CLEARLAKE >> Community funded projects can bring an added measure of safety if a proposal is picked by this area’s Congressional district, Representative Mike Thompson’s (D-4) office and then approved by a subcommittee, but the proposal faced a tight deadline.
Mayor Russ Cremer put forth Resolution 2025-09 before the city council, in which Thompson could choose from for new fire safety devices. City Manager Alan Flores presented alternatives Thompson could select among an array of purchase options that benefit the city. “Every year each a Congressperson can put forward 15 community funded projects before the Congress Appropriations Committee deemed worthy of backing,” Flores explained. “The Appropriations Committe will choose the ones they like, which may or may not end up in the federal budget.”
For the last three years Clearlake already has received support for two community funded projects, both of which are for the Burns Valley Sports Complex, a little over $6 million. “But last year we were not successful receiving any funding from Rep. Thompson through this program,” Flores said adding there was a deadline to submit program proposals to Rep. Thompson. “Unfortunately, things in the Congressional legislation have been a little chaotic this year. I’m not coming with any real specific project recommendations so I have a couple of Ideas I want to share. The objective is to figure out something both Rep. Thompson likes and the Appropriations Committee. I’ve been recommended by Rep. Thompson’ s office, water-related and fire-related projects that are probably more attractive. We will adopt a resolution, get the projects submitted and I’ll spend tomorrow putting an application together.”
Cremer brought up a project they discussed the prior week and asked to be reminded of it. Flores explained it includes fire protection cameras that use AI algorithms to analyze a specific area once smoke is detected, a mechanism which includes a warning system which calls 911. But such a system is quite expensive to install, and funding is a barrier to follow through with it. Trying to focus on the water issue could prove to be more successful, such as a water storage device and the city could figure out improvements in that approach. The council had passed an ordinance last year requiring fire hydrant testing.
“Complaints we heard from water companies was a lack of resources to such testing, but we could ask Rep. Thompson to support funding,” Flores said. Cremer responded those were great ideas, he would like to see in a submittal for funding.
“I think we can ask for anything potentially affordable,” said Flores. “But we don’t have the data where to focus that request and where to work that into applications as part of the modeling for testing. Do we really need more hydrants? And which ones can we upgrade? There are a number of funding sources that already exist that could be put to the test regarding upgrades, but we need more planning.” Council Member Mary Wilson then inquired about checking water meters first, which could be a step to get another grant later for fire hydrants. Flores agreed that could be another angle to explore.
“But I don’t have a number to put on this just yet,” he said. “Hopefully you can trust me to come up with that number based on these discussions and of course I’ll share the application with council or, check in with the Mayor There’s also a potential negative to ask for all these proposals. Most of these community funded projects are for $1 million or less.”
Cremer replied that Flores had been very successful taking a lead initiative previously and that he placed his trust in him. Flores then briefly returned to the idea of a water storage project that might enjoy equal success with Thompson’s backing, yet he admitted he was unsure of the dollar amount that he would have to ask for. Resolution 2025-09 passed unanimously.
In other business, Finance Director Matt Pressey presented a midyear budget review. He began with California state figures. There was $322.3 billion projected for Fiscal Year 25/26. Budget for current year is in balance, with $16.5 billion higher, 2.7% increase over prior year. There was a $7.1 billion draw from a stabilization account. A $15.4 billion reserve balance. And $93 billion in borrowable funds, but there is a projected deficit for FY 27, FY 28 and FY 29 and the state will need to continue to address that. But, overall, the economy is strong noted Pressey. There was economic growth in 2024 and the same this year so far. Economists expect a strong GDP but a slowing of added jobs and projected growth in personal income. Currently there are elevated interest rates, expected to come down, also moderate inflation expected to taper off.
In Clearlake, the trend is modest to slight increased growth. FY 24/25. Property tax has grown higher based on medium home prices. Medium sales prices are up $23,750 or 11%. But according to the presentation, the number of homes sold is down versus last year. However, once a home is up for sale it stays on the market for 39 days, a quick turnaround versus 61 days last year. Looking at sales taxes, the second biggest revenue source, actuals are at $2,221,521 a 2.8% decrease from prior year. For FY 25/26, project a slight decrease to $2,110,000, a .5% decrease.
