CITRUS HEIGHTS, CA (MPG) - The Citrus Heights City Council August 13 Regular Meeting was held via Zoom to comply with social distancing guidelines. Stephanie Cotter of the Community Development Department asked the Council to consider the final phase of funding allocations for the Community Development Block Grant (CDBG) Program under the CARES Act Amendment.

The City of Citrus Heights received a one-time special allocation of $376,026 in CBDG funding in March as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The City Council already approved Phase 1 of the funding allocations: $200,750 to public services—Sunrise Christian Food Ministry emergency food closet, WEAVE domestic violence response team, Campus Life Connection Sayonara Center, and a supplemental fund for Citrus Heights Police Department’s homeless Navigator Program—and $75,205.60 for administration costs.

For Phase 2, Cotter recommended that the Council approve the following allocation of the remaining $100,072:  As part of a regional partnership between Citrus Heights, Elk Grove, and Rancho Cordova, $8,400 for Sacramento Self-Help Housing Renters Hotline to cover partial funding for temporary staff to meet the high call volume during the pandemic. The remainder, up to $91,672, would provide the 6.25% local match for the Great Plates Delivered program, provides delivery of three restaurant meals each day to qualifying seniors. Cotter explained that if Great Plates Delivered is for some reason ineligible under the terms of the funding, or if the City doesn’t need all the funds for matching, the remaining funds would be distributed to local non-profits.

The Council voted unanimously to approve the final allocation of the CBDG CARES ACT funds.

The Council heard the Second Reading of the Transactions and Use Tax (Sales Tax) Ordinance that will be submitted to voters in the upcoming election in November. The Council first approved the proposal at the July 23, 2020, meeting.

Bruce Lee, president of the Sacramento Taxpayer Association, spoke again during public comment on this item: “I truly believe this is a bad tax at a bad time for bad reasons.” Lee said that Citrus Heights has a high proportion of seniors on fixed incomes, and 12% of the Citrus Heights population lived in poverty even before the pandemic. He called it a “regressive tax,” stating that it makes CH look “heartless and uncaring.”

Tim Schaefer called in to the meeting and said he’s spoken with many constituents since the last meeting, and he hadn’t found support for a tax. Many people are out of work and struggling financially, and Schaefer said this tax would “add insult to injury.”

Nine written comments were submitted by Citrus Heights residents, all in opposition to the sales tax measure.

Councilmember Bret Daniels, the only dissenting vote on the resolution, asked that the Council consider a sunset on the tax instead of allowing it to continue unless later repealed by the voters. He also asked for clarification on the Citizens’ Oversight Committee, asking who will choose the members and how they will be chosen.  

City Manager Chris Boyd said that the City Council would appoint the committee members and would define the guidelines of membership.

Vice Mayor Steve Miller said that he has listened to the concerns that this tax will hurt the poor, but he disagreed with that assessment. He said the tax would not apply to essential items like water, groceries, baby formula, diapers, utilities, rent, or house payments: “It’s not regressive.”

Councilmember Jeannie Bruins said that the tax is an “investment in our community” because the funds will only be used in Citrus Heights.

The Council again voted 4 to 1 on the sales tax measure, with Councilmember Daniels dissenting.

The Council also considered whether to approve $35,238 for the fiscal year 2020-2021 partnership with the Greater Sacramento Area Economic Council (GSEC), an economic development organization that works to retain, attract, grow, and create sustainable business in the Sacramento Region.

Meghan Huber, the City’s economic development and communications manager, said, “Successful economies don’t just happen. They are intentional.” Huber said that GSEC helps to set that regional strategy. Huber was recently elected to serve as the vice chair of the Economic Development Directors Task Force with GSEC for this fiscal year. As the incumbent, she’ll serve as chair in the following fiscal year, with a seat of the GSEC Board. She introduced Danielle Casey, executive vice president for GSEC, who presented the Council with a Return on Investment and Service Delivery Report.

Casey said since GSEC’s inception in 2015, Citrus Heights has invested a total of $138,224. During that five-year period, Casey said GSEC has delivered the following impacts to Citrus Heights’ economy: Five-year local tax revenue of $2,368,018 (calculated with economic impact models), a return on investment at $17 to $1 on direct local tax revenue and $453 to $1 on economic output. They’ve generated 166 direct and indirect jobs, $19 million in payroll, and $62 million in total economic output. They also provide customized regional marketing impressions and meet unique research requests for the City.

Both Councilmember Bruins and Mayor Jeff Slowey commented on the value of the City’s partnership with GSEC, which is paid through the Economic Development Fund, so it does not affect the General Fund. The Council voted unanimously to approve the cost of continuing the GSEC partnership.