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HomeMy WebLinkAboutJUNE 24,1978 I ROLLCALL EXECUTIVE SESSION HEARING BUDGET (CONTINUATION) I 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, 6- 24- 78 - 1 - 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. I 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. 6-24-78 - 2 - I ~ ORDINANCE NO. 1633 INTRODUCED UTILITY TAX t! I ORDINANCE NO. 1645 INTRODUCED / '"""7" ""-'.' i'. .... '\'. 'I .': ~.~' 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 6-24-78 - 3 - \~ rJ) \ 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. I 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. G\u~~ ~~.~<~ City Clerk '-' 6-24-78