City Council — 2021-05-11

Budget and Revenue Projections

• Hotel tax revenue is projected to decline to $2.8 million due to ongoing staffing shortages.
• New Cannabis tax estimates and ARPA funding aim to offset a $150,000 General Fund shortfall.
• Measure C funds will support nearly $4 million in Capital Improvement Projects through additional grants.

Community Support Funding Requests

• Three organizations submitted funding requests for operations, wildfire mitigation, and business support contracts.
• The Council postponed funding decisions to review the full budget picture during a deficit.
• Requests were received and filed for potential reconsideration in future budget workshops.

Redistricting Project

• Staff confirmed state and federal mandates require a new district map by April 2022.
• The Council approved a $71,000 service agreement with Redistricting Partners for demographic consulting.
• The vendor selection included full-service public outreach to meet upcoming legal deadlines.

Other Council and Staff Reports

• Staff is launching a parking demonstration project involving space widening and potential bike lanes.
• Council discussions addressed pending Vehicle Maintenance Unit zoning and Sheriff department lease rates.

• The City Council of Ojai held a budget workshop meeting to discuss financial projections, community funding requests, and mandatory redistricting. The following key points were addressed:

Budget and Revenue Projections

• Revenue Forecast: The Finance Director presented updated projections. Hotel tax is projected at $2.8 million for the coming year (down from pre-COVID levels of $3.7 million) due to staffing shortages in the hospitality industry. Sales tax is projected to return to $1.75 million, though new state rules regarding online purchases (Amazon/Wayfair) may create downward pressure.
• New Revenue Streams: A new Cannabis tax is estimated to bring in approximately $360,000 annually, with policy prepared to designate these funds for reserves. The city also received $650,000 in American Rescue Plan Act (ARPA) funding to help restore service levels.
• Expenditures & Shortfall: The draft budget anticipates restoring vacant staff positions, a 5% police budget increase, and one-time costs for the General Plan update, Housing Element, and Redistricting. Despite a $200,000 contingency fund, the General Fund currently shows a $150,000 shortfall.
• Capital Projects: Measure C funding is projected at $1.4 million for the next year, leveraging additional grants to support nearly $4 million in Capital Improvement Projects (CIP).

Community Support Funding Requests

• Three organizations requested funding for the upcoming fiscal year, but the Council postponed decisions to review the full budget picture:
• Ojai Valley Museum: Requested $50,000 for operations and to reopen fully.
• Ojai Valley Fire Safe Council: Requested $50,000 to support wildfire mitigation, grazing programs, and evacuation vulnerability assessments.
• Chamber of Commerce: Requested funding for a contract renewal, highlighting their work in supporting local businesses during the pandemic.
• Council Decision: While some members expressed strong support for the organizations as community pillars, the Mayor noted the city cannot afford to fund nonprofits while in a deficit. The Council voted unanimously to "Receive and File" the requests, planning to revisit funding in subsequent budget workshops.

Redistricting Project

• Legal Requirement: Staff and the City Attorney confirmed that redistricting is legally mandated under state and federal law due to new Census data, with a final map deadline of April 2022.
• Contract: The Council voted to approve a service agreement with Redistricting Partners for a demographic consulting contract not to exceed $71,000. This vendor was selected over competitors for offering a full-service bid including public outreach.
• Timeline: The process involves establishing a website, public hearings, and draft maps leading up to adoption in February 2022. The Council expressed frustration with the cost and necessity but acknowledged they must proceed regardless of pending litigation regarding district vs. at-large voting systems.

Other Council and Staff Reports

• Next Meeting: The upcoming May 25th meeting will focus on CIP projects, Measure C priorities, the General Plan vision, and a pesticide management program request.
• Infrastructure: Staff is beginning a parking demonstration project involving widening parking spaces and potentially adding bike lanes. "Zebra Dillo" markings are being removed to make way for modifications.
• Ongoing Issues: Council members raised concerns regarding a delayed Vehicle Maintenance Unit (VMU) zoning review, a solid waste diversion vote in Oxnard affecting the region, and the need to finalize a lease rate for the Sheriff's department.
• Community Events: The Mayor promoted Emergency Preparedness Day (May 27th) and thanked staff for a successful Arbor Day event.