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
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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
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May 12, 2003
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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.
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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.
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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:
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City Clerk
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