HomeMy WebLinkAboutE.1 - Minutes, May 27, 2025, Special Meeting
SPECIAL MEETING OF THE CITY COUNCIL,
THE SUCCESSOR AGENCY TO
THE FORMER REDEVELOPMENT AGENCY,
THE PUBLIC FINANCING AUTHORITY
OF THE CITY OF AZUSA
TUESDAY, MAY 27, 2025
The City Council of the City of Azusa met in Special Session at Azusa Light and Water 729 N. Azusa Avenue,
Azusa, CA 91702.
A. PRELIMINARY BUSINESS
Mayor Gonzales called the Special Meeting of the City Council to order at 7:19 pm.
ROLL CALL: Roll call was taken by City Clerk Cornejo.
PRESENT: COUNCILMEMBERS: GONZALES, ALVAREZ, AVILA, MENDEZ, BOW
ABSENT: COUNCILMEMBERS: NONE
Elected Officials: City Clerk Cornejo, City Treasurer Vasquez
Staff Members: City Manager Gonzalez, City Attorney Martinez, Deputy City Manager DeAnda-Scaia,
Director of Administrative Services Johnson, Chief of Police Wenrick, Police Captain Landeros, General
Manager of Utilities Singh, Director of Community Resources Carpenter, Director of Public Works Delgadillo,
Economic & Community Development Director Jimenez, City Clerk Services Manager Juarez, Community
Improvement Manager Edson, Assistant General Manager-Electric Operations Vuong, Assistant General
Manager – Water Barbosa, Assistant General Manager-Resource Management Torres, Administration and
Finance Manager Smith, Environmental Programs Specialist Sagun, Budget & Revenue Administrator Lam,
Library Services Manager Hassan, Sr. Management Analyst Paez, Senior Storekeeper Alvarez, Management
Analyst Reagan, Senior Payroll Specialist Rodriguez, and HR/Risk Management Analyst Nguyen.
B. PUBLIC COMMENT
None.
CONSENT ITEM
E-1
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May 27, 2025
C. SCHEDULED ITEMS
1. PUBLIC HEARING REGARDING AB-2561 LOCAL PUBLIC EMPLOYEE; VACANT POSITIONS.
Administrative Services Director Johnson presented a report to the City Council advising that in September
2024, AB-2561 revised the Meyers, Milias, Brown Act; stated that new obligations relating to the tracking and
publicly regarding presenting information regarding job vacancies, recruitment status, and the retention efforts
were placed on public agencies; and discussed City requirements to present information regarding the status of
the City’s vacancies and recruitment efforts to the governing body at least once per year.
Johnson discussed the process the Human Resources Department follows to recruit positions and is working to
fill the positions that are hard to fill or have a heavy turnover; Staff requested that the City Council receive and
file a policy regarding the reporting of vacancies and the Public Hearing process.
Council raised concerns about the unexpected shifts in job vacancies; Staff explained that, given California’s
labor-friendly environment, the changes were unforeseen and largely driven by the current competitiveness of
the labor market. There was also discussion regarding how frequently the Council would receive updates on job
vacancies. Staff responded that updates would be provided annually, prior to the adoption of the budget.
Mayor Gonzales opened the Public Hearing.
The City Clerk certified the publication of the Public Hearing in the San Gabriel Valley Tribune on May 19,
2025. There being no one wishing to address the council on this issue, Mayor Gonzales asked for a motion to
close the public hearing.
Moved by Councilmember Mendez, seconded by Councilmember Bow and carried unanimously by the
following roll call vote of the Council to close the Public Hearing,
AYES: GONZALES, ALVAREZ, AVILA, MENDEZ, BOW
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Moved by Councilmember Mendez, seconded by Councilmember Bow and carried unanimously by the
following roll call vote of the Council to receive and file the AB 2561 Public Hearing Vacancy Reporting
Policy.
AYES: GONZALES, ALVAREZ, AVILA, MENDEZ, BOW
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
2. BUDGET REVIEW WORKSHOP - FISCAL YEAR 2025/2026-2026/2027 CITY OF AZUSA, CITY
OF AZUSA PUBLIC FINANCING AUTHORITY, AZUSA LIGHT & WATER, AND SUCCESSOR
AGENCY PRELIMINARY OPERATING AND CAPITAL IMPROVEMENT PLAN BUDGET
REVIEW.
City Manager Gonzalez presented the FY 2025/26 and 2026/27 budget, emphasizing the importance of
understanding the City’s financial health; stated that departments build budgets based on annual work output,
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May 27, 2025
balancing continued operations with opportunities for new programs that address Council priorities and
community needs; noted that the City has avoided using one-time revenues for ongoing expenses and has not
presented a budget requiring cuts in the last seven years due to proactive revenue management and open
expenditure planning; and mentioned that reserves are maintained not only for catastrophic events but also for
liabilities, capital outlays, and retiree benefits to guard against unforeseen challenges.
He informed the Council that the presented budget is balanced, with strong and realistic projections; confirmed
that the City is financially stable and that the Council’s priorities have been clearly communicated; mentioned
that the City will invest in both essential infrastructure and visible improvements for residents; stated that
approximately $428,000 is allocated to expand free or low-cost community programs; and shared that a major
lease agreement will upgrade the City’s aging police fleet.
Administrative Services Director Johnson presented the City’s proposed two-year budget, outlining the budget
strategy, development process, and financial framework; presented key national, local, and regional economic
indicators for the City’s financial outlook which impact revenue, labor negotiations, housing policy, and long-
term planning; and discussed upcoming challenges and the strategic solutions included in the budget.
The Council inquired about the rising cost of construction materials, asking whether the prices reflect current
economic conditions or future projections; Staff confirmed that the prices are based on today’s rates in
accordance with CPI trends.
Johnson presented the proposed General Fund budget; noting its diverse revenue base, which reduces reliance
on property and sales taxes; stated that the proposed spending is fiscally responsible and meets community
needs; highlighted key revenue and expenditure changes, including increases in property taxes, transactional use
taxes, and utility users’ taxes; and explained budget variances, factoring in salary and wage increases from
recent labor negotiations; and confirmed that the budget is balanced for both years.
She reviewed budget items above standard operations for the next two years; mentioned that a major change is
funding the Azusa Resource Center (ARC), which costs $1.2 million annually; General Fund outlay is projected
at $600,000 in 2026 and $800,000 in 2027 after initial grant offsets; and a citywide cost center that funds the
OPEB Trust initially $1.5 million and usually $1 million annually was reduced to $500,000 in 2026 and
$300,000 in 2027; and insurance premiums will rise by $645,000 in 2025–26, with $429,000 from the General
Fund.
The Council inquired about the OPEB Trust Fund, to which Staff explained that contributions would be paused
for a few years and revisited later. Council also questioned the $600 increase in Workers’ Compensation costs
and asked what steps would be taken to reduce it. Staff responded that they are exploring different agencies and
comparing options to secure better insurance rates.
Johnson reported that Community Resources is requesting $430,000 in additional funding to expand programs
and events, including $75,000 in the 2025–26 budget for library relocation during modernization. There was
discussion regarding the increased funding and library project costs.
City Manager Gonzalez noted the largest request comes from the Police Department, $400,000 annually for an
enhanced vehicle lease to expand the fleet to over 30 vehicles, replacing the current Enterprise lease. Chief
Wenrick addressed vehicle shortages, outlined benefits of the new lease, and discussed off-road vehicles,
horses, the Community Police Academy, and the CERT program.
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Economic & Community Development Director Jimenez requested $75,000 for downtown activation events to
attract visitors and boost local business. There was discussion regarding the proposal and broader economic
development efforts.
Administrative Services Director Johnson reviewed the City’s reserve policy; noting 40% of the budget is set
aside for stabilization and cash profit events, currently just under $25 million and projected to reach $29–$30
million over the next two years; mentioned the capital asset and infrastructure replacement reserves of $3
million remain untouched unless major project costs exceed estimates; and insurance reserves cover claim
deductibles, and the employee retirement fund holds $2 million; noted that the current policy is reaffirmed, total
reserves are projected at $42 million by 2026 and over $37 million (50% of the budget) by 2027, with additional
undesignated reserves of $4.5 million in 2026 and $3.7 million in 2027.
Johnson addressed the 2025–27 budget to include $61 million in Capital Improvement projects (some
unfunded), $2.8 million in one-time capital outlays, and personnel costs of $252 million, resulting in a net gain
of two FTEs; mentioned the revenues are projected at $208 million in 2026 and $214 million in 2027, with
expenditures at $229 million and $214 million, respectively; and stated only $151,000 in Capital Projects will
be funded by the General Fund.
Staffing changes bring totals to 329 full-time and 49 part-time positions, with five new full-time roles, two
eliminations, and two part-time conversions. The Five-Year CIP identifies $94 million in project needs, with
$38 million funded from special revenues and $75,000 from the General Fund. Over $22 million is already set
aside for key projects such as the Senior Center, Library, Dog Park, and Downtown improvements.
The proposed budgets of $220 million in FY 2026 and $214 million in FY 2027 are balanced, with a $300,000
General Fund surplus. Reserves remain strong, ensuring capacity for unforeseen costs. Council discussed,
sought clarifications, and thanked staff for a thorough and conservative budget. The City Manager affirmed the
City’s solid financial position and commended Staff efforts.
The proposed FY 2025/26 and 2026/27 budgets were reviewed, and directions were provided on any desired
adjustments prior to the scheduled adoption on June 16, 2025.
D. COUNCIL COMMENTS
None.
E. ADJOURNMENT
Mayor Gonzales adjourned the meeting.
TIME OF ADJOURNMENT: 9:37 P.M.
_________________________
CITY CLERK
UPCOMING MEETINGS:
June 2, 2025, 6:30 p.m. Closed Session, 7:30 p.m. Regular Meeting
June 16, 2025, 6:30 p.m. Closed Session, 7:30 p.m. Regular Meeting