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HomeMy Public PortalAboutMinutes - 2003/05/12 - Special1 CITY OF TEMPLE CITY CITY COUNCIL, COMMUNITY REDEVELOPMENT AGENCY, FINANCING AUTHORITY SPECIAL MEETING — BUDGET STUDY SESSION MINUTES MAY 12, 2003 1. CALL TO ORDER Mayor Vizcarra called the City Council Special Meeting Budget Study Session to order at 7:40 p.m. in the Council Chambers located at 5938 Kauffman Avenue, Temple City. The City Council also presided as the Community Redevelopment Agency and the Financing Authority. 2. ROLL CALL PRESENT: ABSENT: ALSO PRESENT: Councilman- Arrighi, Capra, Wong, Zovak, Vizcarra Councilman -None City Manager Cole, City Attorney Martin, Parks and Recreation Director Burroughs, Community Development Director Dawson, City Clerk Flandrick, Senior Management Assistant Flod, Financial Services Director Maldonado, Public Services Director Stroud 3. PUBLIC COMMENTS — None 4. PROPOSED BUDGET - FISCAL YEAR 2003 -2004 City Manager Cole presented the proposed budget for fiscal year 2003 -2004 which was distributed to Council on April 24, 2003. City Manager Cole reviewed his budget message with a power point presentation, summarized below. A. BUDGET MESSAGE City Manager Cole stated a potential major impact on the budget is the state's shortfall in its own budget. At risk is the Vehicle License Fees (VLF) which amount to approximately $2M of the $7M of the General Fund. Although the state will likely not adopt its budget until October or November, it currently appears as though the VLF impact will be minor. Nevertheless, staff has proposed a conservative level of expenditures. In the past two years, the City has been able to make significant progress in the important areas of upgrading and replacing fixtures and equipment (including the City's technology base). After several years of slowdown in the Capital Improvement Program (CIP), projects have been vigorously pursued in this current fiscal year. The focus will remain on completing the remaining CIP projects approved in prior years. Even with the downturn in the general economy and the budget difficulties faced by the State, the City continues to realize an estimated surplus from operations in the General Fund for fiscal Year 2002 -2003. The City's unreserved General Fund balance as of June 30, 2003 is $15,693,667. B. REVENUES /EXPENDITURES City Manager Cole reviewed estimated revenues and expenditures for the upcoming fiscal year. The expenditures included $100,000 for the Facade Improvement Program, proposed to be funded from the one time General Fund reserve. Overall, the budget proposals from the City's five departments do not contain any major changes in program activities. Management Services Department One significant increase in this department is attributed to the salary adjustment to Councilmembers effective April 1, 2003 ($10,800). In fiscal year 2003 -2004, a municipal election is not anticipated which will result in a decrease of $41,320. Medical, dental and vision insurance costs continue to rise and are estimated to increase by $54,000 over last Special Meeting — Budget Study Session Minutes May 12, 2003 Page 2 fiscal year's rates. Actual rates for calendar year 2004 will be set by CaIPERS in September. Financial Services Department There are no significant increases in requested expenditures in this Department for fiscal year 2003 -2004. Community Development Department Because of the successful Facade Improvement Program, it is proposed to moderately increase the amount budgeted for part-time positions. In other areas, the Department's request for this fiscal year has decreased. It was proposed Council renew the contract with The Gilpin Company for an additional year for economic development services. With Council approval, the cost of $100,000 would be added to the budget from the one time General Fund reserves, resulting in a decrease in expenditures in this Department's account number 4231. The Facade Improvement Program participation will require a budget amendment in fiscal year 2002 -2003. For fiscal year 2003 -2004, it was proposed funding the base Program in the amount of $100,000 from one time General Fund reserves. Also an additional $100,000 (for a total of $200,000) is proposed to be appropriated from the one time General Fund reserves. Parks and Recreation Department As community participation in programs and classes continues to rise, it was proposed to continue the expansion of the Summer Concert Series by two new paid bands and an Overnight Camp Out. Additional part-time hours were requested to ensure adequate supervision and coordination of these events. The City will continue to contract with its Dial -a -Ride contractor, whose contract provides for a Cost of Living Increase (COLA) of $10,320 in this fourth year of the contract. The Council also authorized an increase in the subsidy for residents purchasing bus tokens and passes at City Hall, which will amount to $18,445. This cost is offset, in part, by revenues generated by pass and token sales. Public Services Department The Law Enforcement Program continues to be the single greatest increase in General Fund expenditures. The proposed costs for fiscal year 2003 -2004 are $2,592,585, an increase of 3.55 %. In fiscal year 2002 -2003, the City engaged the services of six additional deputies (two Special Assignment Deputies, one Crime Prevention Deputy, one Youth Resource Deputy, and two Motorcycle Officers). With the expiration of almost all of the Federal and State grants used to initially fund the additional deputy positions, these costs are now borne by the General Fund in an amount estimated at $626,615. The only remaining grant is the State COPS Grant (Brulte), which is set to expire in fiscal year 2003 -2004. With the expiration of the grants, the costs of supplemental law enforcement services (amount above the basic law enforcement contract) not attributable to the General Fund will continue to rise each year. One motorcycle officer and one community services officer position are now vacant. Animal Control Division While the San Gabriel Valley Animal Control Joint Powers Authority (SGVACJPA) has not yet announced the increase in costs for fiscal year 2003 -2004, staff has estimated a 5% increase ($2,825). It was also proposed that Council authorize the payment of the accrued costs for fiscal year 2001 -2002 and 2002 -2003 (approximately $4,316). These costs are 1 Special Meeting — Budget Study Session Minutes May 12, 2003 Page 3 1 attributable to a cost of living adjustment granted by the JPA Executive Board, but not approved by the City Council. Parking Administration In fiscal year 2002 -2003, Council approved the purchase of new parking citation processing software, which will bring the process in house effective July 1, 2003. Graffiti Abatement It was proposed to add $5,000 to the graffiti abatement contract to ensure adequate funds to respond promptly to and remove graffiti from all buildings in Temple City. NON - GENERAL FUND ITEMS Liohtina and Landscape District As mentioned to Council last year, the Lighting and Landscape Assessment District can no longer support 100% of the historical costs of maintaining the landscape facilities within the district. This year, it was proposed that the General Fund provide a $161,300 transfer in to the district (General Fund subsidy). The Council will be asked to determine if an Assessment District election should be called asking for a modest increase in the assessment rates. Absent such an increase, Council would need to determine if landscaping services should be reduced or the General Fund subsidy continued indefinitely. Vehicles and Equipment The amount of vehicles and equipment proposed for fiscal year 2003 -2004 has been reduced to $122,520 (reduction of $43,265). Capital Improvement Program Of the $3,452,025 in proposed projects, $2,035,225 are funds carried over from fiscal year 2002 -2003 to complete projects either in the process or to begin in 2003 -2004. Only three new CIP projects funded by the General Fund are proposed for fiscal year 2003 -2004 for a total of $120,000. In addition to these funds, staff is also proposing $220,787 in General Funds to fund projects from prior years. The three new projects are: Pavement Management Study ($25,000 estimated cost); Flaherty Street Storm Drain Improvements (($250,000 estimated cost); and NPDES Catch Basin Screens ($5,000 estimated cost). SPECIAL ITEMS City Council action was requested for the following special items for inclusion in the adopted budget for fiscal year 2003 -2004, as these items represent significant changes in programs. Staff presented information on the following items and responded to questions from Council. Council discussed the items with the resulting actions as noted below. Revenues 1) Implementation of a Returned Check Fee Councilmember Arrighi moved to approve a $10 returned check fee applicable to all returned checks, seconded by Councilmember Wong and unanimously carried. 2) Business License Background Check Fee Mayor Pro Tem Zovak moved to increase the background check fee to $70 per hour to collect the full cost charged by the Sheriff's Department to perform this background check, seconded by Councilmember Arrighi and unanimously carried. Special Meeting — Budget Study Session Minutes May 12, 2003 Page 4 AB 939 Fee (Solid Waste Fee) City Manager Cole recommended this item be brought back to Council with suggestions where the funds may be spent after the budget is adopted. Council concurred. Expenditures Membership costs in the California Redevelopment Association (CRA) were proposed to be brought back to Council on May 27th when those costs will be known. Mayor Pro Tem Zovak also requested reference and comments from other cities, as well as the last two CRA journals, be included. 1) Contract for Codification of the Municipal Codes Councilmember Arrighi moved to approve contracting out the ongoing codification of the City's Ordinances into the City Code with website access, at a cost not to exceed $12,000, seconded by Councilmember Wong and unanimously carried. 2) Coalition for Practical Regulation Ongoing Litigation Councilmember Capra moved to approve membership in the Coalition to join in the litigation against the Regional Water Quality Control Board disputing the renewed National Pollutant Discharge Elimination System (NPDES) permit, at an annual cost of $15,000, seconded by Mayor Pro Tem Zovak and unanimously carried. 3) Proposed Sports Camp Program Mayor Pro Tem Zovak moved to approve the proposed Sports Camp Program at an annual cost of $1,997, seconded by Councilmember Arrighi and unanimously carried. 4) Continued Economic Development Activities Councilmember Arrighi moved to approve renewal of the contract for economic development services with The Gilpin Company for an additional year from the one time General Fund reserves at a cost of $100,000, seconded by Councilmember Capra and unanimously carried. Mayor Pro Tem Zovak also requested additional information be provided to Council to give them a better understanding of what is being done. 5) Continue the Facade Improvement Program Councilmember Capra moved to continue the Program with an appropriation from the one time General Fund reserves at an annual cost of $200,000, seconded by Councilmember Wong and unanimously carried. 6) Law Enforcement Positions Mayor Pro Tem Zovak moved to continue the Youth Resource Deputy position in the fiscal year 2003 -2004 budget, at the "Grant Funded Rate" of $116,275, seconded by Councilmember Wong and unanimously carried. Mayor Pro Tem Zovak moved to not fund the second Motorcycle Officer and the Community Services Officer in the fiscal year 2003 -2004 budget, seconded by Councilmember Wong and unanimously carried. 1 1 1 Special Meeting — Budget Study Session Minutes May 12, 2003 Page 5 City Manager Cole stated the proposed budget will include the $20,000 technology information fund, and information will be brought back on the 27th regarding membership in the L.A. Chapter of the League of California Cities and the salary plan. Non Economic Policy Issues 1) Inventoried Fixed Assets Mayor Pro Tem Zovak moved to approve the accounting capitalization process of inventorying items valued at $500 or more, and eliminating the inventory process, seconded by Councilmember Capra and unanimously carried. 2) Travel and Training Authorization Council directed staff to bring back a list of all training and travel proposed in fiscal year 2003 -2004 for consideration of approving this travel through adoption of the annual budget and eliminating the requirement of also placing the travel request on the agenda for approval. The Capital Improvement Fund projects were discussed (page B -10 of the budget) resulting in the following action: Mayor Pro Tem Zovak moved to remove the Parking Permit Machine item from the proposed Capital Improvement Fund account at a cost of $20,000, seconded by Councilmember Wong and unanimously carried. City Manager Cole stated all other proposed capital improvements funded out of the General Fund would be held in abeyance until the effects of the State budget were known. Councilmember Arrighi moved to tentatively approve the proposed budget for fiscal year 2003 -2004, seconded by Councilmember Wong and unanimously carried. 5. ADJOURNMENT The City Council adjourned at 10:07 p.m. to Tuesday, May 27, 2003 at 7:30 p.m. ATTEST: %.ate 2 , 4,,1 i.) City Clerk s ayor