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Ceres council declines NetFile contract after budget concerns; motion fails 2-2

City of Ceres City Council · February 11, 2026
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Summary

A proposed contract for NetFile to accept Form 700 filings and provide SB 827 financial training failed on a 2-2 vote after councilmembers expressed concern about spending from general-fund reserves and whether the vendor was the best option.

A proposal to contract with NetFile for electronic Form 700 filing and SB 827-required training failed at the Feb. 9 Ceres City Council meeting after councilmembers split 2-2 on the motion.

Staff said the contract was budgeted for the current fiscal year and that NetFile offered advantages including electronic submission of campaign statements and a vendor-provided financial-training product aimed at meeting new SB 827 requirements. Council members who opposed the motion said the city is facing budget pressures and questioned whether the expense should proceed now; one council member said he had found cheaper training options online.

Council member James Casey said he did not support the contract because he had not voted for that original budget and objected to drawing from reserves. Council member Viera also voted no. Councilwoman Serena Otero and Mayor Javier Lopez voted to approve, resulting in a tie and failure of the motion.

Staff noted the contract provides an option to cancel with 30 days' notice and that the training will be mandatory for some incoming appointees sooner than for incumbents, but the motion to proceed did not receive the necessary majority at that time.