Loading...
HomeMy WebLinkAbout06-09-2004 Minutesi,•,rtMrrxv MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 9, 2004 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET SAN BERNARDINO, CA This is the time and place set for a joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino from the joint regular meeting held at 1:30 p.m., Monday, June 7, 2004, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the order of the adjournment of said meeting held on Monday, June 7, 2004, and has on file in the Office of the City Clerk an affidavit of said posting together with a copy of said order which was posted at 11:00 a.m., Tuesday, June 8, 2004, on the City Hall breezeway bulletin board. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission was called to order by Mayor/Chairman Valles at 9:13 a.m., Wednesday, June 9, 2004, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, ('alifornia. Roll Call Roll call was taken by Deputy City Clerk Hartzel with the following being present: Mayor/Chairman Valles; Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Kelley, McCammack; Senior Assistant City Attorney Carlyle, Economic Development Agency Executive Director Van Osdel, Deputy City Clerk Hartzel, City Administrator Wilson. Absent: Council Member/Commissioner Johnson. Council Members/Commissioners Longville and McGinnis Excused At 10:37 a.m., Council Members/Commissioners Longville and McGinnis left the Council/Commission meeting. 1. Budget Deliberations - Fiscal Year 2004/05 - City and Economic Development Agency (EDA) Budgets 1 6/9/2004 Mayor/Chairman Valles advised that the purpose of today's meeting was to allow Barbara Lindseth, Director of Administrative Services for the Economic Development Agency (EDA), and Barbara Pachon, Director of Finance for the City, to present the proposed Fiscal Year 2004/05 EDA and City budgets as they know them today, with certain assumptions, thereby enabling the Council/Commission to obtain a global perspective and understanding of the budget from both the City and the Agency. City Administrator Wilson stated that during the Fiscal Year 2003/04 mid -year budget review it was projected that the City would have a deficit of approximately $6.7 million for Fiscal Year 2004/05; however, that figure had since been reduced to approximately $3.6 million due primarily to refinancing the PERS rate for the Safety, increased revenues, and more expenditure savings than anticipated. He advised that staff was still formulating budget recommendations on how to address the deficit, and that today's meeting was simply to present an overview of the proposed budgets. Economic Development Agency Barbara Lindseth, Director of Administrative Services, distributed the following materials and explained in detail the information contained therein: • 2004-05 Fiscal Year Budget - Combined Summary - Redevelopment Project Area/Federal Grant Programs/Low-Moderate Housing Fund (tan paper) • Tax Increment Fund Projections As of Mav 1, 2004 (light blue paper) • Bond Proceeds As of March 31, 2004 (dark green paper) • Cash Flow Analysis - Low and Moderate Income Housing Fund As of May 1, 2004 (light green paper) • Cash Flow Analysis - Tax Increment - State College Project Area As of May 1, 2004 (dark blue paper) (This document depicts cash flow by line item of each project area individually and is back-up to the light blue document.) Ms. Lindseth advised that the Agency's overall budget for Fiscal Year 2004/05 is $55.8 million versus $59.8 million for Fiscal Year 2003/04. City City Administrator Wilson stated that Ms. Pachon would be reviewing the budget overview message in the City's budget document and walking the Council through some of the key highlights on revenue and expenditure changes in the proposed budget. 2 6/9/2004 Barbara Pachon, Director of Finance, referred the Council/Commission to the following document and provided a detailed overview of the information contained therein: City of San Bernardino Preliminary Summary Budget, Fiscal Year 2004-2005, pages iv-xvi; and Section 3. Budget Summaries, pages 7-11. Ms. Pachon stated that this was definitely not a normal budget year, and many changes have been taking place that are included in the budget document. She noted that the budget shortfall was now down to $3,650,600, with the assumption that the budget reserve ($6.7 million) stays at its current level and is not used. She added that the City is much better off than most cities in California, and it is a good thing that we have the budget reserve. Ms. Pachon noted that there were major changes in the revenues and the way the City will do business for Fiscal Year 2004/05, including the following three changes to the City's General Fund revenue budget, which are presented in greater detail in the budget document: • VLF (Motor Vehicle in Lieu Fee) Backfill Loan - the loan the City made to the State of its motor vehicle money, which has grown to over $3.7 million for this year. This requires the City to designate part of its budget reserve and hold it until we are paid back that loan. Therefore, even though there is a budget reserve of $6.7 million, $3.7 million will be shown as designated until Fiscal Year 2006/07 and cannot be used. • VLF for Property Tax Swap - part of the agreement the League of California Cities and cities made with the governor to help balance the State budget. Ms. Pachon explained that about 32 percent of the City's motor vehicle revenue comes from DMV fees we all pay and 67 percent comes from the State's backfill. The governor wanted to eliminate that backfill, so in its place he made it possible for cities to get more property tax. Another part of this agreement calls for the cities to help the State fund their deficit for two years. For two years, FY 2004/05 and FY 2005/06, the City will not receive from the State $1,877,500 each year. • "Triple Flip" - the State will take a 1/4 cent sales and use tax in exchange for giving the City a new revenue called "Supplemental Property in -lieu of Sales Tax" revenue. Unfortunately, sales tax iN paid to the City monthly, while property tax is paid only twice per year. Also, the property tax is going to be calculated based on the prior year's sales tax rather than current figures. 3 6/9/2004 Ms. Pachon stated that the Police Department's Nightlight Grant, which was used to create a City/County Probation IMPACT program, ended in 2003 and was not renewed; and money for these positions (four officers and one sergeant) has not been factored into the preliminary budget. She noted that the department has vacant positions that those officers will move into; therefore, no one will go out the door, but the department will have fewer positions overall. Assistant Chief of Police Billdt provided an update on police staffing levels, noting that the department would need another $500,000 to fund the same number of positions (including the IMPACT officers) that the department currently has funded, whether they are being funded by General Fund monies or grant monies. City Administrator Wilson stated that staff is trying to finalize a list of recommendations for the Council on budget reduction options, which will be ready in the near future for the Council to consider. In addition, the Council authorized the "Golden Handshake" program at the June 7 Council meeting, and notices will be going out to those employees who may want to take advantage of this voluntary program. He noted that depending on the response to this offer, it may drive the budget reduction recommendations —that several things need to come together by the end of the month, so the Council can adopt the budget. He added that there is also the question as to what the State may or may not do —that some of the things Ms. Pachon discussed still need legislative approval, Mayor/Chairman Valles pointed out that the Council may be faced with having to adopt a continuing resolution, which essentially allows the City to spend at last year's level until the budget is adopted. There was a short discussion regarding whether staff would be ready with all of their recommendations by the next scheduled meeting, or whether that meeting should be cancelled and the next meeting be held as scheduled on June 22. It was decided that the meeting should be adjourned to June 16, and if staff was not ready, it could be cancelled. 2. Adjournment Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Estrada that the meeting be adjourned to Wednesday, June 16, 2004, at 3:30 p.m. in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California, to discuss the City/EDA budgets. 4 6/9/2004 The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Derry, Kelley, McCammack. Nays: None. Absent: Council Members/Commissioners Longville, McGinnis, Johnson. At 10:48 a.m. the meeting adjourned. No. of Items: 2 No. of Hours: 1.5 RACHEL G. CLARK City Clerk By: r Linda E. Hartzel Deputy City Clerk 5 6/9/2004