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HomeMy WebLinkAbout06-12-2003 Jt Adj Reg Mtg Minutes - MCCMINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 12, 2003 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 1:30 p.m., Monday, June 2, 2003, 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 2, 2003, 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 :45 a.m., Tuesday, June 3, 2003, 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 5:49 p.m., Thursday, June 12, 2003, 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 Estrada, Longville, Derry, Suarez, Anderson, McCammack; City Attorney Penman, City Clerk Clark, City Administrator Wilson. Absent: Council Member/Commissioner McGinnis. 1. Budget deliberations -Fiscal Year 2003/04 -Discussion & possible action - Proposed City and EDA budgets Mayor/Chairman Valles stated that today's workshop would include an overview of the proposed Economic Development Agency (Agency) and City budgets, a brief presentation relative to the State's budget, and comments from Police Chief Zimmon regarding the proposed Police Department budget. She advised that the second budget meeting would be a presentation of the Capital Improvement Program (CIP); and the third and fourth workshops would be used to zero in on ways to balance the budget, with the Council Members presenting their ideas for budget reductions . 6/12/2003 EDA Bud et Gary Van Osdel, Agency Executive Director, advised that the projected resources for the Agency are approximately $59 million, of which 95 percent is for pre-obligated expenditures. A discretionary amount of approximately 5 percent, or a little less than $3 million, is designated for operation of the Agency. He stated that due to the anticipated raid by the State on the Agency budget, and in an effort to trim the budget as much as possible, staff was proposing that two positions not be funded. Mr. Van Osdel advised that State Senator Brulte has come up with an idea which would direct approximately $1.2 billion of permanent funding from cities for State government. The formula equates to $16 per capita, which would be a $3 million hit for San Bernardino. If approved, the assumption is that most cities that are in the same situation as San Bernardino, would be forced to go to the Redevelopment Agency to make those payments. Barbara Lindseth, Director, Administrative Services, advised that the total Agency budget this year is $59,849,446, which is a little over $300,000 less than last year. Ms. Lindseth distributed and provided an overview of the following Economic Development Agency budget documents for fiscal year 2003/04: • 2003-04 Fiscal Year Budget • Tax Increment Fund Projections as of May 1, 2003 • Bond Proceeds as of May 1, 2003 • Cash Flow Analysis Low and Moderate Income Housing Fund as of May 1, 2003 • Cash Flow Analysis -Tax Increment State College Project Area As of May 1, 2003 (Note: This document consists of 11 separate project areas/2 pages each) • Community Development Block Grant Appropriation Report City Budget Fred Wilson, City Administrator, advised that staff knew mid-year that booking fees and state-mandated reimbursements would not be in the budget, and when added to the increase in PERS costs of about $3 million, it gives a pretty good idea of the budget challenge the City is now facing. 2 6/12/2003 He stated that staff also knew mid-year that the City was facing a $7 million deficit in the General Fund. At that time the Mayor, working with the Council and department heads, began looking for ways to generate more revenue and reduce expenses. Over the next four to five months, as a result of implementing efficiency improvements and revenue enhancements, the City realized a decrease in the deficit from $7 million to $4 million. Mr. Wilson also mentioned the proposed per capita fee of $16, which would result in a permanent reduction to the City's budget of $3 million. He added that staff knows that over the next couple of years there will be some real budget problems, including an increase in PERS rates, due primarily to what has happened with the stock market. Barbara Pach on, Director of Finance, provided an overview of the Preliminary DETAIL BUDGET FISCAL YEAR 2003-2004, Section 1, Budget Message; and Section 2, Budget Summaries. She noted that the City has almost $103 million in total estimated available funds, with a beginning fund balance for fiscal year 2003/04 of $9,747,300- over $1.5 million more than anticipated. She stated that the budget reserves remain at $6,761,700; however, to keep the reserves we have to fund a deficit of $4,049,400. Ms. Pachon pointed out that property taxes and sales tax have continually increased; in fact, County of San Bernardino sales tax has increased more than any other county in the state, with a projected 4.5 percent increase. She advised that Edison had petitioned the Public Utilities Commission for a rate decrease, which had not been factored into the budget. If approved, however, the decrease would be about 13-15 percent, or a loss of $1.2-1.4 million in revenue; and although the City will be able to reduce its electric expenditure, the savings will not offset the revenue loss the City will experience. Council Member/Commissioner Estrada noted that in years past the loudest cry has come from Little League; however, this year they will be second compared to potholes. She stated that it would be helpful to know what the past commitment has been relative to streets/potholes and what is being projected for this year. Mayor Valles stated that the next budget workshop would cover the Capital Improvement Program, including streets. She noted that all local cities are aware of the growing needs in the street department, and the fact that they are upside down in meeting those needs. 3 6/12/2003 It was also noted that there have been large increases to the Worker's Compensation Fund expenditures. Council Member/Commissioner Estrada stated that it is not uncommon to hear, "cut the staff, " and she stated that she would like to see staffing levels of the City over the last ten years, as well as the increase in population, as she believes we are down to bare bones. Mr. Wilson stated that those figures had been compiled for the years 1991 to 2002. He stated that in 1991 the City employed 1,062 employees, compared to the present figure of 967. In addition, in 1992 the Parks, Recreation and Community Services Department had 90 employees, compared to 54 employees in 2002, even though the City has 31 percent more parks than in 1992. Ms. Pach on advised that the library gets some of their money from state library monies, which have been significantly reduced this year, with an even greater reduction predicted for next year. Therefore, in order to balance the library budget they had to take a reduction of approximately $195,000. City Attorney Penman advised that for some time there have been discussions at City Hall and the Library Board relative to submitting to the voters for their consideration whether or not they would be willing to support a library tax to help fund the library, such as the cities of Pasadena and Moreno Valley have done . He noted that it would not pay the full amount of the budget and would take a two-thirds vote under Proposition 218 to approve it. He stated that some cities have approved it on the first vote, others have approved it on a second or even a third vote; however, he did not know whether the Council wanted to put such an item on this November's ballot or not. Council Member/Commissioner Estrada stated that during the town hall meetings she hoped the Council members would receive input from their constituents and residents on how to address these growing needs. She stated that it was possible the City might end up with more than one proposed tax at some future election-that she would hate to start discussion on any one of these potential tax ideas at this stage of the game, even though she knows that in order to put anything on the ballot there is a timetable to adhere to. Ms. Estrada stated that first, the community needs to be educated on the fiscal condition of the City, and then bring them along in terms of the solutions on how to address those needs. She added that although libraries and Little League and all these things are very, very important issues, the citizens need to be given an opportunity to prioritize as well, and she hopes this will come from the town hall meetings. 4 6/12/2003 Council Member/Commissioner Mccammack stated that at the meeting held Tuesday evening the majority of the attendees discussed in depth what would turn a city around so that the revenues would be there long term, and the discussion relied heavily on having the town improve its image, which has been the goal of this Mayor and Council for quite a few years. Eventually the discussion came around to the fact that everybody basically needs to take personal responsibility not only for their own property, but their next door neighbor's property, if the neighbor is not doing the job. The discussion circled around to the resultant increase in property values, which then in turn would increase the property tax that the City derives, etc. Although the Council member made an effort to bring the conversation back to what the residents would suggest doing to make the changes necessary to balance this year's budget, no one was really interested in stepping forward and proposing to cut this or increase that. Mayor Valles stated that the point made by Mr. Penman was a valid one-that all these mandated costs by the federal government and by the state government fail to realize that it's at the City where we take the cut and it's at the City where we create the economic engines for the country. She stated that she has learned that development and owners come to cities that show a commitment to libraries, to the arts, to children, and to activities for children; therefore, she felt validated because the City is on the right track. Council Member/Commissioner Longville pointed out that Assembly Bill 1412 recently passed through the Assembly, with most legislators signing on (both Democrats and Republicans), and she believes it will move through the Senate. The bill would allow, by a simple majority vote, for a city to increase sales tax one-half percent as long as it is going for the General Fund, but would require a two-thirds vote if it is going for a special fund. She noted that if it gets to the governor's desk and is signed, the voters will then have to make this choice. Police Chief Zimm.on -Overview of Preliminary Police Budget Garrett Zimmon, Chief of Police, provided an overview of projected Police Department expenditures for fiscal year 2003/04. He stated that some of the larger increases to expenditures were the result of increased Worker's Compensation expenses, Charter Section 186 projected cost increases, and the PERS costs, which are being passed on by the State to the department. He pointed out that during the mid-year budget review it appeared that the Police Department would be about $360,000 in the red; however, due to cost controls within the department they have reduced that amount down to zero, or even a slight surplus for the department. 5 6/12/2003 2. Set public hearing -Resolution adjusting various fees -June 30, 2003 Mayor/Chairman Valles advised that the information relative to the adjustment of fees was included with the Interoffice Memorandum from Fred Wilson, City Administrator, to the Mayor and Common Council dated June 12, 2003, regarding Budget-Balancing Options, which had been delivered to the Mayor and Council and other staff immediately prior to this evening's meeting. Council Member/Commissioner Suarez made a motion, seconded by Council Member/Commissioner Estrada, that the Mayor and Common Council set a public hearing for Monday, June 30, 2003, at 6:00 p.m. in the Economic Development Agency Boardroom to consider adjusting various fees. The motion carried by the following vote: Ayes: Council Member/ Commissioners Estrada, Longville, Derry, Suarez, Mccammack. Nays: None. Absent: Council Members/Commissioners McGinnis, Anderson. Prior to adjournment, Council Members/Commissioners Estrada and Mccammack announced the dates and times of the upcoming town hall meetings in their wards. 3. Adjournment At 8:01 p.m. the meeting adjourned. The next joint regular meeting of the Mayor and Common Council and Community Development Commission is scheduled for 1:30 p.m., Monday, June 16, 2003, in the Council Chambers of City Hall, 300 North D Street, San Bernardino, California. No. of Items: 3 No. of Hours: 2.25 6 By : RACHEL G. CLARK City Clerk k E ~ Linda E. Hartzcl Deputy City Clerk 6/12/2003