San Juan High School boys’ varsity basketball team is recognized in their first league championship since 2012

CITRUS HEIGHTS, CA (MPG) - At the March 24 meeting, the Citrus Heights City Council issued a proclamation recognizing the accomplishments of the San Juan High School boys’ varsity basketball team after winning their first league championship since 2012. Councilmember Bret Daniels said, “I know this was an emotional win for all of you with the recent passing of fellow teammate Devin Johnson. I really want to commend the team for their outstanding team spirit and support for one another, which led to this tremendous win.”

Head Coach Freddie Bryant said, “This is a special class, especially for me,” as he announced it would be his last season coaching at San Juan after eight years. He thanked the students for their hard work and the families for their support.

The Council also recognized March as Women’s History Month, and Councilmember Jeannie Bruins read the proclamation, stating that generations of women have been leaders in fighting for a “more just society for all,” knowing that “their gender was no obstacle to what they could accomplish.”

“Despite their contributions, the role of women in history has been overlooked and undervalued …. So, this month we want to honor the pioneering women and their victories,” said Bruins. Members of Citrus Heights Soroptimists and the Citrus Heights Women’s Club accepted the proclamation in honor of their work in the community. 

During councilmember comments, Councilmember Steve Miller said that many in the community want to do something to help during the “tragic” situation in Ukraine. One option is to donate to an upcoming protective gear drive for Ukrainian citizens, which will be held on Saturday, April 16 from 11:00 AM to 3:00 PM at the Sunrise Marketplace at Birdcage. Requested items are tourniquets, bandages, combat gauze, decompression needles, burn and sterile bandages, medical tape and dressings, tactical clothing and boots, flashlights, sleeping bags, etc. These items are not for the Ukrainian military, but for civilians who are in danger during the ongoing conflict. Donations will be shipped to Poland and then moved across the border to those in need in Ukraine.

The Council held a public hearing on a proposed amendment to the City’s business license ordinance to include short-term rentals (STRs), like those marketed on Air BnB and other websites, which offer stays of less than 30 days. Back in 2011, there were around five STRs advertised in the city; now there are 70.  The addresses of 52 of these rentals have been identified. Over the last two years, the Citrus Heights Police Department responded to calls for service at 13 of those addresses—with five having more than three calls, and one having 11 calls. As the number of STRs increases, there is the potential for more problems at these locations. Requiring business licenses could give the City some measure of control over the issue, since the owner/operator will have to provide contact information, and the City can revoke the license if an address is a persistent problem. Most of the calls for service involve noise complaints due to loud parties, so the amendment seeks to address that with a limit on overnight guests at the rentals.

Currently, the City does not have any ordinances in place to regulate these rentals and the owners are not paying the required 12% Transient Occupancy Tax (TOT) that owners of hotels and motels already pay. With the number of STRs operating in Citrus Heights, TOT revenue could total $43,000 per year. The business license fees themselves would have a minimal financial impact and would cover the associated administrative time.

Owners of the addresses have been mailed two direct letters informing them of the public hearing, but at the time of the meeting, no comments had been submitted.  If approved, the ordinance would go into effect in May and notifications of the new requirements would be sent out.

Vice Mayor Tim Schaefer expressed concern that the regulations wouldn’t include any mandatory inspection process to ensure the rentals met safety requirements. He wondered if the City could be liable if someone was injured or killed at an unsafe location licensed by the City. City Attorney Ryan Jones said the liability risk is low, and City Manager Ashley Feeney said the City could require the owners to attest that their rental complies with all safety regulations.

Schaefer also said, “Now we’re taking these homes and essentially displacing what could be affordable housing into a short-term rental opportunity.” He worried that an investment company could buy up a bunch of homes to use as STRs, which would mean less long-term rentals available for people in the community.

Councilmember Bret Daniels said he didn’t think the calls for service at those addresses were evidence of a significant problem that required a government solution. He asked, “Are we opening a box that doesn’t need to be opened?”   

Councilmember Steve Miller argued that it is enough of a problem that the City should address it before it gets out of hand. And he asked why the taxpayers of Citrus Heights should subsidize those businesses. Since hotel owners have to obtain a business license and pay TOT, the requirements should be applied fairly to all businesses in that market.

Councilmember Jeannie Bruins agreed: “These people are running a business; they’re making an income off of it” and should have a business license just like any other business.

The motion passed 4-1 with Councilmember Daniels dissenting.

The Council also considered whether to move ahead with early repayment of the City’s $12 million revolving line of credit. It was taken out in November 2018 to cover operating costs during the projected budget shortfall before the end of revenue neutrality, when the City will begin receiving property taxes. The City has utilized $3.5 million of the funding, most of which was used to purchase the Sylvan Middle School property. But the City doesn’t expect to utilize the line of credit for any further funding after ending the last fiscal year with a $3.6 million operating surplus and projecting another surplus this year.

Interim Administrative Services Director Bill Zenoni explained that the terms require full repayment by September 2024, but an early repayment is allowed without penalty starting last March. The City pays interest on the funds utilized from the line of credit, and the current interest payment is $13,200 per month. Repaying the full debt now would avoid future interest costs, amounting to $110,000 in general fund savings.

The City Council voted unanimously and enthusiastically to amend the current budget to allow for immediate repayment of the borrowed funds.