Finance Subcommittee meeting, 4-24-2025

Thursday, 4-24- Finance Subcommittee meeting, 3 PM, Hybrid. You can find the agenda packet at https://pinoleca.portal.civicclerk.com/event/1033/files/agenda/844 .

There are 4 agenda items for this meeting- 1 consent (approving the prior meeting of April 18th 2024’s minutes) and 3 business items- Financial Year (FY) 2025/6 Financial and Investment Policies, FY 2025/6 Draft Operating Baseline Budget, and FY 2025/6 Draft Five Year Capital Improvement Plan (CIP).

The Fiscal and Investment Policies are on pages 19-53, with no major changes suggested by staff (staff report on pages 15-18, presentation on pages 54-71). I personally would argue that the city’s strategic asset allocation for the pension investment funds investments in particular should shift away from the current 36% in equities as policy (as shown on page 48), given the substantial current and likely ongoing volatility in the equities market as well as the shorter expected remaining lifespan of the fund.

The FY 2025/6 draft operating baseline budget (i.e, not including capital projects or one-time revenue/expenses) staff report is on pages 72-82, presentation on pages 83-124. Some quick highlights- proposed budget is structurally balanced for the general fund with a $1,452,218 surplus. However, Recreation has a deficit of $1,068,171, Pinole Community Television (PCTV) has a deficit of $73,551, and the Building and Planning Fund has a deficit of $711,091 (page 73). These funds do not *have* to be supported from the general fund, but historically have been. You can see more details on the funds breakdown for the Recreation department on page 118, Building and Planning on page 119, and PCTV on 120.

A point of concern is a 11% increase in CalPERS (pension) costs and 10% increase in other (healthcare) costs (page 110). There are also 2 charts worth noting- one covering general fund revenue sources on page 93, and one covering general fund expenditures on page 108.

Finally, the FY 2025/6 Draft Five Year CIP has a staff report on pages 125-6, the summary and projects from pages 127-179, and a presentation on pages 180-9. The fiscal breakdown shows $13,693,831 as projected for FY 2025/6, with $80,000 coming from the general fund directly (although $350,000 will be coming from Measure S 2006 and $1,392,669 from Measure S 2014) (page 127).

A few points worth highlighting- first, these projects will generally *not* show up in the baseline budget, as that is focused on ongoing costs and these are one-time expenditures. Second, there are new projects noted in the presentation (pages 182-6) and as individual items (FA-Facilities, PA-Parks, SS-Sanitary Sewer, SW- Stormwater, RO-Streets and Roads. page 127) FA2502 upgrade of city pools (renovation) (page 128), FA2501 EV charging infrastructure (page 129), PA2501 Improvements to City Parks (annual, renovation) (page 137), SS2501 Treatment Plant Boiler Replacement (replacement) (page 142) SW2501 Stormwater Upgrade and Trash Capture (page 153), RO2508 Americans with Disabilities Act (ADA) Transition Plan Update (page 156), RO2506 Traffic calming program (page 157), RO2505 Safe Routes to Schools (page 158), RO2504 Pavement marking and signage upgrades (renovation) (page 159), RO2503 City Streetlights Upgrade (renovation) (page 160), RO2502 Pinole Signals Upgrade (renovation) (page 161), and RO2501 Accessibility Improvements Project (actually upgrading curb cuts as opposed to planning for it in RO2508) (renovation) (page 162). That’s the projects marked with 2025.

There are also 39 projects carried over from prior years, each on their own page addressing things like Mural Preservation (PA2402, page 138) and Sidewalk Rehabilitation (RO2402, page 165).

You can join the meeting by zoom direct link here, entering the webinar ID
893 3500 0272 into zoom directly, or calling +1 (669) 900-6833 or +1 (253)215-8782 or +1 (346) 248-7799, then entering the meeting ID 893 3500 0272#. Once in the meeting by phone, you can raise your hand by pressing *9, and unmute by pressing *6 once called on. You can also attend the meeting in person at Pinole City Hall, 2131 Pear St.