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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