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HomeMy WebLinkAboutAPRIL 19,1973 20:8276 .MINUTES CITY COUNCIL OF THE CITY OF ARCADIA ADJOURNED. REGULAR MEETING APRIL 19, 1973 .~ 'mili "M REVENUE SHARING The City Council of the City of Arcadia, California, met in an- adjourned regular session on Thursday, April 19, 1973 at 7:30 p.m. in the Conference Room of the Arcadia City Hall. PRESENT: ABSENT: Councilmen Scott, Hage, Butterworth, Helms, Arth None Council received the City Manager's report concerning permissible categories for the' use of funds from the Federal Revenue~Shatigg Program. . To date the City has received $212,000 which is in the bank and drawing interest. He listed some suggested priorities such as using the money for picking up the City's share of the helicopter program, the construction of the addition to the police facility, completion of one-time projects, an equipment revolving fund and other uses. The use of the funds for reducing taxes was also explored however very little information has been available thus far but it is considered a legal use. Councilman Butterworth submitted his viewpoint and stated in part that Council can receive two types of reports from the Manager: one can be objective with balanced information on both sides and with that kind of report Council is in a position where it can make a political decision - on the other hand Council can receive a report based on what he would like'to see Council do.' In this way C~uricil would not be making a political decision; that 'would be the decision of the city administration. He continued in part that due to the time element Council cannot do the necessary research and is wholly dependent on reports being accurate and comprehensive in order to make a political decision. 1 He noted that valuable information on the subject is available in the city library. He referred to articles in the Wall Street Journal which indicated that many cities are spending the money for police and fire buildings...that actually the predominent use by many cities is for property tax relief. He felt there are three courses of action: Use the money for 1) police addition 2) property tax reduction and 3) set it aside for emergencies such as wind storms, earthquakes and the like. He recalled that during the bond issue campaign last November what was heard most from the citizens was that there was a lack of communication. He suggested giving consideration to some type of citizen contact seeking a preference as to the use of this windfall. Councilman Helms submitted another possibility which seems to have appeal for some of the businessmen with whom he had talked: Lend the money to the Community Redevelopment Agency and as CRA progresses the loan is paid off at interest. The City would not only get the money back but would receive interest and the property tax base would increase. Councilman Hage was not certain in his own mind that property taxes should be reduced as the revenue sharing money did not necessarily come from property owners. He referred to the possibility of removing the utility tax which affects everyone and to which there is much objection. Mayor Arth felt there is merit in this latter suggestion; that there is little logic in the approach that the money must be spent this year or the City would get less next year. Councilman Helms agreed and'made a further observation that the property tax for the City is less than a 4-19-73 - 1 - 20: 8277 dollar per hundred dollar assessed valuation which is insignificant when compared to the total tax rate. Councilman Scott stated in part that this line of thinking does not seem to him to be consistent. On one hand Council recently passed an action where a new levy would be placed on certain property owners and on the other hand Council is talking about reducing property taxes; that the two are not compatible. He agreed with Councilmen Hage and Helms in their suggestions. However it is one thing to go to the electorate with a specific matter but quite another to place before it a number of rather complex alternatives. He would like to see the poli~ addition come from the same source as the Library rather than 1 to ~ay Federal funds built the police addition, however, there might be some advantage in using some of the money for disaster needs such as civil defense. He went on record as desiring to use some of the money for the continuation of the helicopter program6 Discussion ensued and the need for definitive answers was expressed. Can the money be used for CRA, for reducing property taxes, etc. It was MOVED by Councilman Helms, seconded by Councilman Butterworth and carried unanimously that the matter be carried over until May 1. During the interim the City Manager will obtain answers to specific questions from various agencies and the City Attorney will prepare opinions as to legality of some suggested uses. At 8:30 p.m., the meeting adjourned to 7 p.m."May 1, 1973 in the Conference Room. {! , If' kY t2t1lL Mayor ATTEST: ~dZ;~te~ ~ City Clerk 1 4-19-73 - 2 -