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HomeMy WebLinkAbout04-22-2002 Minutes MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING APRIL 22, 2002 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 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 8 a.m., Monday April 15, 2002, 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, April 15, 2002, 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 8 a.m., Tuesday, April 16, 2002, on or near the door of the place at which said meeting was held. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino was called to order by Mayor/Chairman Valles at 9:35 a.m., Monday, April 22, 2002, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. Roll Call Roll call was taken by City Clerk Clark with the following being present: Mayor/Chairman Valles, Council Members/Commissioners Lien, McGinnis, Derry, Suarez, Anderson, McCammack; Senior Assistant City Attorney Carlyle, City Clerk Clark, City Administrator Wilson. Absent: Council Member/Commissioner Estrada. Council Member/Corruuissioner Estrada Arrived At 9'42 a.m., Council Member/Commissioner Estrada arrived at the Council/Commission meeting. 1 Review & discuss EDA/City budgets Mayor/Chairman Valles announced that officials from the City of Zhongshan, China, were attending the workshop to get an idea of how the City manages its budget. She stated that these officials were elected by their government to attend a 3-month training program at Cal State University, San Bernardino, and would be meeting with City officials throughout the week. 1 04/22/2002 The Mayor announced that the City received an invitation to send three officials to Korea, June 4-7, 2002, in order to finalize the process of becoming a sister city She stated that Chuck Bradley, Cultural/Fine Arts and International Affairs Director, was planning on going, and that two spots were available since she and her husband could not attend. Mayor Valles stated that the purpose of the meeting was to discuss the Economic Development Agency's and the City's budgets to provide an idea of where the City stands today from last year's budget, and to identify the challenges facing the City during the coming year EDA Budget The following Economic Development Agency documents were submitted into the record. A memo titled, Mid-Year Budget Review, from Gary Van Osdel dated February 20, 2002 (gold sheets); 2002-03 Cash Flow Analysis - Preliminary Tax Increment (blue sheets), Proposed Uses of New Bond Proceeds (green sheets), and Staff Recommendation on Prioritization on the Use of Bond Proceeds, dated November 5, 2001 (white sheets) Barbara Lindseth, Administrative Services Director, stated that as of December 31, 2001, approximately 43 percent of the Agency's budget had been expended (goldenrod sheets) She stated that due to the fact that approximately 95 percent of the Agency's budget consisted of prior approved contracts, agreements, and bond payments, they anticipated being on-track. Ms. Lindseth stated that the Agency expected just over $17 million in revenues this year, and as of March 31, 2002, had already received almost 64 percent of their tax increment revenues with the next largest portion coming in after April (blue sheets) She stated that the cash flow analysis was very preliminary, but that the Agency anticipates it will be in the black by approximately $24,000, not including the reserves that they will have on hand as of July I She indicated that the Agency originally budgeted tax increment revenues at a slightly lower amount because they usually don't get their revenue projections in until after the budget is submitted to both the Commission and the Council for approval. Ms. Lindseth assured the Mayor and Council that the Agency would have the $7.5 million needed to meet the bond debt service Ms. Lindseth stated that the green sheets detailed the proposed uses of the new bond proceeds with the first sheet showing the uses of the monies in and the monies out, and the second sheet showing the break down by project areas as to how much each project area is giving on the 1995 Series A and the 2002 Tax Allocation Refunding Bonds. She stated that the Agency received $3 1 million on the Mt. Vernon Bond Issue, $1 7 million on the Forward Current/Advance 2 04/22/2002 Refunding of 1995A, and $9.3 million on the 2002 Tax Allocation Refunding Bonds, leaving a balance of approximately $4 I million. Gary Van Osdel, Economic Development Agency Executive Director, noted that there was a minor change in the uses since heing reviewed by the Council in March. He stated that the Agency had about $1 million set-aside for the HUB project and they were going to propose that it be taken out of the Forward Current! Advance Refunding Bonds until they found out that the same rules would apply to the expenditure of those funds as to a typical bond issue. He stated that because it is not a redevelopment project area they could not issue a mutual benefit resolution and would have to seek other resources. Mr Van Osdel stated that the Agency had another idea on how to back up the HUB project and as soon as it was finalized they would bring it back to the Commission. At Council Member/Commissioner Estrada's request, Ms. Lindseth provided a summary of the priority list of projects recommended by Agency staff in November 2001 and the projects that are currently being considered as of March 2002 (white sheets) City Budget The following City documents were submitted into the record. General Fund Projection, Fiscal Year 2002-2003 (white sheets); and a staff report containing the Fiscal Year 2001-2002 Mid-Year Budget Analysis, dated March 5, 2002, from Barbara Pachon, Finance Director (multi-colored sheets) Barbara Pachon, Finance Director, reviewed the General Fund Projection (white sheets) stating that the total available revenues were estimated to be just over $98 million. She stated that there was an estimated beginning fund balance of about $13 million, which comes from the mid-year review and will carryover into 2002-2003, and an ending fund balance of about $8.2 million. Ms. Pachon stated that the City's budgeted reserve right now is at $9 8 million and there is a projected shortfall of about $1.5 million. She stated that the next two pages of the handout provided the details of the assumptions the Finance Department made for the 2002-2003 year broken down into Revenues, Transfers-In, Transfers-Out, and Expenditures. Ms. Pachon stated that most of the adjustments took place in the expenditures such as the removal of certain one- time project costs, increases in Safety Unit salaries, and property insurance costs. Fred Wilson, City Administrator, passed out a document titled, FY 02/03 Anticipated Budget Issues, and FY 03/04 and Beyond (pink sheet), which listed several items such as the Utility User's Tax Rate Reduction, loss of grant 3 04/2212002 funding, Verdemont Fire Station, Waterman Landfill closure, Upgrade of the CAD/RMS system, LCNG Fueling Station costs, etc. Mr Wilson also passed out a memorandum dated April 17, 2002, regarding a Monthly Grant Update, which he indicated will be distributed on a monthly basis and will summarize recent grant activities, including new grant opportunities that are on the horizon. Council Member/Commissioner Estrada stated that having staff who possess the capabilities to write successful grant proposals was long overdue and felt that they should be rewarded in some fashion. Council Member/Commissioner McCarnmack stated that the Mayor had given her approval to set up the first Grant Ad Hoc Committee meeting and that she had planned on calling each member to set up the first meeting. She indicated that they would discuss the issue and take it to the appropriate committee. 2. Adjournment The meeting adjourned at 11'09 a.m. The next joint regular meeting of the Mayor and Common Council and Community Development Commission is scheduled for 8'00 a.m. (to be adjourned to 1 30 p.m.), Monday, May 6, 2002, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RACHEL G CLARK City Clerk BYt~~ Lmda Sutherland Deputy City Clerk No of Items. 2 No of Hours: 1.5 4 04/2212002