HomeMy Public PortalAbout04) 7A3 MIN - 2012-03-08CITY COUNCIL
TEMPLE CITY, CALIFORNIA
SPECIAL MEETING -STUDY SESSION MINUTES
MARCH 8, 2012
1. CALL TO ORDER
AGENDA
ITEM 7.A.3
Mayor Pro Tern Yu called the City Council Special Meeting to order at 7:03 p.m.
in the Council Chambers located at 5938 Kauffman Avenue, Temple City.
2. ROLL CALL
PRESENT: Councilmember-Bium, Sternquist, Vizcarra, Yu
ABSENT: Councilmember-Chavez
ALSO PRESENT: City Manager Pulido, City Attorney Vail, Public Safety Officer
Ariizumi, Parks & Recreation Director Burroughs, City Clerk
Flandrick, Accountant Ma, Community Development Director
Masura, Accountant Specialist Zamora
Councilmember Blum moved to excuse Mayor Chavez for cause , seconded by
Mayor Pro Tern Yu and unanimously carried .
3. PUBLIC COMMENTS -None
4. NEW BUSINESS ITEMS
City Manager Pulido stated staff would provide an update on five items for Council's
review. An overview of the mid-year budget will allow Council the opportunity to
make recommendations for changes before the April 3 City Council meeting. Staff
and the Budget Ad Hoc Committee worked together to form general parameters for
the Budget Reserve Policy. A proposed ordinance will be reviewed to enact
changes to the code regarding economic development in light of the dissolution of
the Community Redevelopment Agency. The Council will also review a proposal
from PARS regarding pension obligation. Finally, Council will be presented with
design options for the Chamber renovation which may require a budget
amendment.
Staff presented information on the following items and addressed Council's
questions .
A. MID-YEAR BUDGET REVIEW UPDATE
Accountant Ma presented a review of the mid-year budget document
covering the period of July 1 through December 31, 2011 . Fiscal Year
2011-12 General Fund revenues and expenditures were reviewed. The
City Council Minutes
March 8, 2012
Page 2
total General Fund Mid-Year Budget adjustments (increase in revenues)
were $327,700, increasing the estimated General Fund Balance from
$21,425.012 to $21,752,721 .
The City Council concurred there were no changes to the Mid-Year
Budget.
B. BUDGET RESERVE POLICY
Accountant Specialist Zamora provided a re-cap of her staff report,
providing a background analysis of the proposed Budget Reserve Policy
to be adopted by ordinance . Budget reserve options were provided for
Council's consideration containing minimum and maximum targets for
reserve funds and identifying how such funds would be classified . The
City Council was requested to provide direction regarding funding
amounts for each category and classification.
Council discussed the three options .
RECESS/RECONVENE
The City Council Special Meeting was recessed at 8:13 p .m. and
reconvened at 8:24 p .m. with all Councilmembers present , except Mayor
Chavez.
Council concurred to refer this item to the Budget Ad Hoc Committee to
meet with staff and come back with a recommendation for the City
Council.
C . ECONOMIC DEVELOPMENT ORDINANCE
City Manager Pulido presented a draft ordinance adding a chapter to the
City's Municipal Code authorizing the expenditure of City funds for
economic development purposes. This would allow the City to engage in
economic development activities following the dissolution of the
Community Redevelopment Agency. The authorized activities included in
proposed Section 2951 were reviewed, which would legally allow the City
Council and staff to take on economic development responsibilities . With
no objections from Council, City Manager Pulido indicated this ordinance
would be brought back in April or May for adoption .
City Council Minutes
March 8, 2012
Page 3
D. PENSION OBLIGATION OVERVIEW
Accountant Specialist Zamora reviewed her staff report, stating in 2004,
the Government Accounting Standards Board issued Statement No . 45
which established standards for the financial reporting by employers of
postemployment benefits other than pensions. The City currently finances
its Other Post Employment Benefits (OPES) plan on a pay-as-you-go
basis at an annual rate of $142,938 . As a result, current financial
reporting fails to:
1) Recognize the cost of benefits when services are received by the
employee;
2) Provide information about the actuarial accrued liabilities for promised
benefits; and
3) Provide information useful in assessing potential demands on the
employer's future cash flows .
In order to accurately account for these benefits , it was proposed to set up
a reserve fund to set aside monies to meet the OPES obligation. The
Actuarial Valuation Report completed by Bartel Associates provided
options for investing funds in an acceptable and safe manner with an
outside agent. The Public Agency Retirement Services (PARS) provided
a Proposal for Services to undertake the task of administering the Trust
Fund for the City's OPES program . The Public Employees Retirement
System (PERS) also offers a program which may be considered, or City
staff could look into other agencies for this investment purpose.
Mayor Pro Tern Yu stated he would like to schedule a study session to
review the actuarial report provided by Bartel Associates. Council
concurred.
E. CHAMBER RENOVATION
Public Safety Officer Ariizumi provided a power point presentation of the
draft design recommended by the Chamber Renovation Ad Hoc
Committee and reviewed the project scope . There is $150,000 in the
current budget for the renovation. Proposed design elements were
reviewed and discussed . Council directed staff to meet again with the Ad
Hoc Committee and approved a budget amount not-to-exceed $250 ,000 .
Councilmember Vizcarra asked the Council to consider adding the
expansion of the dance floor at the Gazebo in Temple City Park to the
Mid-Year Budget. Council discussed this item with consensus for the Mid -
City Council Minutes
March 8, 2012
Page4
Year Budget to remain the same with no changes and to further consider
this item at a later date, including possibly incorporating some of design
themes of the Rosemead Boulevard Project.
5. ADJOURNMENT
The City Council Special Meeting was adjourned at 9 :46 p.m. to the City Council
Regular Meeting of Tuesday, March 20, 2012 .
Mayor Pro Tern
ATIEST:
City Clerk