GOOD MORNING. TODAY'S A REGULAR MEETING OF THE AIR POLLUTION CONTROL BOARD.
[CALL TO ORDER]
[00:00:05]
IT IS TUESDAY, JUNE 24TH. THE TIME IS 8:31AM WE ENCOURAGE THOSE WHO WISH TO PARTICIPATE IN PUBLIC COMMENT.PLEASE FILL OUT A SPEAKER REQUEST CARD AND SUBMIT IT TO THE CLERK'S TABLE SET UP IN THE FOYER WITH MRS. SMITH. DON'T SEE ANYONE OUT THERE. SPEAKER REQUEST CARDS MUST BE SUBMITTED TO THE CLERK BEFORE PUBLIC COMMENT FOR EACH REGULAR CALENDAR ITEM BEGINS WITH THAT, OUR FIRST ORDER OF BUSINESS IS PUBLIC COMMENT OPEN TIME.
SO I'LL TURN THINGS OVER TO THE CLERK OF THE BOARD TO SEE IF WE HAVE ANY REQUESTS TO SPEAK.
MISS BLANKENSHIP OR MARCY OR MIRANDA. WE DO NOT HAVE ANY SPEAKERS CURRENTLY.
CHAIR. FANTASTIC, SO TO SPEAK. ALL RIGHT. FIRST ITEM UP.
[R1 Receive a presentation from the Air Pollution Control Officer regarding the utilization of Assembly Bill 2766 Motor Vehicle Funds]
WE HAVE OUR ONE. MR. EWING, ARE YOU DOING THAT OR IS MR. STAHL OKAY? THIS IS A NO VOTE ITEM. WELCOME. THANK YOU.GOOD MORNING, CHAIR CRYE AND MEMBERS OF THE AIR POLLUTION CONTROL BOARD.
SEAN EWING, AIR POLLUTION CONTROL OFFICER. WE'RE HERE WITH THIS ITEM TO PROVIDE SOME CLOSURE TO THE PREVIOUS CONCERNS THAT WERE BROUGHT BEFORE YOU DURING THE APRIL 22ND, 2025 PRESENTATION REGARDING THE NEGATIVE FUND BALANCE IN THE AIR QUALITY MANAGEMENT DISTRICT'S GENERAL PURPOSE RESTRICTED FUND.
AS PART OF THAT PRESENTATION, IT WAS EXPLAINED THAT THE NEGATIVE FUND BALANCE AT THE CLOSEOUT OF FISCAL YEAR 23-24 WAS APPROXIMATELY 1.8 MILLION THAT HAD ACCUMULATED OVER TEN YEARS PRIOR, AND THE RESTRICTED AB 2766 FUND BALANCE WAS APPROXIMATELY 1.9 MILLION.
WORST CASE SCENARIO OF ASSESSING MEMBER JURISDICTIONS FOR THE PRIOR YEAR'S NEGATIVE FUND BALANCE HAS BEEN DISCUSSED, BUT IT IS CONTINUALLY BEEN OUR HOPE THAT MORE OF THE RESTRICTED AB 2766 FUNDS COULD HAVE BEEN USED THROUGHOUT EACH OF THOSE PRIOR FISCAL YEARS.
AB 2766 FUND BALANCE, BUT AVOIDS THE DIFFICULT TASK OF ASSESSING MEMBER JURISDICTIONS.
SO LONG AFTER THE CLOSEOUT OF THOSE FISCAL YEARS WHERE A NEGATIVE FUND BALANCE HAD OCCURRED BEFORE A DEFINITIVE DECISION COULD BE MADE, A THOROUGH REVIEW OF HOW THE AB 2766 MOTOR VEHICLE SURCHARGE FUNDS COULD BE USED WAS NEEDED, FOLLOWED BY A THOROUGH REVIEW OF HOW THE DISTRICT APPLIED THEIR TIME ACCOUNTING TOWARDS THE USE OF THESE FUNDS.
AB 2766 WAS ADOPTED IN 1990 AND AUTHORIZED AIR DISTRICTS TO IMPOSE A VEHICULAR SURCHARGE ON MOTOR VEHICLE REGISTRATIONS REGISTERED WITHIN THE AIR DISTRICT, WHICH WAS TO BE USED FOR RELATED PLANNING, MONITORING, ENFORCEMENT, AND TECHNICAL STUDIES NECESSARY FOR THE IMPLEMENTATION OF THE CALIFORNIA CLEAN AIR ACT OF 1988. IN ADDITION, IN 2015, SB 513 WAS ADOPTED THAT AUTHORIZED THE MOTOR VEHICLE SURCHARGE TO BE INCREASED, AS WELL AS AUTHORIZE THESE FUNDS TO BE USED FOR THE ATTAINMENT OR MAINTENANCE OF STATE OR FEDERAL AMBIENT AIR QUALITY STANDARDS.
THE RESEARCH COMPLETED SUFFICIENTLY DEMONSTRATES HOW THE DISTRICT COULD HAVE BEEN UTILIZING MORE OF THESE FUNDS, WITH THE REVIEW OF THE DISTRICT'S TIME ACCOUNTING FOR THE UTILIZATION OF THE AB 2766 FUNDS FOR THIS PERIOD OF TIME, IT HAS BEEN CONFIRMED THAT THE DISTRICT HAS BEEN UNDERREPORTING FOR THE USE OF THESE FUNDS.
DISTRICT STAFF TIME ACCOUNTED TO A TIME ACCOUNT TO A MULTITUDE OF ACTIVITIES THROUGHOUT THEIR DAY.
ONE OF THE TIME ACCOUNTING CODES IS AB 2766. HOWEVER, THIS CODE DOES NOT DIRECTLY CORRELATE TO WHAT TIME CAN ONLY BE REIMBURSED BY AB 2766 FUNDS. THERE ARE SEVERAL OTHER TIME ACCOUNTING CODES THAT SHOULD HAVE BEEN APPLIED TOWARDS THE USE OF THESE FUNDS THAT HAVE NOT BEEN ACCOUNTED FOR IN YEARS PAST.
IT'S NOT KNOWN TO ME WHY THIS IS NOT WHY THIS HAS NOT BEEN REVIEWED OR DISCUSSED IN THE PAST, BUT IT'S VERY CLEAR THAT MULTIPLE TIME ACCOUNTING ACTIVITY CODES SHOULD HAVE BEEN FUNDED UNDER AB 2766 WITH THE COMPLETION OF THIS REVIEW.
DISTRICT STAFF WILL BE APPLYING ADDITIONAL TIME ACCOUNTING AS ALLOWED UNDER HEALTH AND SAFETY CODE SECTION 44225 TO INCREASE THE UTILIZATION OF THE AB 2766 CARRYOVER FUNDS AS REQUIRED TO OFFSET THE NEGATIVE FUND BALANCE FOR EACH OF THE PRIOR FISCAL YEARS.
ANY REMAINING. AB 2766 CARRYOVER FUNDS WILL BE USED IN FUTURE FISCAL YEARS TO OFFSET DISTRICT EXPENDITURES AND TO LIMIT ASSESSMENTS TO THE CITY OF REDDING AND THE COUNTY UNTIL THESE CARRYOVER FUNDS ARE FULLY EXPENDED.
26 HAS DOCUMENTED THE ANTICIPATED ASSESSMENTS THAT WILL BE MADE AT THE CLOSEOUT OF THAT FISCAL YEAR.
[00:05:04]
I TRUST THIS SUFFICIENTLY CLARIFIES THE SITUATION ON HOW THE DISTRICT STAFF WILL BE MOVING FORWARD TO REMEDY THE NEGATIVE FUND BALANCE.AND I'M HAPPY TO ANSWER ANY QUESTIONS. MEMBER MUNNS.
SO I'M ASSUMING THAT WE'VE COLLECTED SOME OF THE FEES, BUT NOT ALL OF THE FEES.
IS THAT WHAT YOU'RE SAYING? SO. WHEN WE COLLECT THE WHEN WE BMV FUNDS WE'RE COLLECTING SOME OF THEM. BUT NOT ALL OF THEM ARE. WE'RE COLLECTING.
WE'RE COLLECTING $3 PER VEHICLE EACH YEAR SINCE, YOU KNOW, SINCE THAT WAS PASSED.
ANYTHING THAT WE DON'T TIME ACCOUNT TO ON AN ANNUAL BASIS, THAT GOES INTO A RESTRICTED FUND THAT WE HAVE TO WE HAVE TO LIMIT IT FOR THOSE SPECIFIC PURPOSES AND SO WHAT WE'VE DONE IS WE'VE REVIEWED THE TIME ACCOUNTING OVER THESE PAST TEN YEARS AND, CURRENT YEARS TO SEE WHETHER OR NOT WE SHOULD HAVE BEEN UTILIZING MORE.
DO WE CHARGE, BESIDES THE DMV $3 FEE WE HAVE PERMITTING DEVICE PERMITTING FEES.
HOW MUCH DO WE COLLECT FOR THAT? I BELIEVE THE REVENUE AROUND 200.
I BELIEVE IT'S AROUND 200,000. OKAY. AND WE CAN ONLY RAISE THESE UP THAT $3, THAT 15% PER YEAR.
SO THE DEVICE PERMITTING FEES ARE LIMITED TO A 15% INCREASE EACH FISCAL OR CALENDAR YEAR, ACTUALLY.
AND SO AT THE LAST AIR POLLUTION CONTROL BOARD MEETING, WE BROUGHT FORTH A FEE INCREASE FOR THIS CALENDAR YEAR AND THEN WE'LL THERE WILL BE AN ADDITIONAL FEE INCREASE IN JANUARY OF 2026. SO THEN THE SO AB 2766 MOTOR VEHICLE FEES.
SO THE 100 AND WHAT IS IT, 78,000. DO YOU WANT TO COLLECT FROM THE CITY? IS THAT INCLUDED THE 24-25 THAT YOU JUST TOLD ME ABOUT, OR IS THAT SEPARATE? SO THE ASSESSMENT FOR THE CURRENT FISCAL YEAR THAT, WE'RE ABOUT TO CLOSE OUT 60 SOME THOUSAND.
YEAH, THAT'S ABOUT $63,000 IS WHAT THE SEPARATE FROM THE 178 WE TALKED ABOUT.
YES. THAT'S CORRECT AND THEN FOR THE SORRY LET ME FIND IT.
AND THEN FOR THE PROPOSED BUDGET FOR 25, 26 THE ASSESSMENT TO THE ANTICIPATED ASSESSMENT TO THE CITY IS $173,000. SO IN TOTAL, WE'RE TALKING 400 GRAND PLUS.
YEAH. THAT'S CORRECT. YEAH. ALL RIGHT. THANK YOU.
ANY OTHER QUESTIONS FOR MR. EWING? OH, SORRY.
MIKE. GO AHEAD. MEMBER LITTAU. MAYBE THESE ARE MORE BUDGET QUESTIONS, BUT CITY OF RATINGS PERSPECTIVE IS WE'D LIKE TO RUN NEUTRAL OR NET NEUTRAL. OF COURSE, ALL THIS MONEY THAT WOULD BE ASSESSED TO US COULD COST US AN OFFICER EACH YEAR.
YEAH. OF COURSE. DO WE HAVE ANY ABILITY TO CONTINUE TO RAISE FEES OVER TIME, BUT TO BORROW OR TO RUN IN A DEFICIT WITH THE EXPECTATION THAT WE CAN WE CAN PAY THIS BACK TO AVOID ANY SORT OF ASSESSMENTS, BECAUSE EVEN AS WE INCREASE FEES OVER THE NEXT TWO, 4 OR 6 YEARS WE WOULDN'T BE ABLE TO REIMBURSE THE CITY ALREADY FOR SUCH ASSESSMENT. SO DO WE HAVE ANY OTHER AVENUES TO BORROW TO RUN A DEFICIT, TO DO SOMETHING IN FUTURE YEARS TO OFFSET THIS? I DON'T BELIEVE SO. BECAUSE IF WE'RE NOT ABLE TO COVER COSTS NOW AND THEN WE TAKE A LOAN, WE WON'T HAVE THE ABILITY TO REPAY A LOAN, AND WE WON'T BE ABLE TO RAISE OUR FEES FAST ENOUGH TO BE ABLE TO PREVENT AND PREVENT AN ASSESSMENT AND TO PAY BACK ANY LOAN. GOOD. MEMBER LONG. THANK YOU. CHAIR.
THANK YOU. SEAN. CAN YOU TALK A LITTLE BIT TO MIKE'S QUESTION ABOUT WHAT THE PROGRESS IS AND THE STATUS IS OF TRYING TO APPLY THOSE RESTRICTED FUNDS THAT WE HAVE NOT APPLIED IN YEARS GONE BY TO THE DEFICIT WE'VE FACED AND WHAT THE STATUS OF THAT IS AND HOW CLOSE ARE WE TO THAT? AND WHAT KIND OF MAGNITUDE WOULD THAT BE. BECAUSE THAT WILL REDUCE MEMBER CONTRIBUTIONS.
[00:10:05]
SO ESSENTIALLY WHAT THE DISTRICT HAS DONE OVER THE PAST 20 OR 30 YEARS IS THEY'VE UTILIZED ALL OF THEIR GENERAL PURPOSE RESTRICTED FUNDS AND DEPLETED THOSE. AND THEN THEY'VE BEEN BORROWING AGAINST AB 2766 FUNDS.THE REASON I SAY BORROWING IS BECAUSE THEY WEREN'T PROPERLY TIME ACCOUNTING.
AND SO NOW THAT WE'VE GONE BACK AND WE'RE PROVIDING THE TIME ACCOUNTING TO JUSTIFY MORE USE OF THOSE FUNDS, WE'RE ESSENTIALLY DRAWING THAT ACCOUNT DOWN TO WE'RE DEPLETING THAT AND SO WHERE WE'RE AT NOW IS MOVING FORWARD, WE WILL WE ARE IN A POSITION WHERE WE HAVE TO ASSESS THE MEMBER JURISDICTIONS.
THE THINGS THAT WE'RE DOING TO TRY TO LIMIT THOSE ASSESSMENTS, OR WE'VE INCREASED OUR FEES AND WILL CONTINUE TO EVALUATE OUR FEES TO MAKE SURE THAT THEY'RE IN A COST RECOVERY STATE AND THEN ALSO LOOK AT THE DMV MOTOR VEHICLE SURCHARGE.
RIGHT. SO ARE WE AT A STANDSTILL OF GETTING THOSE APPLIED TO REDUCED MEMBER CONTRIBUTIONS GOING FORWARD? BY RESOLVING THE NEGATIVE FUND BALANCE OVER THE PAST TEN YEARS, WE'RE ESSENTIALLY TAKING THOSE TO NEARLY ZERO.
SO WE'LL CONTINUE TO UTILIZE THOSE FUNDS UNTIL THE LAST UNTIL THE LAST OF THEM ARE USED.
SO IF WE'VE ALREADY APPLIED THOSE RESTRICTED FUNDS TO OFFSET SOME OF THE DEFICITS THAT'S ONE THING.
THAT WAS 1,000,008. WHERE ARE WE DOWN TO WITH NOW? I DON'T HAVE THE EXACT NUMBERS, BUT BASICALLY AT THE CLOSEOUT OF FISCAL YEAR 23-24 THE NEGATIVE FUND BALANCE WAS ABOUT 1.8.
AND THE NEGATIVE OR THE FUND BALANCE OF AB 2766 WAS 1.9.
SO WE'RE BASICALLY WASHING THAT OUT. WE'RE WASHING OUT THAT NEGATIVE FUND BALANCE AND OUR AB 2766 CARRYOVER FUNDS ARE NOT GOING TO ACCUMULATE OR ACCRUE BECAUSE WE ARE EXPENDING THOSE AS WE RECEIVE THEM.
SO WE KIND OF CAUGHT UP IN A WE'RE CAUGHT UP AND THIS IS OUR OPPORTUNITY TO NOW OUR OPPORTUNITY TO INCREASE REVENUE, TO MATCH EXPENDITURES SO THAT WE DON'T FALL INTO THIS TRAP AGAIN.
PERFECT. THANK YOU. YOU ACTUALLY ASKED ALAN ALL MY STUFF, SO I JUST YOU KNOW HOW I FEEL, SEAN.
I'M ALWAYS GOING TO ON THE SIDE OF I DON'T WANT TO RAISE.
I KNOW. THE FEES TO PEOPLE AT ALL. SO IF WE HAVE TO DO A LEMONADE STAND.
BUT YOU KNOW. ALL RIGHT. ANY OTHER QUESTIONS FOR MR. EWING ON OUR ONE? ALL RIGHT. MOVING ON TO. YES? NEVER MIND. MY APOLOGIES. I THOUGHT THAT WAS A VIABLE ITEM. THAT'S OKAY. THERE'S THREE OF YOU THERE. YOU GUYS WILL CATCH UP. ALL RIGHT, WE'RE ON R2. AND, YOU KNOW, [INAUDIBLE]. IT FEELS SO GOOD.
[R2 Adopt the recommended Fiscal Year 2025-26 Shasta County Air Quality Management District Budget.]
BUT OF COURSE, THERE'S NOBODY BUT A COUPLE PEOPLE HERE TO WITNESS THAT. WHY CAN'T THAT HAPPEN WHEN THIS PLACE IS PACKED? SO.ALL RIGHT, ARE TWO. IS THAT MISS BURTON, OR IS THAT MR. EWING OR MR. EWING? WELCOME BACK. THANKS. ALL RIGHT.
CHAIR CRYE. MEMBERS OF THE AIR POLLUTION CONTROL BOARD, SEAN EWING.
AIR POLLUTION CONTROL OFFICER. WE'RE HERE WITH THIS ITEM TO RECOMMEND THE ADOPTION OF THE AIR QUALITY MANAGEMENT DISTRICT RECOMMENDED BUDGET FOR FISCAL YEAR 25-26 AS IT WAS PRESENTED ON JUNE 9TH, 2025 TO THE PUBLIC, WHERE NO CHANGES WERE WERE MADE.
I CAN ANSWER ANY QUESTIONS THERE MIGHT BE. ARE THERE ANY QUESTIONS? IF NOT, I'LL ENTERTAIN A MOTION. COUNCIL MEMBER LITTAU.
YOU KNOW, THAT'S WHAT I REPRESENT. IS THIS ITSELF? BUT OF COURSE, VOTING TO APPROVE THIS IT DOESN'T MEAN THE CITY IS ACCEPTING THE ASSESSMENT AT THIS POINT.
THAT NEEDS TO COME BACK TO OUR COUNCIL, OUR CITY MANAGER REVIEW.
WE JUST BALANCED OUR BUDGET AFTER A TOUGH BUDGET MEETINGS AND A DEFICIT TO OVERCOME THERE.
BUT IT'S A LOT OF MONEY THERE. BUT IT'S GOING TO COME BACK TO DISCUSSION.
SO I JUST WANT TO MAKE IT REALLY CLEAR THE VOTE IS NOT ACCEPTING THE RESPONSIBILITY OF THAT ASSESSMENT FOR THE CITY ALREADY, BUT IT'S MY VOTES REPRESENTING THE AIR POLLUTION BOARD AND UNDERSTANDING THE ABILITY TO PROTECT THE AIR POLLUTION BOARD AND GIVES BACK TO [INAUDIBLE] AND DO THE BEST THING WE CAN FOR THIS.
IS THAT A MOTION TO APPROVE? I'LL MOTION TO APPROVE.
ALL RIGHT. WE HAVE A MOTION. I'LL SECOND. WE HAVE A SECOND BY MEMBER MUNNS.
ANY OTHER BOARD DISCUSSION? IS THERE ANY PUBLIC COMMENT ON THIS ITEM, MISS BLANKENSHIP? MIRANDA,
[00:15:04]
THERE ARE NO COMMENTERS. PERFECT. OKAY, ALL THOSE IN FAVOR, SAY AYE? PASSES FOUR ZERO WITH MEMBER HARMON ABSENT. WITH THAT, I SEE NOTHING ELSE.IS THERE ANYTHING ELSE, MISS ANGEL? THERE IS NOT, CHAIR.
ALL RIGHT. THANK YOU. WITH THAT, WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.