces interest costs.

Street Maintenance Special Tax

• An ordinance was adopted to place a temporary special tax on the ballot.
• The measure is scheduled for the consolidated municipal election in June 2026.
• Specific ballot wording was selected for voter consideration.
• Designated council members will draft the argument in favor of the measure.

Tree Trimming Contract

• A new contract for on-demand tree trimming services was approved.
• Concerns were raised regarding RFP criteria limiting local business competition.
• The selected vendor offered costs significantly lower than the previous provider.

Restricted Funds

• Council members inquired about the legal nature of restricted funds for improvements.
• The City Attorney clarified that state law mandates these fund designations.
• The proposal to maintain these restricted accounts was approved.

• Here is a summary of the City Council meeting based on the provided transcript:

Solid Waste Enterprise Fund and Rate Adjustments

• Financial Presentation: A consultant presented the financial health of the solid waste fund, noting negative cash balances expected through 2027/2028 under current projections. To qualify for a "lease-lease buyback" loan (tax-exempt debt), the fund needs to be "in the black" by a June 30th deadline.
• Rate Hike Scenarios: Three scenarios for rate increases starting July 1, 2027, were presented to improve creditworthiness: a 15% one-time hike, an 8% followed by 7% hike, or a 5% hike. Under these plans, Lompoc would become one of the most expensive cities for trash in the county.
• Alternative Funding Proposal: Council Member Vega proposed funding the required $7.1 million debt internally using city reserves rather than taking out an external loan or raising rates immediately. The proposal included $2 million from the Water Department and $5 million from other accounts (Street Improvement Fee and Restricted Cash Government Building Reserve).
• Decision: The Council voted 5-0 to proceed with the internal funding plan (inter-fund transfer) to pay back the debt service themselves. This decision avoids the external lease-buyback loan, saves an estimated $3.5 million in interest, and prevents immediate residential rate hikes.

Special Tax for Street Maintenance (Item 12)

• Purpose: The Council discussed placing a temporary special tax on the ballot to fund the repair and maintenance of city streets.
• Election Details: The measure is scheduled for the consolidated special municipal election on June 2, 2026.
• Resolutions:
• Ordinance 1741 to submit the tax was adopted 4-1 (Council Member Ball voted no).
• Resolution calling for the election was passed.
• Ballot Question: Option 1 was selected for the ballot wording.
• Arguments: Rebuttal arguments will not be permitted. Mayor Mosby and Council Member Vega were designated to draft the argument in favor of the measure.

Other Agenda Items

• Tree Trimming Contract (Item 9): The Council approved a new contract for on-demand tree trimming. Council Member Bridge voted no, arguing the Request for Proposal (RFP) criteria (such as specific municipal experience requirements) stifled competition and made it difficult for local businesses to bid, though the contract was 59% lower in cost than the previous vendor. The motion passed 4-1.
• Restricted Funds (Item 5): Council Member Bridge questioned the nature of restricted funds for road and park improvements. The City Attorney clarified these are restricted by state law once collected and designated. The item was approved 5-0.

Public Comment

• Accounting & Transparency: A resident criticized the accounting methods, urging the city to restrict funds properly and stop "horse trading" between departments.
• Efficiency: One resident suggested hiring an internal Industrial Engineer to optimize city processes rather than hiring consultants. Another suggested long-term solutions like a transfer station to ship trash via rail to reduce landfill dependency.
• Cost of Living: Residents expressed concern that aggregate utility costs are becoming too high for tenants and homeowners, urging the Council to look at every possibility to limit increases.

Council Comments

• Council members discussed upcoming events (Communify 211) and thanked staff for their work on the financial studies.
• Council Member Bridge requested to add items to the next agenda to discuss improving council efficiency, transparency, and access to electronic systems.