HomeMy WebLinkAboutJUNE 24,1978
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ROLLCALL
EXECUTIVE
SESSION
HEARING
BUDGET
(CONTINUATION)
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l~
23:9559
MINUTES
CITY COUNCIL OF THE CITY OF ARCADIA
ADJOURNED REGULAR MEETING
JUNE 24, 1978
The City Council met in an adjourned regular session on June 24,
1978 at 8 a.m. in the Arcadia City Hall Conference Room.
PRESENT:
ABSENT:
Councilmen Gilb, Margett, Pellegrino, Saelid, Parry
None
At 8 a.m. the City Council entered an executive session and reconvened
at 8:30 a.m.
Mayor Parry related that the following has been received, informally,
via the Los Angeles Times, "Based upon the available information to
date, the City of Arcadia expects to receive 55% of the 1978-79
estimated property tax revenue or $1,087,219 from the State if the
City agrees to these conditions: 1) It shows no surplus in the budget
greater than 5%, 2) Maintains police and fire services at 1977-78
levels, and 3) gran~only those salary increases granted by the
State to State employees." It was pointed out that this is only the
first word received and actually should not be relied upon until the
City receives official word from the State.
In the discussion that ensued the City Manager said in part that
basically all of the capital project items have been eliminated;
there have been reductions in the General City budget and management
is reviewing personnel. It was noted that the City Council has gone
through the budget in great detail and a number of items have been
removed or reduced in order to arrive closer to the $1,900,000 figure.
It was then MOVED by Councilman Gilb, seconded by Councilman Saelid and
carried on roll call vote as follows that the City Manager effect a
substantial reduction in personnel at the top management level.
Councilman Gilb clarified this motion by commenting in part that
there are areas where some functions could be combined with another....
where one person could do the work of two...especially in the
management level.. he felt this would be better than to reduce the
services and the safety of the City.
Roll call vote was then taken on the motion.
AYES:
NOES:
ABSENT:
Councilmen
None
None
Gilb, Margett, Pellegrino, Saelid, Parry
Mayor Parry declared
public testimony the
budget.
the hearing open and advised that following any
City Council would return to its study of the
THE FOLLOWING STATEMENTS ARE IN SUMMARY AND ARE TAPE RECORDED ON FILE
IN THE OFFICE OF THE CITY CLERK.
Ed Passmore, 1109 Columbia Road, suggested that consideration be
given to funds earmarked for redevelopment should ,be available to the
City; that this might balance the budget which the City Council is
endeavoring to do; also that this should be more clearly reflected in
the budget or in its reprinting. Mr. Passmore also referred to some
itemized amounts in the budget relating to lubricants and gasoline,
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23:9560
for instance, and questioned the vehicles used by City personnel. He
also felt the City Attorney could handle any consultant duties in
connection with the Redevelopment Agency. Some discussion was held
on the planning, building and property maintenance functions. He
felt there are other areas which could be reduced.
Herb Fletcher, 175 W. Lemon Avenue, referred to the proposed sewer
service charge and stated in part that he would be more than willing
to pay this charge just not to have to be faced with the possibility
of having a large fee to pay for sewer repair in the future. That
he would consider it insurance similar to the fire insurance everyone
carries on their homes. He favored most of the proposed service
charges. And once again asked the City Council to work through its
representatives on a State level to see if the Gas Tax monies could
be freed so the cities would have flexibility in the use of those
funds.
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Jeff Dring, 205 Alice Street, said in part he felt the City is near
a balanced budget - now with the information about State funds - and
that he doesn't see the need for any added revenue. He also submitted
that any proposed tax revenue increases or tax shift could and should
be put to the voters and not decided by the City Council... and in his
opinion some of the reductions have not been made in the right areas.
James R. Helms, Jr., 2220 Sewanee Lane, stated in part that in his
op1n1on the City Council has approached the problem in a realistic and
sincere way; that in casting his vote for 13 he was actually voting
against the County which has in the last ten years increased its total
employment from 47,000 to 87,000. Mr. Helms felt the excesses in
government spending are at that level, not the local. He felt the
City has maintained a very tight budget and that the residents have
received the highest return on the tax dollars in terms of efficient
public service. He urged the City Council to continue to support the
League of California Cities and press for legislation to eliminate .
State control such as is attached to the acceptance of the funds which
the State will distribute. He was distressed at the provision included
in the conditions for acceptance of the funds that there is a
limitation on salaries for public employees; that he did not feel that
was in the people's thinking when they voted for 13 and that the City
Council should strive to maintain the contracts it has with the
employee groups.
Robert Strub, President of Santa Anita Consolidated, Ltd., concurred
with Mr. Helms in maintaining standards which have brought about the
quality of life in the City. Mr. Strub referred to the amount of
taxes that the residents pay compared to other communities and one of
the reasons it has been so low is the fact that the race track is
located in this city and also because there is practically no bonded
indebtedness.. that the admission taxes have produced a profit for the
City over and above the cost of administering traffic control.. the
surplus has always been used for capital improvement projects. He
noted that in 1977-78 the race track and Fashion Park contributed
$2,295,000 in sales, admissions, property, utility and business license I
taxes to the City. That the facilities comprise about 6% of the total
physical area... and that it is paying for 23% of the general operating
budget... that the race track is carrying its share. That the race
track has always been treated fairly and he would like to have that
continued... and recommended that the City Council in adopting new
ordinances state therein that they will be automatically terminated if
Proposition 13 is declared invalid. Also that the Council adopt a
resolution at this meeting stating that it is the Council's intent to
rescind in part or in total all new taxes that may be imposed at this
time if circumstances change and those taxes are no longer necessary
to defray the budget deficiency.
Ray M. Rogers, General Manager of Santa Anita Consolidated, advised
that the total admissions tax paid for 1977-78 fiscal year was $620,609.
That the net figure after deducting all police costs is $431,000 to the
City.
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ORDINANCE
NO. 1633
INTRODUCED
UTILITY TAX
t!
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ORDINANCE
NO. 1645
INTRODUCED /
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73:9561
J. L. Young, 1759 Oakwood, former member of the Library Board, said in
part that the Library Board would do its part in salary reductions and
other reductions.... as far as the amount of'the book budget is concerned
it will probably increase what with periodical costs. The circulation
is the highest of any 'city up' to 50,000 population and the book collection
is one of the smallest. He felt the Library service should be free for
the residents and referred to a State Law prohibiting such a fee.
Mike Ransom, 243 E. Colorado, said in part that necessary taxes may be
imposed by a 2/3 vote of the electorate; that he has been going over
the budget and commented on some of the items he felt were wrong; he
felt the recreation activities'could be self-supporting. During this
a representative of the Recreation Department explained the sports,
day and resident camp acti.~ties. Mr. Ranson also felt the item
earmarked for sending an employee to school was not necessary - that'
if a person is not qualified in the first place he can attend school
on his own. He also mentioned the use of vehicles and the payment of
mileage and the possibility of having those who leave trash on the
streets due to an activity should have to pay for the cleanup.
John Joseph, 408 N. First Avenue, agreed with statements made by Mr. Helms.
He felt the increased fees or taxes being considered by the Council would
not place a burden on anyone, especially the property transfer tax; that
in his opinion the realtors created the property situation allover the
country... He noted that many cities especially in the east pay a
sewer tax and submitted that the Council should go ahead and do what
it thinks is right because whatever it does will not please everyone.
The City Council then considered the introduction of an ordinance or
ordinances providing for 1% or a 2% increase in the utility tax which
is now 5%. Due to the time element such an ordinance or ordinances
would have to be introduced at this meeting and could be adopted on
June 30 if the City Council so determines. In order to consider this
matter the following ordinances were presented for the reason that
the City Council is urgently considering the adoption of the budget
prior to July 1.
The City Attorney then presented, explained the content of this
ordinance which would provide for 6% utility tax (a 1% increase) and
read the title entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING
SECTIONS 2671, 2671.1, 2671.2 AND 2671.3 LEVYING A UTILITY USERS TAX
ON THE USAGE OF TELEPHONES, ELECTRICITY, GAS AND WATER FOR USUAL
CURRENT EXPENSES OF THE CITY OF ARGADIA."
It was MOVED by Councilman Saelid, seconded by Councilman Gilb and
carried on roll call vote as follows that the reading of the full text
of Ordinanance No. 1633 be waived:
AYES:
NOES:
ABSENT:
Councilmen Gilb, Margett, Pellegrino, Saelid, Parry
None
None
It was further MOVED by Councilman Saelid, seconded by Councilman Gilb
and carried on roll call vote as follows that this ordinJnce be INTRODUCED.
AYES:
NOES:
ABSENT :
Councilmen Gilb, Margett, Pellegrino, Saelid, Parry
None
None
The City Attorney then presented, explained the content (this ordinance
would provide for a 7% utility tax, an increase of 2%) and read th~
title of Ordinance No. 1645, entitled: "AN ORDINANCE OF THE CITY OF
ARCADIA AMENDING SECTIONS 2671, 2671.1, 2671.2 AND 2671.3 LEVYING A
UTILITY USERS TAX ON '!HE USAGE OF TELEPHONES, ELECTRIC ITY, GAS AND
WATER FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA."
It was MOVED by Councilman Gilb, seconded by Councilman Margett and
carried on roll call vote as follows }hat the, further-reading of the
full text be waived:
AYES:
NOES:
ABSENT:
Councilmen Gilb, Margett, Pellegrino, Saelid, Parry
None
None
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ADJOURNMENT TO
DATE CERTAIN
23:9562
Councilman Gilb further MOVED that Ordinance No. 1645 be INTRODUCED.
Motion seconded by Councilman Margett and carried on roll call vote
as follows:
AYES:
NOES:
ABSENT:
Councilmen Gilb, Margett, Pellegrino,
None
None
Saelid, Parry
During the above consideration it was pointed out that this action
does not necessarily endorse the ordinance - just in the event Council
would want to take action prior to July 1. Staff advised and answered
questions concerning this ltility tax and noted that some cities go as
high as 14% which certainly is not being considered by this Council,
however, none are lower than the 5% currently charged by this City.
It was noted that if the ordinance is adopted the percentage figure
could always be changed.
I
RECESS
Kevin Barry, 1639 Oakhaven, reiterated his statement previously made
before the City Council - that the people who voted for Proposition 13
said they wanted a limit placed on government spending. He was not
in favor of the prospect of raising new taxes which he felt make
those in attendance at the meetings a party to the decisions of Council.
He urged the Council to adopt a balanced budget using the available
funds and not to impose any new taxes before July 1.... and come up
with the best level of service for that amount of money.
Pearl Scanlon, 461 W. Palm Drive, reiterated her statement previously
made that she talked to literally hundreds of persons on Proposition 13
and the main thing they wanted was the elimination of any additional
taxa t ion.
Milton Bade, 63 Birchcroft, explained his experience in the payment of
building permit fees which he felt could be increased a little and no
one would object. However, he did feel government spending has gotten
out of hand; that he could be critical of operations he notices while
travelling around in the City; but on the whole the City is a good city
in which to build. He sugges led that the building permit fees could
be reconstructed.
Bill Krumm, 1626 Rodeo Road, referred to the proposed fees which the
City Council is considering and said in part that they are all
meritorius and should be pursued - not necessarily obviating the need
for revenue raising measures. He felt with all due respect to the
race track operations that the admissions tax is too low; and favored
the property transfer tax of 1/2 of 1% which is under consideration.
He would not like to see the City get raped in order not to have any
new tax revenue.
Don Little, 821 E. Camino Real, said in part that he moved to the
City because of its amenities and he did not want to see the City turn
into some type of a slum area or the like. He felt the residents
should consider that and as far as the property transfer tax is
concerned he could not see why the speculators could not share a
little of their profit which has been made with very little effort
on their part due to today's market in real estate.
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Irene Groen, 1022 La Cadena, spoke to the proposed increase in the
utility tax and was advised that only because of the legal technicality
the ordinance was introduced at this meeting. This does not in any
way mean that the City Council has made its determination to adopt
or not to adopt the ordinance. ...
At 1:30 p.m. the meeting adjourned to 7 p.m. June 27 in the Council Chanter.
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City Clerk '-'
6-24-78