HomeMy WebLinkAboutAPRIL 19,1973
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.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.
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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
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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
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