HomeMy WebLinkAboutJULY 7,1992
I
I
o//o-~-o
0707'1;)
C-C.. 34:0199
CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY
CLERK
ROLL CALL
AB 8 AND
STATE SHIFT
OF TAX
REVENUES
(Sunnnary by
Finance
Director)
0:>,<:0.7<;,-
./
M I NUT E S
CITY COUNCIL OF THE CITY OF ARCADIA
and the
'ARCADIA REDEVELOPMENT AGENCY
ADJOURNED REGULAR MEETING
JULY 7, 1992
The City Council and the Arcadia Redevelopment Agency met in
an adjourned regular meeting on Tuesday, July 7, 1992 at 7:00
p. m. in the Conference Room of the Arcadia Council Chamber.
PRESENT:
ABSENT:
Councilmen Ciraulo, Harbicht, Lojeski and Fasching
Councilman Margett
On MOTION by Councilman Lojeski, seconded by Councilman
Harbicht and CARRIED, Councilman Margett was EXCUSED.
The Finance Director presented a brief summary of the City's
financial situation with regard to the ongoing State budget
negotiations. The Governor and the Democrats in Sacramento
are still far apart in their respective proposals, so it may
be several weeks before an agreement can be reached, There
may be a significant shift from the bail-out money (AB 8)
which for Arcadia would mean $1,174,000 in FY 1992-93 and
$1,957,000 in FY 1993-94. At the present time, the Governor's
side is not proposing any shifts in the property tax for
cities. They are talking about assessing each city based on
a per capita amount of $1.65, and that would amount to
approximately $80,000 for Arcadia. Wi th regard to
,redevelopment, they are talking about a 4% pass through which
_. " would -'amount to approximately $105,000. These amounts are
indicated for the first year, and the figures would increase
as property values increase. Both the Governor's proposal and
the Democratic proposal eliminate the cities' share of the
cigarette tax, which would amount to approximately $53,000 for
Arcadia.
In order to offset some of the monies being lost by the
cities, there are proposals on the Democratic side to increase
the sales tax. At present, the sales tax is 8.25%; the fir~t
year it would be increased to 9%; the second year it would be
increased to 9.5% That revenue would be used to offset what
the cities lost as a result of AB 8. The cities would regain
that loss and the balance would go back to the counties. At
that time the County would be the one to pass an increase to
the sales tax. This City Council would then decide whether
or not to pass a resolution. If a resolution were not passed
at that time to take a portion of the sales tax, the County
would keep the money. For Arcadia, the 3/4% increase would
mean this would exceed the $1,174,000 lost to the State under
AB'8, There are smaller tax shifts one of which would amount
to approximately $5,300 to Arcadia.
Since the State doesn't have a budget, they don't have the
authority to pay bills this year, However, there are court
cases which say the State has to pay salaries, The State will
pay Arcadia the sales tax revenue because that's a pass
1
7/7/92
34:0200
through; however they will hold up Arcadia's gas tax revenue
if the budget isn't adopted, and any mandated cost of
reimbursements. Because there is no budget, the State is
issuing IOU's, Apparently most of the major banks are
honoring the IOU's; however they are charging 5% interest,
which will cost the State additional money. If Arcadia should
receive such IOU's, there would be the option to hold them and
earn the 5% interest or cash them at the bank, in which case,
the bank would receive the interest.
CITY MANAGER
RECRUITING
EFFORTS
0130-30
N-3P
In response to a request from the Acting City Manager, Alex
Mclntvre, Assistant to the City Manager reported that major
advertisements are being placed by the recruiter in an effort
to recruit applicants for the position of City Manager, The
recruiter has already solicited about fifty individuals just
through the open letter process, and he is following up on
that. The actual flyer will be available for Council in
Thursday's Newsletter. Staff will provide an update to
Council every two weeks.
I
AGENDA ITEM
WILDERNESS PARK
(Black Ltr.)
The Acting City Manager called attention to a letter from Mr.
Black regarding the Wilderness Park item on tonight's agenda.
REQUEST FOR
CLOSED SESSION
The Acting City Manager requested a CLOSED SESSION at the end
of this meeting,
CITY ATTORNEY
CLOSED SESSION
01/0 -10
The City Attorney announced that, "the CLOSED SESSION this
evening will be pursuant to Government Code Section 54957.6
in order for the City Council to meet with the City's
negotiator concerning salaries, fringe benefits, and
negotiations with the represented employees. Chief Johnson
is to attend, and Dan Cassidy, Special Counsel is here".
ADJOURNMENT
At 7:14 p,m, the City Council ENTERED the CLOSED SESSION,
RECONVENED AND ADJOURNED sine die at 7 :45 p, m.
ATTEST:
~"I/J ~~~
June . Alford, City erk '-
I
2
7/7/92