HomeMy WebLinkAboutAPRIL 30,1997 I I I 39:0098 0((0 - !,'o o<{Jo 9 ? cC CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN TIffi OFnCE OF TIffi CITY CLERK MINUTES CITY COUNCIL OF THE CITY OF ARCADIA ADJOURNED REGULAR MEETING (BUDGET STUDY SESSION) APRIL 30, 1997 The Arcadia City Council met in an Adjourned Regular Meeting (Budget Study Session) on Wednesday, April 30, 1997, at 7:00 p.m., in the City Council Chamber. 1. ROLL CALL: PRESENT: Councilmembers Chang, Kovacic, Kuhn, Young, and Harbicht ABSENT: None 2. 3. 4. 5. FY 1997-98 OPERATING BUDGET i),J.;(o - ~ V SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS None. QUESTIONS FROM CITY COUNCIL REGARDING AGENDA ITEMS None. AUD~NCEPARTICWATION No one spoke. Consideration of the preliminary Fiscal Year 1997-98 operating budget. Staff presented an overview of the FY 1997-98 Annual Budget, General Fund, which is the primary operating fund of the City. Revenues and expenditures which are not specifically designated for a particular purpose are reflected in the General Fund. The Administrative Services Director, James Dale, explained the current cash position of this fund and estimated forecasts for FY 1997-98 and FY 1998-99. The forecast for the General Fund indicates that estimated funds available for FY 1997-98 will be $25,087,900, while the total proposed expenditures at year-end are estimated at $26,664,690, creating a deficit ending balance of $1,576,790. Mr. Dale further explained that unless additional long-term revenue sources are found, the General Fund will end FY 1998-99 with an estimated deficit of$2,482.715. Estimated expenditures have been within budget or less. while revenue sources have diminished, in particular, a decline in property tax and a major decrease of 40/0 in utility users tax revenues. City Manager Kelly noled that a permanent additional revenue source is indicated to solve the budget shortfall. The City Manager commented that the budgets of all City departments have been adjusted to realistically reflect costs to provide services. The problem is on the revenue side of the budget. 4f30(97 39.: 0099 The April 30, 1997 staff report included three FY 1997-98 Budget Alternatives, A, B and C. The first section of each alternative listed identical budget enhancements or expenditure cuts to make I up the deficit: $450,000, budgeted funds to remodel Fire Station No.3; $50,000 in additional fees; $100,000, contract out dispatch; and $200,000, employee benefit adjustments; for a subtotal in each Alternative of $800,000. The second section of Alternative A suggested using $700,000 in reserve funds for a Grand Total of $1,500,000; Alternative B suggested the sale of Fairview Park for $1,000,000, for a Grand Total of $1,800,000; and, Alternative C suggested eliminating seven City positions - $425,000, and an employee furlough program - $280,000, for a Grand Total 0[$1,505,000. Considerable discussion ensued centered on the three alternatives to make up the budget shortfall with staff responding to Council's questions. The reduction of seven positions were reported to be - two police officers in the D.A.RE. program, one police department management employee, one librarian, one code enforcement officer, one fire technician .and one clerical position. Staff noted also the proposed employee furlough program would require the "Meet and Confer" process before formal action could be taken. In the discussion the City Manager commented that police and fire personnel have received salary increases in the last two years, while other employees have not received salary increases in three years. The discussion turned to lighting and landscaping assessment districts and the mail ballot vote permitted by Proposition 218. The City Manager noted the City of Duarte recently completed such a process and the citizens approved a city park assessment district at $60 per year per residential parcel. Staff noted the budget for the Arcadia Fire Department is over $7,000,000 a year and if a fire suppression assessment district were formed, just a portion of this budget could be used t() offset losses in the General Fund of the City. The City Attorney ~xp1ained the diffitherence'lbeedtwbaleenl a mai~ ballot vote and regular election I. procedures. ProposItion 218 permIts e maI ot vote .or assessment districts. A public hearing process with a forty-five (45) day noticing requirement to allow protest of such an assessment; a notice to property owners explaining the proposed assessment, and the dollar amount to be assessed each parcel, along with a ballot for one vote per parcel. Consultants and an engineer would weight each parcel in terms of how much benefit accrues to each parcel from the service. A City-wide assessment district would incorporate approximately 16,000 parcels. This as compared with the regular municipal election process of a vote of the entire electorate within the City. The City Attorney noted the process for an assessment district mail ballot vote would have to begin immediately in order to comply with the requirements and forward the parcel assessments to the County by August 11, 1997 for inclusion on the property tax bills this year. In further discussion of Alternatives A, B and C and formation of an assessment district, Councilmember Young slated in part that she takes a dim view of releasing any employees; she favors the sale of Fairview Park to get through until a 2% or 3% increase in the utility tax could be voted on in April, 1998. Council member Young was strongly opposed to cutting the D.A.RE Program or a code enforcement position. Mayor Harbicht slated in part that a large portion of the funds listed in Alternates A, B and C are essentially reserve funds. He has no problem with selling Fairview Park... it is underutilized and of little value to Arcadia citizens. He does have a concern, however, about using up funds derived from such a sale. Further, a reduction in employees and an employee furlough program would result in service reductions. He is not in favor of eliminating the D.A.RE. Program. Mayor Harbicht believes Council should go to the citizens of Arcadia with a benefit assessment I district mail ballot vote and let them decide what they would like to do to keep the level of services up. 2 4f30(97 I I I MOTION HIGH SCH. CONSTITU- TION TEAM (Jls-O - 30 IV.';) 39: o'roo Mayor Pro tern Kovacic slated in part, that he is against selling City assets or using reserve funds if the need is for permanent revenue sources. He is not in favor of eliminating the D.A.R.E. Program. He would prefer Alternate B without the $200,000 employee benefit adjustment Referring to assessment districts and a mail ballot vote he suggested that both a Iightingflandscaping district and a fire suppression district be formed and put to a vote to form City-wide districts. Counci1member Kuhn noted that her first choice would be an increase in the utility users tax, or perhaps, go for an assessment district and the utility tax increase could be a hackup at the April, 1998 election if the assessment district vote fails. She has no problem with selling Fairview Park. CounciJmember Chang slated in part that he does not like Alternate C because it would cut City services. Council cannot cut anymore employee positions. He is not in favor of selling Fairview Park... it is a valuable asset and may be needed in the future. Councilmember Chang favors Alternate A. Reducing the Emergency Fund and Equipment Replacement reserves would not have a major impact on City reserves. He favors a 2% increase in the utility tax for a long-term revenue source because this would require a majority approval of the citizens. When conditions improve the tax could be decreased. Mayor Harbicht polled the Council for direction to staff since a final decision could not be made this date, and some very fast preliminary work must be done before such a decision could be made as to whether or not to present assessment districts to property owners for a mailed ballot vote, versus an increase in the utility tax next April. Councilmembers Kovacic, Kuhn, Young and Mayor Harbicht agreed to present assessment districts for a mailed ballot vote, and staff was directed to bring back information related to which assessment districts to present, and the appropriate levels of assessment to parcel. Councilmember Chang preferred to use reserve funds until a utility tax could be placed on the ballot in April, 1998. The City Attorney explained the hurdles involved if Council were to sell Fairview Park, because of grant funds received from the slate for park improvements. Staff will look into this matter and report hack to the Council. Council agreed that basically Alternative A was their choice for a course of action at this time until a vote is taken on assessment districts or on an increase in the utility tax. It was MOVED by Councilmember Young, seconded by Council member Kuhn and C~D on roll call vote as follows that, rather than some of these draconian cuts in services, the Council has decided to go to the citizens of Arcadia and ask them if they would rather assess themselves additional taxes to maintain the current services; and DIRECT staff, as quickly as possible to take a look at the assessment district alternatives for Council's decision as to what direction to take. AYES: NOES: ABSENT: Counci1members Chang, Kovacic, Kuhn, Young and Harbicht None None The City Manager noted that the information requested will be' provided for Council's consideration at a 6:00 p.m. Council meeting on May 6, 1997. At the request of Mayor Harbicht, Mayor Pro tem Kovacic reported on the competition in Washington, D.C. and other activities experienced by the Arcadia High School Competition Team and coaches. This was a great experience. The team placed second in the national finals. Mayor Pro tern Kovacic expressed his pride in the accomplishment of these students... they did a tremendous job. Mayor Harbicht commented the team will be recognized by the City at a future Council meeting. 3 4(30(97 6, CLOSED SESSION cJIIO-'(.O ADJOURN- MENT 39:0101. The City Attorney announced a Closed Session pursuant to Government Code Section 54957.6 to confer with City labor negotiators regarding negotiations with represented and unrepresented employees. At 8:48 p.m. the City Council ENTERED the CLOSED SESSION, RECONVENED the Adjourned Regular Meeting and ADJOURNED at 9: 10 p.m. to Tuesday, May 6, 1997 at 6:00 p.m. in the Conference Room of the Council Chambers to conduct the business of the City Council and Redevelopment Agency and any Closed Session necessary to discuss litigation matters, personnel or evaluation of properties. ATTEST: /--c~ Robert C. Harbicht, Mayor of the City of Arcadia 4 4f30(97 I I I