HomeMy WebLinkAboutAPRIL 30,1997
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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.
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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.
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MOTION
HIGH SCH.
CONSTITU-
TION TEAM
(Jls-O - 30
IV.';)
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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.
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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
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