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HomeMy WebLinkAboutJUNE 6,2000 42:0112 I CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK I ROLL CALL () J..;Jtl ,~ ,,) ~ 2000-2001 OPERATING BUDGET REVIEW I MINUTES CITY COUNCIL OF THE CITY OF ARCADIA SPECIAL MEETING (BUDGET REVIEW) June 6, 2000 As authorized by Arcadia City Charter Section 408 and California Government Code Section 54956, a Special Meeting of the Arcadia City Council was called by Mayor Kovacic. Said meeting was held at the City of Arcadia Council Chamber Conference Room, 240 West Huntington Drive, Arcadia, California, at 4:00 p.m. on June 6, 2000. At the Special Meeting, the City Council considered the following agenda items. 1. Discussion and direction concerning the Fiscal Year 2000-2001 City Operating Budget and the 2000-2005 Capital Improvement Program. 2. Closed Session pursuant to Government Code Section 54956.9(c) to discuss the initiation of litigation (one potential case). No further business other than the above was considered at this meeting. PRESENT: Councilmembers Chandler, Chang, Marshall, Segal and Kovacic ABSENT: None AUDIENCE PARTICIPATION Dorothv Denne, introduced the new editor of the Arcadia Weekly Newspaper, Kathleen August. City Manager Kelly presented an historical overview of the City's Operating Budget, stating in part that, beginning with 1994 the City entered Into a fiscal crisis. Expenditures were forecast to be inexcess of revenues. Subsequent to that time, services were cut, Library hours reduced, the Wilderness Preserve nature park was closed most of the week, thirty (30) positions were cut from the budget, salaries were frozen for a number of years and reserve funds were used to balance the budget. Last year revenues were up, which produced a slight surplus, and this year the City is in a much belieI' financial condition. In 1998 the City Council created a Citizens' Financial Advisory Committee (CFAC) to provide input to the Council on the City's current financial policies. CFAC was comprised of Chairman Mickey Segal, Vince Foley, Bob Hoherd, John McAlister and David Olson. The Committee presented a series of recommendations, which the Council reviewed and endorsed, that gave the Council general direction or guidelines which are reviewed annually. The most significant recommendation of the Committee dealt with reserve funds. By consensus the Commillee determined that reserve funds were appropriate and necessary, and the amount of funds in some accounts were inadequate to cover the City's needs for operations, in particular, the Emergency Fund, Equipment Fund and the Capital Fund. The City Manager pointed out that the Santa Anita" fire and consequent flooding conditions has taken $500,000 out of the Emergency Fund to-date. The Emergency Fund 1 6/6/00 42:0113 dropped down to approximately 10% of its required level of 20% of the General Fund. The Equipment Reserve Fund needed to be increased to correspond to the City's needs also. I The proposed Operating Budget for FY 2000-2002 was submitted for Council's consideration on May 18, 2000. The City Manager's budget message noted that the two- year budget accomplishes an enhanced planning perspective for the City's financial resources and ongoing costs of operations. The proposed budget maintains a positive. sustainable financial position with adequate reserve levels. . In keeping with priorities previously identified by the City Council and staff, the budget message listed considerable 1999.2000 accomplishments. And, noted also that the goal of the budget process is to establish service levels and funding in accordance with service priorities set by the City Council for the coming budget period. Further, the budget process adheres to the recommendations of the Citizen's Financial Advisory Committee. City Manager Kelly explained the budget review process that he went through with each City department head. All departments submitted straight-line budgets... justification for increases were handled separately. The department budgets mostly came in "on-line", with some budgets lower than last year. . The highlights of the FY 2000-2001 budget as suggested by staff, are as follows: Creation of a Facility Replacement Fund - $1,000,000 Equipment Fund - $500,000 to $900,000 PERS Fund - the retirement costs to the City for miscellaneous employees will be zero for FY 2000-2001. Staff recommended that the savings of approximately $594,000 be reserved for future fluctuations in PERS rates. One additional employee identified as a Y.E.S. officer (which cost will be shared with the School District) I Referencing budget expenditures it was noted that the Police and Fire Departments account for 49% of the total budget; Public Works Services - 10%; Library and Recreation - 9%; all other departments 32%. The major Revenue Sources for FY 2000-2001 to the General Fund, are as follows: Property Taxes - $4,800,000 Sales Tax - $6,600,000 Transient Tax - $1,500,000, indicates conservative growth Utility Tax - $3,900,000, slight growth Building Permit Fees - $960,000, down due to a slower economy Motor Vehicle License Fees - $2,500,000 Estimated General' Fund revenues from all sources for FY 2000-2001 total $29,472,950, which represents a 6% increase from the original estimates for FY 1999-2000 of $27,879,150. Expenditures in the General Fund total $28,211,630: a 1 % increase from the FY 1999- 2000 adopted budget. The proposed FY 2000-2001 budget incorporates a 3% cost of living adjustment for all employees. . The redevelopment budget, the City Manager noted, reflects a straight-line for FY 2000- I 2001, it may be impacted by potential projects such as the Foulger Ford site, housing projects, 'etcetera. This budget changes throughout the year because it is based upon such projects and Agency priorities. 2 6/6/00 I I I .'1;1 -1,""rr ~"'I"" . ( I .. '~"I' ',"7' "; I' "'i' . , , . 42:0114 CAPITAl The proposed Capital Improvement Projects for the five-year period (2000-2005) are IMPROVEMENT segregated into the following major categories and estimated costs: & EQT. PROG. I FY2000-2005 Streets $13,623,207 .'J.3~,,:sO Buildings and Grounds 17,189,600 Sewer/Storm Drains 1,266,000 Water 25,921,026 :1. Parks 834.125 Total 58,833,958 The source of these funds is derived from Gas Tax, Water/Sewer/Storm Drain Fees, Race Track Receipts, State and Federal Grant Programs. The first year of the Capital Improvement Program expenditures includes the Police Station design and possibly the demolition and excavation costs; Fire Station No. 1 assessment as to a future remodel project; the new Historical Museum; major street rehabilitation; the 210 Freeway soundwall... from second Avenue to Fifth Avenue; SI. Joseph Well site, major reservoir and well construction; and on-going projects such as slurry seal, curbs, gutters and sidewalks; City sewer cable videos; water meter replacement; and park and recreation facility improvements. A partial list of equipment acquisition costs in FY 2000-2001 as follows: Office Machines and Equipment Computers and Software Field and Plant Equipment Vehicles and Major Parts j '. Total. $ 125,000 23,000 270,000 1,100.000 $ 1,518,000 C' Transfer funds to the Emergency Fund $ 3,200,000 will bring this fund up to 20% of , . the General Fund Transfer to Facility Replacement Fund $1,000,000 . Transfer to Equipment Replacement Fund $ 900,000 New projects included in the proposed 2000-2001 budget: (All one-time expenditures): Library Books Cost Allocation Plan Information System Master Plan Directional Signage (design phase) $100,000 30,000 80,000 20,000 Total $ 230,000 Additional new programs and projects proposed for FY 2000-2001: (On-going expenditures) Personnel Analyst Fleet Technician Employee Incentive Programs Library Operations Youth Programs Communications Total $ 67,100 42,253 20,000 100,000 125,000' 73.000 $ 427,353 ,,~ . .' " . .'... '=': -~~ 3 6/6/00. , . it.. . ',. , ..- .. 42:0115 (One tim'e expenifitures) Update Youth Master Plan . Arcadia High School Track Resurface City Store . Directional Signs $ 10,000 (plus School Dis!. contribution $10,000) , 150,000 (plus School Dis!. contribution $150,000) 25,000 40.000 $ 225,000 Total The City Council discussed the update and improvement of ihe founiain at the County park. The City Manager reported the School District has committed to work with the City on this project. Materials allocation (City costs) $ 10,000 Consideration of the Valley Economic Partnership Membership fee of $8,000. Council felt these funds could be better used for something else. In discussion of the City's participation in the upgrade of the all-weather track af Arcadia High School, the District estimates this cost at $207,000. The District requests that the City contribute $125,000 to the project. The School District will put up $47,000 and the Invitational Track Committee will fund the balance of $35,000. Mayor pro tem Segal noted the School District is also putting in a new buill-in snack .par adjacent to the track for approximately $100,000, $50,000 of which will be funded by the Coca Cola Company and $50,000 by the District. It was MOVED by Councilmember Chandler, seconded by Council member Chang and CARRIED on roll call vote as follows to APPROVE the ALLOCATION of $125,000 for the upgrade of the all-weather track at Arcadia High School. . AYES: NOES: Councilmembers Chandler, Chang, Marshall, Segal and Kovacic None It was MOVED by Councilmember Chandler, seconded by Mayor Pro tem Segal and CARRIED on roll call vote as follows to APPROVE $10,000 as the City's share for the improvements to the fountain at Ule County Park. AYES: NOES: Councilmembers Chandler, Chang, Marshall, Segal and Kovacic None The Council determined to coordinate the lighting within the fountain with the materials used for resurfacing. Mayor Kovacic suggested there be a greater effort to identify some of the key buildings and sites in the City, such as signage designating the site of the first City Hall. The City Manager commented this program could get started with the $60,000 allocated for directional signage and, depending upon the number of sites identified, could be added to the program. . In reference to funds designated for a communications program, the City Manager commented staff is looking into means of better communications with the Asian residents. I I Mayor Pro tem Segal presented the possibility of an auditorium constructed in the area of the circular driveway at the High School, where the Little Theater is located. He believes enough space is in that area for such a building. Mr. Segal reported an architect will meet I with Principal Plourde and a contractor to view and walk this site and draw a conceptual plan for presentation to the School Board... it looks as though this idea could have plausibility. In reference to the cost of such an auditorium the Mayor felt this would 4 6/6/00 I I ~,. ; ,,' r" l' . ~l" " ";--(l f"! .,.' ,t '. 42:0116 probably come down to a foundation to raise funds for const~u~tion costs. In conclusion, the City Manager noted that $135,000 would:be added to the budge!. Staff will adjust the amounts to be placed into the reseNe funds accordingly, the budget will then be presented at the June 20'h Council meeting. " ADJOURNMENT At 4:50 p,m, the Cily Council RECESSED to Closed Session, RECONVENED and ADJOURNED sine die nt 6:20 p.m. A TT~ST: " ;,1 ~ i " . " " 5 6/'3/00