MARYSVILLE, CA (MPG) - The Marysville City Council held a special meeting in June to review the proposed budget for Fiscal Year 2025-2026, presented by Finance Director Anissa Leung. 

General Fund revenues are projected to be $22,987,644, with the largest sources being property and sales taxes at $11.3 million and grants at $7.7 million. Other sources of revenue include licenses, permits, fees and charges for services. 

General Fund expenditures are expected at $22,924,95, with salaries and benefits as the largest expense at $8.3 million. Most of that total (84%) is to cover services of police, fire and public works. Other major expenses include operations and maintenance at $2.8 million and capital improvement projects at $7.5 million. 

Leung said that costs for health, liability, property and auto insurance have been increasing year over year, causing increased expenses across each department. 

There are three current vacancies in the police department, which also requested two new positions: a patrol officer and a community service officer. The annual combined cost for the new positions would be $215,000. The police department also requested funding to cover ballistics vests and professional development. Leung said the proposed expenses for the police department have increased 6.85% from the prior year. 

In the fire department, there is currently one vacancy. That department has a 5.6% increase from last year, due in part to the new contract for dispatch services through the Yuba County Sheriff’s Office. 

Other staffing recommendations included hiring a fleet management mechanic at a $120,000 annual salary. The new position is expected to save the city money over time on vehicle maintenance costs across the police, fire and public works departments. 

Leung said the proposed budget accounts for the full funding of all staff vacancies in all departments, so it is “a true representation of how much it costs to run the city at full capacity.”

Mayor Chris Branscum said that during prior small-group meetings to review the budget, “The public works director was not fully funded. … This is a surprise.”

Leung attempted to respond but Branscum spoke over her and addressed City Manager Jim Schaad: “Why do we have these meetings and we’re assured in these meetings that we’re looking at numbers that are real… and now I see that the public works director is fully funded?”

City Manager Schaad said, “I believe what our finance director was trying to communicate is that the public works director is not funded fully by the General Fund, and it is funded by both the street fund and the sewer enterprise fund, partially. But it is funded in its entirety.” 

Branscum said, “Then I was misled and I am very unhappy with the process. That was something you could have shared. We had a direct conversation about the public works director, and if it’s going to be coming in through another angle, that is something you should have been upfront about.”

Schaad said, “I believe the question you asked me, mayor, was to consider whether I wanted to fund a public works director and I gave you my opinion on that.” 

Branscum asked for a list of all new positions proposed in the budget and Leung said there were five new positions: patrol officer, community services officer, building inspector, mechanic and a shift from part-time to full-time for an administrative support position. 

Leung said there are some existing grant funding that will offset General Fund expenditures but “federal policies will affect future availably and opportunities for grant funds.” 

“The market volatility will dictate our revenues as this fiscal year goes forward, so our revenues are dependent on many factors but especially sales tax, use tax, things of that nature,” said Leung.

Additionally, Leung said, insurance costs are increasing approximately 20 to 30% each year, which will impact the city’s budget. 

Councilmember Brad Hudson asked about a possible downturn in sales tax revenue.

While sales taxes across the state are declining at around two to three %, Leung said,“Marysville is pretty healthy in terms of sales tax revenue.” She said from the first quarter of 2024 to the first quarter of 2025, Marysville saw a 15% increase in sales taxes. 

Branscum brought the discussion back to the funding for a public works director, saying, “I consider this a major breach of trust.” He added that sales tax revenues are a “big question mark,” so fully funding all positions while adding five new positions “is irresponsible…and I will not vote to support this budget because of that. I think it needs another look for very good reasons.”

Vice-Mayor Bruce Buttacavoli said that in the budget meetings he attended with Councilmember Hudson, “everything was shown as funded. … We supported funding all the positions.” 

Councilmember Marjorie Rollins was in the smaller group meetings with Branscum, and regarding the public works director, she said, “As I recall, we discussed it and said no, we weren’t in favor of going that way.”

Branscum said they recommended seeing how the city manages without a public works director for now, in case the financial situation takes a downturn during the fiscal year. 

Councilmember Hudson pointed out that the city is already conducting interviews for a public works director. He added that the city currently has healthy levels of reserves, so the budget is appropriate.

“I like what was presented, and I’m willing to go forward with this,” Hudson said

Councilmember Stuart Gilchrist said he wanted a budget that would fully fund the positions required to run the city.

“I didn’t realize that the budget process is when we make decisions…to not have a public works director while we’re interviewing for one,” Gilchrist said.

Gilchrist said it was “surprising” and he suggested the mayor’s issue was perhaps a misunderstanding in semantics. 

Branscum disagreed that it was a misunderstanding and said that the public works director funding was added “by hook and by crook.” 

Hudson moved approval of the budget and it was seconded by Gilchrist. The motion passed 3-2 with Rollins and Branscum dissenting.