Hollister City Council approves amendments to discretionary funds policy amid reserve concerns

The Hollister City Council convened on March 3, 2025, to discuss several key agenda items, with a primary focus on amendments to the city council discretionary funds policy. The meeting began with acknowledgments of the efforts made by the city attorney and city manager, setting a collaborative tone for the discussions ahead.

The first significant item addressed was a resolution to amend the city council discretionary funds policy. Staff provided a report outlining the proposed changes, which included a recommendation to not allocate discretionary funds if the city’s fund balance fell below the minimum reserve amount established in the budget. This amendment aims to ensure fiscal responsibility and maintain the city’s financial health. Additionally, the policy would prohibit the use of discretionary funds six months prior to municipal elections to avoid any potential conflicts of interest or perceptions of impropriety.

Council member Morales noted that, based on current budget projections, it could take three to five years before discretionary funds might be available again, depending on revenue and expenditure trends. This prompted further discussion among council members regarding the appropriateness of the fund amounts, with some expressing concerns that the proposed $50,000 allocation was excessive.

Public comment on the item was minimal, with no contributions from the public. The council members engaged in a thorough discussion, weighing the merits of the proposed amendments against the backdrop of the city’s financial situation. Council member Lisonbee highlighted that previous discretionary funds had been depleted prior to the meeting, emphasizing the need for careful management of these resources.

As the discussion progressed, Council member Resendiz expressed a desire to amend the resolution to reflect a lower discretionary fund amount, suggesting that $5,000 would be more appropriate than the initially proposed $50,000. This sentiment was echoed by other members who voiced concerns about the perception of special interests influencing fund allocations.

The meeting culminated in a call for a roll call vote on the proposed resolution. However, Council member Resendiz also introduced a substitute motion to rescind the discretionary fund policy altogether, arguing that the funds should not be viewed as belonging to the council but rather to the public. This motion aimed to eliminate the discretionary fund in light of the city’s financial challenges, prompting further debate among council members regarding the future of the policy.

In conclusion, the meeting highlighted the council's commitment to fiscal responsibility and transparency, with significant discussions surrounding the discretionary funds policy reflecting broader concerns about public trust and financial management. The council's next steps will involve further deliberation on the proposed amendments and the potential rescindment of the discretionary fund policy.