Antioch Council learns homeless hotel program runs out of money April 30

A complete Antioch Council met for the first time since Dec. 10th for a Budget Workshop Monday night Jan. 27, 2025. Video screenshot

Discusses final 6 months of 2-year budget ending this June

Agrees to eliminate council slush funds of $20K each

Without new source of funding Crisis Response Team to end Oct. 31

By Allen D. Payton

Without any public comments, Antioch City Finance Director Dawn Merchant delved right into her report to the Antioch City Council during their meeting on the budget study session held Monday, January 27, 2025. She called it, “A high-level overview for closing the books for 2024-25.” The council learned Opportunity Village, referred to as the homeless hotel on E. 18th Street will run out of funds to operate as of April 30th, as will the City’s crisis response team as of Oct. 31st and chose to eliminate the $20,000 per member slush fund the previous council majority approved.

“The numbers presented this evening are subject to change,” she added. “Department heads are already developing their budgets for Fiscal Years 2025-27” two-year budget which begins July 1, 2025.

It was the first meeting of the entire five-member council since the oath of office meeting on Dec. 10th.

Following her presentation, which was written in the staff report for the agenda, the council asked a variety of questions. Mayor Ron Bernal chose to review the staff report page by page.

Reserve Funds, Make Budget Easier to Understand

“This is a preview of future attractions, so to speak,” District 3 Councilman Don Freitas said. He then asked about the City’s two reserve funds saying “Are they the same? Why aren’t they combined?”

“Because when this was established in 2018, we had an accumulation of fund balance from staff vacancies. City Council wanted to set aside the funds in a separate funds so it didn’t appear we had all these funds to spend on ongoing expenditures…and so we would have a safety net,” Merchant said.

“The public and members of the council get very confused with the transfers-in and transfers-out,” the councilman said. “I think we should combine the reserve funds. I want someone in high school to be able to look at the budget and understand it.”

“I would like to look at possibly establishing a policy on how set-aside funds can be utilized in the future,” Bernal added.

“I agree,” Freitas responded. He also wanted to see a reserve in the CIP (Capital Improvement Program) budget.

“Making this as easy as possible for folks to understand,” Bernal stated about his desires for the budget document.

Investment Funds and Policies

Freitas then asked about the investment policies and “million decreases in building activities. That’s a red flag to me.”

“The County will have to re-examine the Urban Limit Line,” he continued. “There might be an interest in the County in limiting more growth in the cities. That could have a dramatic impact.”

“If we had all those vacant positions filled, would we have any money in the budget?” Freitas then asked. Merchant laughed. “There’s a lot of income there. City Council needs to take a realistic view…not have positions approved that have not been filled for two or three years.”

“We’re looking at all of that…the length they’ve been vacant and why,” Merchant responded.

“On that note with the vacancies what’s the timeline to fill those vacancies? One year or two years?” asked District 2 Councilman Louie Rocha.

“Instead of guessing we can get those actuals,” Merchant said. “The department heads are looking at that and preparing it. So, we can’t answer that, tonight.”

Asking about the investment funds, District 4 Councilwoman Monica Wilson asked if the investments can be changed mid-year.

“City investments are governed by the government code. Funds are supposed to be safe guarded,” Merchant stated. “The City is on a two-to-three-year benchmark. If we have excess funds…we will transfer those funds to the custodian…then to PFM” who handles the City’s investments.”

“We can go out to another investment firm, but they would be governed by the same code,” Merchant responded.

“Over a 20-year term? I’ll be making a recommendation,” Freitas said.

“It seems like our investments went from $1.1 to $2.7 million last year,” Bernal pointed out.

“The interest rates were really high for a while,” Merchant stated.

“It would probably be good to come back with a single study and go over all of how that works,” Bernal said.

Freitas suggested top staff have a meeting on a quarterly basis, to review the City’s investments.

Source: City of Antioch

Request Corrected Budget Figures

“We have a $95 million base not a $100 million base when we take out all the ARPA money,” Bernal stated.

“When the budget comes back and we’re going into ’26 an ’27 the budget will show what we’re expecting then…and have the one-time funds broken out,” Merchant explained.

“I think what we’re talking about is transparency, showing $95 million instead of $100 million,” Rocha stated.

Transfers In

Freitas asked about the 10% for Transfers In saying, “Is that normal?”

“It was a little bit higher in 2024-25 because of the ARPA funds and the Bicycle Garden,” Merchant shared.

Source: City of Antioch

Sales Tax Versus Property Tax Amounts

“I think it would be interesting…to understand the various categories of sales tax,” Freitas said. “It’s a lump sum and it doesn’t give us the ability to make any policy decisions going forward.”

“If property taxes are the largest revenue, what are we doing as a City to improve property values?” he asked.

However, Sales Tax including the City’s 1% sales tax generates 49% of taxes to the General Fund, while Property Tax generates 36% of taxes.

Wilson spoke of the Transient Occupation Tax, the 10% tax on hotel and motel bookings. “Not all our operators pay when they’re supposed to,” she stated. “I think that’s something council should take a serious look at.”

Freitas asked about when Measure W’s one-cent sales tax ends. “20 years…in 2037,” Merchant said.

“It was going to be 80-10-10 but we had to fight to get 20 for youth,” Wilson said about the split of the use of revenue from Measure W.

“Under investment income and rentals…do you have an idea what that’s going to look like over the next several years,” Bernal asked.

“I’m going to look at that,” Merchant responded.

Legal Costs Questioned

Referring to the $1.3M increase in outside legal costs for several on-going litigations mentioned in the staff report, Freitas requested, “I’d like to know how much we’ve spent last year and this year on outside legal counsel and per firm.”

City Hall & Marina Parking Lots

Regarding City Hall, “is the parking lot sinking and are the trees being removed?” Freitas asked. “If there’s a problem with the parking lot, which brings in the issue of the marina parking lot.”

“Yes, the marina parking lot does move,” Acting Public Works Director Scott Buenting said. “It’s because of the underlying issue of the Bay mud. We try to eliminate the ponding as much as possible.”

“The eucalyptus trees are being removed. We are installing some EV charging stations,” he added. “It’s not moving like an earthquake. It’s moving slowly.”

“If there was an earthquake, I guess it’s called liquefaction. What would be the worst-case scenario?” Freitas asked.

“There’d be no liquefaction there, as the parking lot is on bay mud,” Buenting responded.

Lone Tree Golf Course Funds

Regarding questions on the funds for the Lone Tree Golf Course, Merchant said, “The golf course agreement that’s been in place for several years, now, that they pay us about $20,000 per year and they pay for the rest.”

Wilson said, “Mr. Mayor I want to remind you that you and I sit on the golf course committee.”

On the Transfer Out Bernal said, “these seem to be increasing each year.”

Source: City of Antioch

Unfunded Liabilities

About “unfunded liabilities of $166 million that seems like a lot of money” the mayor stated.

“So, the total costs that we’re paying toward this black hole is about $20 million per year?” he asked. “It’s more than 20% of our revenues. So, it’s a huge cost to the citizens of Antioch.”

“That’s just in the General Fund. There’s also an amount in the Water Fund,” Merchant stated. “They take our overall liability and subtract the value of assets”

“This is $167 million exposure…I think we need to come back and revisit this. It’s like a credit card and only paying interest,” Freitas stated.

“We are paying part of the unfunded liability,” Merchant said.

“I think we should be paying it,” Freitas responded.

“Then you’d have to decide what you don’t want to pay for in the General Fund,” Merchant responded.

Crisis Response Team May End Oct. 31

“Under ARPA…we spent $5.7 million…for the crisis response team,” Freitas pointed out. “This was ARPA money…one-time money. Has there been any discussion if this is going to continue how we’re going to come up with $6 millon?”

“No. Not at the council level,” Merchant said.

“That’s not true. It has always been stated it won’t be covered by the General Fund because it’s not sustainable,” District 1 Councilwoman Tamisha Torres-Walker stated. “That’s why we need to start looking at state and federal funds.”

“As for the…crisis response team and Mayor’s Apprenticeship Program, there are grant funds out there…to keep funding those programs,” she added.

“So, by Oct. 31…is the crisis response team ending?” Freitas asked.

“In our discussions with the county are you looking at a strategy…and look at collaborating with the County and our neighboring cities?” Rocha asked.

“This has helped…reduce police calls for service,” Torres-Walker argued.

“I think having a crisis response team is good,” Freitas stated. “It’s the ability to finance it.”

“Thank you for acknowledging the work that does need to happen,” said Public Safety and Community Resources Department Director Tasha Johnson. “There are some possible grant funding opportunities. We do have some funds in our budget for a grant writer.”

“The community response team has done tremendous work in the community,” she continued. “They help with our unhoused residents. We are looking to sustain that with outside funding.”

Opportunity Village Homeless Hotel to Run Out of Funds April 30

“With Opportunity Village to end April 30th, this year…we are working with the County to set up that program. The state funding can only be used for encampment residents. We’ve identified the one of Devpar Court. It’s down in a ravine. You can’t really see it.”

In response to a question from Freitas about the funds and residents at Opportunity Village, the homeless hotel on E. 18th Street, Johnson responded, “For now, the encampment resolution funds will shift the focus to those residents.”

“We have a meeting with Felton to discuss the sustainability of the program,” she added in response to a question about the operator and what the City will do for the residents there.

“So, April 2025, we will no longer be operating Opportunity Village?” Freitas asked.

“Correct,” Johnson responded.

CalVIP Grant funds

Bernal asked her to speak about the CalVIP grant.

“We received approximately $1.8 million to reduce gun violence…in our community,” Johnson stated. “With that grant we were able to identify individuals who perpetrate gun violence. There are currently 13 fellows in the program. We offer all kinds of services to stabilize their lives. The operator is One Day At a Time. This program is roughly $800,000 per year. So, the $1.8 million is for two years.”

“This program is impactful. But we’re looking to grow it…for two years,” she added.

“When we first applied it was a 100% match,” from the City budget. “But this time around there is no match. So, that’s hot off the press,” Johnson.

Freitas asked for more details about the program at a future council meeting.

“A lot of this work is new. I would appreciate the opportunity to present,” she added.

“These are actually three-year cycles,” Torres-Walker shared. “The application was done jointly with the police department. Antioch could have gotten more than $1.8 million. But we need a pilot. This next cohort I’m looking to get more. The City of Richmond has been doing this for 20 years and she got $6 million.”

She also spoke of wanting to “increase the public-private partnership.”

“What I’m looking at are what are the measurable goals…when the presentation comes back,” Freitas requested.

“We’ll be asking for the council to continue the program,” City Manager Bessie Scott.

Council Budget – Agree to Eliminate $20K Slush Fund for Each Member

Under the city council budget, Freitas said, “I’m opposed to each city council member having $20,000.”

“I never spent any of the money anyways,” said Torres-Walker. “I actually raised more money in my district that exceeds this amount annually.”

Both Bernal and Rocha agreed.

“I’d rather see those funds go toward…the needs of our community,” the District 2 Councilman said.

“Each council member should have a meeting in their district. I think its appropriate on the controversial issues, especially,” Freitas said. “I think each council member can come to the council and say, ‘I want to have a meeting in my district’ and request the funds.”

“You can do a community meeting in your district without using any of these funds,” Torres-Walker stated.

“That’s where we disagree,” Freitas responded.

“On the Mayor’s Apprenticeship Program, I’d like to rename that the Antioch Apprenticeship Program or Director Johnson can come up with a catchy name,” Bernal stated.

Freitas asked about a few items in Attachment A, the General Fund Revenue Summary.

Bernal then asked about the programs based on ARPA funds. “That will give us a lot of work to do,” he stated.

Water Park Repair Funds

Wilson asked about the Water Park and the repairs needed there.

“The city council did allocate money for those repairs,” Merchant responded.

Parks & Recreation Department Director Brad Helfenberger shared, “There was an allocation of approximately $1.7 million. We are in the process of allocating that. The biggest project…will be resurfacing two pools and the deck. That will use $1 million.”

Capital Improvement Program Funds

“I know the CIP comes later in the program, but it would be good to bring it sooner, this year,” Bernal stated.

“I think we need to take a very close look at what’s in the CIP and if it’s not going to be built…it gets deleted,” Freitas requested. “I think we should deal with reality than have wish lists.”

Staff Vacancies

Bernal and Rocha then requested more details on the vacant positions and how many the city staff expects to fill and by when.

“If it’s realistic that only 20 to 25 officers and support staff can be hired, I don’t know why we would include in the budget all the vacant positions,” Freitas stated. “I think that will free up some of the money. I don’t think it’s responsible to continue allocating funds when we know realistically, we will never fill those positions in that year.”

“Agreed,” Merchant responded. “We try to do that in the budget.”

“It would be helpful to know how many police officers go out on disability,” Freitas requested.

“I’d like to know and hear about a list of infrastructure projects we can have,” Wilson requested.

Next Budget Workshop

It was agreed that the city council’s next budget session will be held on Tuesday, March 4.

Torres-Walker was concerned about when the meetings would start, “because some of us work full time” she stated.

“With everybody’s schedule, it’s hard to coordinate,” Scott responded.

“That means for the rest of the departments we’re going to have to hustle through the rest of them,” Bernal said about the schedule.

“Thank you for your work tonight and helping us move forward being productive,” he then said to city staff.

The meeting was adjourned at 8:05 p.m.


the attachments to this post:


One-Time Revenues FY25


Unfunded Liabilities 06-30-24


Measure W 1% Sales Tax Expenditures


Complete Antioch Council during mtg 1-27-25


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