Rio Vista voters will see “Measure K” on the upcoming election ballot. Measure K is a proposed 1% sales tax increase, which means if you spend $1.00 on taxable goods you would spend an additional penny. City staff has been working hard to provide residents with all the information they need to make an informed vote.
The more information we provide, the more questions we get asked – and that is a good thing! Unfortunately, we cannot prevent information from being misconstrued or taken out of context. Sadly, we are hearing some rumors based on misinformation, and while we don’t have the manpower to monitor and respond to every comment on Facebook and NextDoor, we hope that residents don’t take social media posts at face value and are sure to get the facts.
One of the rumors swirling in the community is that the City has mismanaged funds. We want to address that because the City’s Finance team deserves recognition for the great work they’ve done.
- The City’s General Fund has been managed at a surplus for the last seven years (from Fiscal Year 16/17 to Fiscal Year 22/23) and accumulated a healthy fund balance at 97% of General Fund expenditures in the Budget of FY24/25. The proposal of a sales tax increase is proactive in addressing our upcoming fiscal cliff. We don’t want to wait until the City is at the point of facing bankruptcy.
- Healthy General Fund reserves are necessary to appropriately respond in the event of a natural disaster or other type of emergency, fund equipment replacement, and City building replacement. Should the City drain its General Fund reserves it would not have a funding pot available for these purposes, placing the City at risk.
- The City is supporting local businesses. The City negotiated with the Local Bank, F&M Bank, to match the Interest Rate with the current Local Agency Investment Fund (LAIF) interest rate to benefit the local business while receiving a rate of return consistent with LAIF.
- City Council approved and opened a Section 115 Trust to set up a restricted fund for future payment of Pension Unfunded Liability and Other Post Employment Benefits (OPEB). This account is earning an average rate of return at 11.13% per annum. If we had kept these funds in LAIF the average yield for this same time period would have been 3.05%. The current value as of July 31, 2024, is $672,372.87 – an increase of $122,372.87 since initial deposit.
- The Finance Department successfully applied for and received Federal Emergency Management Agency (FEMA) Public Assistance for the reimbursement of expenses for the COVID-19 Pandemic and the January Storm Emergency 2023, for a total of $192,373.55.
- The Finance Department successfully applied for and received the California Water & Wastewater Arrearage Payment Program in FY21/22 and FY23/24 for a total of $286,407 – this was monies paid to the City by the State to reimburse the City for residential and commercial water and sewer accounts in delinquency during the COVID-19 pandemic. This would have created extreme hardship for residents and businesses if the City had not applied for these funds.
The City’s Finance Department has received:
- The highest possible audit rating for 12 consecutive years and received no audit findings for the eighth consecutive year;
- The Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the City Annual Comprehensive Financial Report for the last five fiscal years (Fiscal Year 2018/19 to Fiscal Year 22/23);
- The Operating Budget Excellence Award presented by California Society of Municipal Finance Officers of the Budget Book for the last five years (Fiscal Year 19/20 to Fiscal Year 23/24); and
- The Government Finance Officers Association Distinguished Budget Presentation Award of the Budget Book for the last six years (Fiscal Year 18/19 to Fiscal Year 23/24).
All of this and they are now doing more with less! City Council approved a Finance Department reorganization in 2023, eliminating the Accounting Supervisor position and replacing with an Account Clerk position. This change was recommended by the Finance Director after her thoughtful review and analysis of operations, and reduced salary costs by about $80,000 per annum.
The current fiscal situation is not due to poor financial management – it’s because we’re not getting enough revenue. Rio Vista needs economic development. In 2014, the R/UDAT report identified branding as one of the first things needed to attract prospective investors in Rio Vista. In 2023, the City’s Economic Development Strategy Plan was completed by an expert consultant and once again branding was identified as the very first goal of many to begin strategic economic development.
We know it may be difficult to support the idea of spending money (while in a deficit) on branding, but economic development is needed and if we don’t spend money on branding first, we simply cannot get there. Therefore, earlier this year, City Council approved a contract in the amount of $72,500 for Branding, Marketing, and Placemaking. This project is funded in part ($30,000) by federal American Rescue Plan Act funds identified for economic development. The rest ($42,500) from the Business Park Fund (designated by City Council to further the health, welfare, and economic vitality of the City). A brand is not just a logo – it’s a focused identity to build on, to attract businesses, to attract visitors to patronize Rio Vista businesses, to focus economic development efforts and incentives, and to generate the sustainable revenue we need to maintain infrastructure and public services.
If you’ve read this far, thank you! Please visit the City’s website, give us a call, shoot us an email, or stop by City Hall if you have any questions or want more information.
