HomeMy WebLinkAboutMay 17, 2010 - Special MeetingCITY COUNCIL /REDEVELOPMENT AGENCY
SPECIAL MEETING MINUTES
MONDAY, MAY 17, 2010
4:00 p.m.
Location: Police Department Community Room (EOC), 250 W. Huntington Drive
CALL TO ORDER
Mayor Peter Amundson called the meeting to order at 4:00 p.m.
ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS:
PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic, Segal and Amundson
ABSENT: None
STUDY SESSION PUBLIC COMMENTS (5 minutes per person) - None
STUDY SESSION
52:0070
City Manager Don Penman provided a brief summary of the 2009 -10 adopted budget and an
overview of the 2010 -11 proposed budget; he discussed the challenges following the adoption
of the 2009 -2010 budget and shortfall in revenue projections in some funds due to the recession
and overall economy. He reported that the preliminary budget is out of balance $1,069,725
which is attributable to the increased cost of personnel services including implementation of the
fourth year of the Police Officers Association Memorandum of Understanding (about $470,000)
including rebudgeting the one -year deferrals from employees for FY 2009 -10 ($275,000),
employee merit increases ($207,000) and PERS increases related to salary adjustments; and
listed the positions that continue to be frozen. He further noted that the proposed budget
anticipates the passage of the property owner ballot measure in June for Citywide Street
Lighting Assessment; and reported that if the ballot measure fails, there would be $428,000 less
revenue to contribute toward street lighting costs; and he discussed the Gas Tax deferral and
the taking from the Redevelopment fund which could be more next fiscal year.
Hue Quach, Administrative Services Director provided a summary of the General Fund including
beginning and ending fund balances, estimated revenues, proposed expenditure and revenue
sources and general fund expenditure summaries. He noted a projected increase of
approximately 8.7% in sales taxes, 4.9% in Transient Occupancy Tax and an increase in
building and development activities, including an increase from $9.1 to $9.3 million dollars which
is about 1.7% in property tax money; he commented on the $100,000 payment negotiated with
Waste Management as part of a new contract; and summarized Department General Fund
Expenditure increases and decreases.
Mr. Penman discussed and presented options for the City Council to consider as part of the
budget review process including a "Reverse Priority" list from all departments which represents
a 2.3% reduction in each department budget.
All Department Heads presented an overview of their department budget, including
accomplishments achieved in fiscal year 2009 -2010 as well as goals, objectives and major work
plan elements for fiscal year 2010 -11.
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52:0071
Council Member Segal noted that the City Council should focus on a balanced budget for FY
2010 -11 and work on a long term budget plan for the following fiscal year. He felt that there was
money in different funds that can be transferred to the General Fund in order to balance the
budget for one year only. He suggested that $200,000 from the Life Insurance Fund be
transferred to the General Fund, reduce allocation of $200,000 in the Workers'
Compensation /Liability self- insurance, transfer interest earned from the unrestricted reserve
funds and transfer some Proposition C and Measure R money. He also suggested that a
transfer of $120,000 from the Capital Outlay fund and Equipment Replacement Fund to the
General Fund in order to balance the budget. Mr. Penman added that there were no eligible
Proposition C and Measure R money that could be used to offset General Fund expenses.
Mr. Penman advised that he reviewed each suggested revenue enhancement and reverse
priority list with staff; he recommended that the City loan the Redevelopment Agency money at
8% interest for one year; and discussed savings from implementing a 960 Plan for certain police
personnel positions for six months which can save in excess of $140,000.
At the conclusion of the meeting, the City Council directed the City Manager to bring back a list
of one time potential expenditure reductions suggested by Council Member Segal and revenue
enhancements suggested both by the City Council and the City Manager for discussion at a
future meeting.
ATTEST:
James H. Barrows, City Clerk
eter Amundson, ayor
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