SPECIAL CITY COUNCIL MEETING (BUDGET WORKSHOP)

General Fund Stability and Budget Workshop

• Staff projected a structural deficit by fiscal year 2029-2030 without revenue adjustments.
• Council discussed reserve policy, staffing evaluations, and the proposed park assessment levy.
• The staff report was received and filed with action items assigned for future studies.
• Staff recommended aligning the budget workshop with the City Council retreat in January or February.

• Meeting: Moorpark City Council Special Meeting Date: June 22, 2026 Subject: General Fund Stability and Budget Workshop

Opening Proceedings

• The meeting was called to order by Mayor Innegren. The Pledge of Allegiance was recited. The Clerk called the roll, recording Council Members Barrett, Delgado, and Means as present, and Mayor Innegren as present. Dr. Castro was noted as not yet having joined but later participated.

Public Comment

• The Clerk reported that no speakers had submitted cards, and no public comment was received.

Agenda Item 5A: General Fund Stability and Budget Workshop

• City Manager Gagahena and Finance Director Deaver presented on general fund sustainability, long-term financial planning, and budget workshops. Key points of the presentation included:
• Financial Projections: Assumptions included a 2% property tax increase and a 3% franchise fee increase. The long-term financial plan projects a structural deficit beginning in fiscal year 2029-2030 without revenue adjustments. A proposed park assessment levy could delay the deficit to fiscal year 2031-2032.
• Reserve Funds: The city maintains approximately 90% of general fund expenditures as a balance as of June 30, 2027. The Government Finance Officers Association recommends no less than two months of operating reserves, while Moody’s AAA rating requires 35% of general fund reserves.
• Revenue and Expenditures: Staff detailed general fund revenue sources (taxes, fees, investment earnings) and expenditures (salaries, police services, contracts). Staff noted that future property tax revenue from current and planned developments is not included in projections due to unknown timing and values.
• Budget Timing: Staff recommended moving the budget workshop to January or February, aligning it with the City Council retreat, to allow for priority setting and detailed budget adjustments for the next two-year cycle.

Discussion and Q&A

• Council Members Means, Castro, Delgado, Barrett, and Mayor Innegren asked questions regarding the presentations. Topics addressed included:
• Forecasting Accuracy: Council Members inquired about the reliability of forecasts given that the current fiscal year has not closed and uncertainty regarding future development revenue. Staff noted that more clarity is available in August-September and during the formal budget process in January-February.
• Impact Fees: Questions were raised regarding how impact fees are collected, restricted, and compared to past development agreements. Staff confirmed current fees are standardized and restricted to specific uses.
• Park Assessment: Council Members sought clarification on the fee amount, its ability to cover park maintenance costs, and its impact on the general fund deficit. Staff indicated the fee aims to cover 75% of maintenance obligations.
• Staffing and Consultants: Council Members discussed the evaluation of optimal staffing versus contracted services. Staff noted a future presentation will analyze contracts and compare them to hiring full-time staff for cost savings and efficiency.
• Public Safety: Chief Odeneth provided information on downtown liaison deputy activities and costs, noting increases in calls for service related to traffic and mental health but not necessarily crime.
• Reserve Policy: Council Members discussed the reserve policy, noting the city had drawn down reserves significantly for projects and the need to maintain adequate cash flow.

Decisions and Actions

• Report: The staff report on general fund stability was received and filed.
• Action Items: Staff noted several items for future presentation or action, including:
• An evaluation of consultant usage versus internal staff capabilities.
• An update on economic development, including the hotel project.
• A benefits assessment study.
• A review of the reserve policy.
• Aligning the budget workshop with the City Council retreat in January or February.
• Motion to Adjourn: A motion to adjourn the meeting was made, seconded, and carried by the council. All members in favor voted "Aye."

Adjournment

• The meeting was adjourned.