HomeMy WebLinkAboutMinutes - City Council - 2003-06-30 - Special Meeting
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City Council, Special Meeting
Community Room
777 Cypress Avenue
Redding, California
June 30, 2003, 10:00 A.M.
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The meeting was called to order by Mayor Cibula with the following Council Members
present: Kight, Mathena, Pohlmeyer, and Stegall.
Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Fuller,
Deputy City Manager Starman, Electric Utility Director Feider, Development Services
Director Hamilton, Administrative Services Director Bachman, Police Chief Moty, Fire
Chief Fry, Support Services Director Kersten, Community Services Director Niemer, Finance
Officer Strong, and City Clerk Strohmayer.
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RESOLUTION ADOPTING THE 2003-2005 BIENNIAL BUDGET
(B-130-070)
Budget Overview
City Manager Warren provided an overview of his budget message explaining that as a full
service City which provides a variety of enterprise funds such as water, sewer, convention
center, two airports, solid waste, etc., the budget is much more comprehensive and
complicated. Mr. Warren related that the general fund portion of the budget comprises
general government services such as police, fire, finance, city clerk, city treasurer, and city
manager departments. Mr. Warren referenced other funds contained in the budget such as
the Community Development Block Grant (CDBG), Capital Improvement Fund, Traffic
Impact Fee, and Parks-In-Lieu Fund. Mr. Warren explained that the City utilizes Ten-Year
plans for all expenditure and revenue funds, and revenue assumptions are based on realistic
and conservative projections and predictions. The revenue projections also take into account
the state budget. The 2003-04 budget totals $196,588,680 while the 2004-05 budget totals
$200,031,620. The general fund budget proposes $52,436,800 for fiscal year 2003-04 while
the 2004-05 general fund budget totals $56,503,250. The general fund increases are
primarily due to police, fire, and personnel. The projected general fund reserve balance is
17.7 percent for 2003-04 and 10 percent for 2004-05.
In terms of personnel, Mr. Warren stated that there is a net increase of seven positions
recommended for 2003-04 and an additional two positions in 2004-05. Mr. Warren
emphasized that the net addition of nine positions over the two-year period is about one-half
of one percent annual growth in the City's workforce. There are approximately 750 full time
and another 250 part time employees. The new positions do not include two police officers
the City hopes to fund through the Federal Universal Hiring Grant.
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While the proposed budget is essentially status quo, Mr. Warren touched on other noteworthy
areas including $75,000 per year earmarked for an economic development consultant,
$100,000 each year for purchase of open space, $200,000 per year for right-of-way
acquisition, $50,000 per year for art-in-public-places, 1.5 positions for parks maintenance,
$300,000 for fire contract services at the Redding Municipal Airport which will allow fire
personnel to be transferred to the new fire station under construction, $150,000 per year for
future replacement ofthe public safety 800 MHz radio system, $155,000 for short term repair
options at the Downtown Mall, and funds for the 55 projects upon which the City is
embarking.
Unfunded needs include: library funding beyond 2004-05, Riverfront Playhouse assistance
and development of a theater district, recommendations from the Zucker Report associated
with Development Service's planning and permit center activities, increased public safety,
and land acquisition for Redding Municipal Airport runway approach protection. In addition,
a portion of the utility increases which may be recommended by the ad-hoc committees are
also not planned in this budget.
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City Manager Warrt(n identif1ed six (6) major budget issues which may require City Council
discussion apd further recOlnmendat~on: ,state budget crisis resulting in $450,QOO of
decrease4 funding from the ~tat~, plarwing fees, fire ~nspectioIl fees, parking meter fees,
Turtle Bay l\1;useum . & Explora,tion P,ark (TBM) funding, and street mainte~ance.
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Mr. Warren expl~ined that there is $400,000 designated for Turtle Bay Musem for 2003-04
but zero QudgetedJor 2Q04-05. However, an~t4er $400,000 is in the Ten-Year plan that
could be earmarked for TBM, Ubratj, street m~intenance, etc. He suggested the City Council
discuss whether to. maky a. commitmel1t to set a~ide additional funds for TBM contingent
upon financial r~view' ~nd positive r~commendation, or consider the issue one year at a time.
In acknowledging $30 millioQ. of u.n~nded street maiQ.tenance needs with $1.7 million
available in this two-year budget, Mr. Warren outlined ~ome possible revenue sources to
fund stret(t maintenance as follows: Redevelopment funds, addition of a road maintenance
component to the i~p'act fee, increase revenue so.urces suchas sales tax or property tax, and
require cqnst~ction of better roads initially, particularly in new sUQdiv~sions.
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Budget Summary
City l\1;anager Warren ()bserved that the City's financial situation is better than most with a
strong e<;onomy in Redding, unemployment,is down, the community looks nicer than before,
con~truction indu~try is good ~n4 retail sa,les 90nt~nue to increase at a very high level, and
even though the Transient QccupancyTax (TOT) is down throughout Calif01llia due to 9-11,
Redding's TOT is faring quite well. Redding experienced quality growth and the potential
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for better-paying jobs w~tp th~ impeqd.ing V eterans ~ H!Jme and Stillwater ~ndustrial Park.
Mr,. W arreq ~it~d the M~. Shasta l\1all ~p.4l;31ue S~i.e~d as examples of th~ City deveJoping
strong busilless pa!-1neJ.'~hips. ~ven if-the Gity t\ak~s an()t~er state budget hit, he said the City
will stPI be better offQec,aus~ the hit;will qe propqrtional. ,Mr. Warren credited City Council
for the City's good fis~al health th,ro,ugh the estaQliShment of sound financial plans and
polici~s. He, touted the ten-yt(~ plans and a revenue-driven budget as solid examples of
prudent planning which ins~res a healthy community ~nd, in turn, creates a strong economy.
Mr. Warren concluded that due ,to long-range financial planning, the City is not in the poor
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financial condition that many Califon~ia cities are expe~encing.
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Citizens Committee Comments
City Manager Wan-en introduced ancl thanked Ginne Mistal and Deann~ Parker, who served
on the ci~izens' budget review committee.
Ms. Mistal thanked the City for the opportunity to serve on the Citizens Budget Review
Committee and was appreciative of gaining a better understanding and grasp of the City's
operatjons, mission, and goals. She compliment~d the City Council and administration for
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their proactive approach in financial planning ancl, for placing the City in a financially-secure
environment but expressed concern abOl.lt ~he significant PERS increase. Ms. Mistal saw
significant value in taking tour~ of City facilities ;md reco~mended that they be required of
future committee members in order to help bring them up to speed more quickly. During the
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tours, Ms. Mi~tal .observed, declicated employees who were committed to their jobs. Ms.
Mista~ described the rolling itockp~qgram ,as .~ excelJent ~ethod of keeping up with
changing vehicles on a regulaJ;' b,asis,and hoped that this cOl)cept could be extended to the
City's technology. . She also urged the City Council to endorse the proposed t,hree-tiered
pricing at the Redding Conventiqn (~enter noting that it will be beneficial for non-profit
users. . As a business owner, Ms. Mi~tal prefetred that fees be reviewed annually rather than
every four years b~caus~ it would r~s\llt in smaller incremental increases which are more
palatable. On the issue of subsidizing development, Ms. Mistal was of the opinion that the
building industry is in the' position of bearing their: fair share of infrastructu,re costs,
particularly rQad improy~ments, and spe hoped tpe. City Council would strongly cqnsider
changing this funding methodology. Refe1,'en(;ing Council Members Mathena and Stegall as
sitting in on this process, she r~commend~d that a member of the City Council participate
in future budget reviews because their insight a!ld a&sist~ce is extremely helpful. Finally,
Ms. Mistal expressed conCern about a firt( station being located adjacent to the Alzheimer
facility and the noise impacts of the fire alarm on its occupants. She feared this could
becom~ a public relations problem.
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Deanne Parker expressed gratitude for the experience and the opportunity to serve on the
budget review committee. Sh~ thought the process was professionally run and staff was
always well prepared during their presentations. While time consuming, she also described
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the tours of City facilities as very beneficial and recommended they remain part of the
process. During the tours, Ms. Parker also found City employees to be enthusiastic and
dedicated. She was complimentary of the ten-year plans and revenue-driven budget. Ms.
Parker commented, from her perspective, on the following key areas of the budget: 1)
Growth-the ability for the City to address growth issues through planning fees, development
impact fees to pay for roads, sewers, and other infrastructure. As the City grows, she said
spreading the costs to developers is paramount. She lamented that the detrimental impacts
of rapid growth and increasing infrastructure demands underscore the need for the City to
address raising revenues to pay for the needed infrastructure. 2) Ms. Parker expressed
concern with the 20 percent increase for public safety personnel and benefit costs while
remaining personnel costs increased an average of 3.5 percent. 3) The need for additional
marketing to attract other airlines with destinations to places such as Los Angeles, and the
need to review possible increase of airport revenues; i.e., hangars, fuel tax, and non-aviation
activities. 4) The need to explore other revenue sources such as increased sales tax to cover
increased costs of providing City services.
City Manager Warren commented that the City has applied for a $500,000 grant that would
enable Horizon Airlines to offer a direct flight to Los Angeles.
Ten- Year Plan and Overview of General Fund Revenue & Expenditure Assumptions
Administrative Services Director Bachman highlighted the ten-year financial plan stating that
the ending cash reserve for fiscal year ending 2003 is 20.8% and dips to 5.1 % in 2007 -08 and
will start ramping up again. Mr. Bachman explained the reason for the dramatic dip is
increased costs in PERS Retirement Plan, workers compensation, and medical insurance
which have been programmed in the plan using a three percent growth factor.
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Mr. Bachman detailed the following revenue assumptions: Property tax, sales tax, transient
occupancy tax, other tax revenue, licenses, permits, fines and penalties, and services charges
will increase by 4 percent per year; motor vehicle in-lieu fee revenue will increase by 6
percent per year; 7) Revenue from other governmental agencies will increase by 3 percent;
and revenue from internal departments and other revenue will increase by the rate of
inflatIon.
Mr. Bachman reviewed the following expenditure assumptions: Personnel costs will increase
by 3 percent; personnel costs are increased by between $50,000 and $200,000 to provide for
new positions to keep up with workload increases; operating and capital costs will increase
3 percent per year; operating and material costs will increase by 2 percent in 2006-08 and by
3 percent ending 2009-13; the additional $250,000 expected for additional library funding
if a new library is built is not included in the Ten Year Plan. If the new library is built,
funding will have to come from existing programs or increased revenues; $400,000 is
included in each year of the Ten Year Plan earmarked for either Turtle Bay Museum or some
other project Council may choose; and PERS rates are expected to decrease in fiscal year
ending 2006 and return to normal cost rates in fiscal year ending 2007.
Mayor Cibula commented that if the City is successful with the library grant, he would like
to see continued funding built into the ten-year plan as soon as the City is notified.
Relative to Turtle Bay Museum funding, Mr. Bachman recommended providing funding this
year and revisiting future funding in the spring following a performance evaluation, and staff
would make a recommendation at that time. The funds would, however, be set aside and be
available in the event the City Council chooses to continue funding.
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Council Member Stegall stated that Turtle Bay Museum is becoming an important tourist
attraction with the ability to attract many visitors. Because the Convention & Visitors
Bureau is located on the same campus, she would like to explore the possibility of Turtle Bay
Museums and the Visitors Bureau working together by combining and sharing resources.
Ms. Stegall viewed Turtle Bay Museum as a prime candidate for Transient Occupancy Tax
(TOT) revenue and asked staff to explore this possibility. Mr. Bachman responded that
Community Services and Finance Division staff could examine whether it can be determined
that increases to TOT revenue are a result of drawing visitors to Turtle Bay Museum.
Administrative Services Department
Administrative Services Director Bachman provided an overview of the department budget
indicating that there are no personnel changes other than PERS, workers compensation, and
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group health insuranc~ inpreases. He said there is a $4.5 million increase City wide the first
year and an ':l~ditio!l(ll $5 million, tpe second year,' all related to these categories with the
1ar~est attributed to PERS.
Community Services Department
Community Service,s Directo.t: NieIf1er.r~l~ted that the departrpent's budget is status quo
while, towist promotion effot:ts have increased significantly in sophistication through
enhanced t~chno10gy. The Commullity SefVi,c~s q~dget includes recreation, park
development, Coriventi<,m Center, and the Vis,itors' Bureau. She said two noteworthy
increases relate tQ: 1) operation of the newly-renovated Aquatic Center with associated
increase,d expensesoffset with an inc~ease in progra~ revenues generated by that facility, and I
2) increased Tr~sient Occupa.ncy Tax (TOT) revenue w,hich has enabled the maintenance
budget at the Convention Center to move toward acceptable levels. Ms. Niemer explained
t4at in t~e early 1990's when TOT r~v~nues were pat and more ~fthe operations were being
subsidized by the TOT, it created significant maintenance issues'at the Convention Center.
To a~d.ress this prob~em, .~ capital, improvemer~t pla~ and maintenance program were
completed this year which, staff is ~onfident, will pJace the Convention Center in a better
position to incre~se revenues and ~nsure it~ viability. Ms. Niemer mentione9 numerous
projects the qepartment is embarking on in the next budget~ycle funded primarily with the
support of various community groups an~ grapts jncluding the Tiger Field renovation,
sev~al trails, bqat ramp, Caldw~ll Playground, C~~,d\y~ll Memorial Picnic Area, Teen Center
and Carter House renovations., She llo!ed th;1t thp pqpular art,s and elltertainment programs
with' the City Hall exhibits and Friday entertainment have been 'well received by the
co~munity.
Development Services Dep~~~nt
DeveloPITlent Se.rv~ct?s DirectQf fJ~i\t~Q. stated that th~ depart.ment budget for 2003-04
($5. 7 milli~n) ap.d 2004-05 ($6.3l)1illion), met its target which is $160,000 below fiscal years
20Q1-03 and includes ~me vacant p~sitiQn. Despite al st~tus quo budget, he said the
community is experiel'!,cing sigtfificant growth, development activjty is up 17 percent, counter
activity ha~ increased 27 percent,' anQinsp~ction ~ctivity is also growing rapidly. As a result
of City Council direction, Mr. Hamilton saig tpe department reorganized with the I
establishment of a permit ~ep.ter section. ~e department is attempting to maintain a
technology edge by overhauling its web site, an~ fun.ds have been budgeted for the
maintenance of technology systems. In 19~8, the plimning permit cost recovery was 15
percent and is presently down ~o ~.5 percellt, primarily due to more stringent environmental
review requirements necessitating more documentation. Mr. .H,amilton explained the
proposed measures to bring cost r~covery back up to the 15 percent level. Through
development, he said tota~ valuation increased by appro,xiIl1ately $178 million in the'las.t
year. The City recovers 'lPproximately 57 percent ofthe d~Partmellt' s costs which translates
to a 43. perceJ?t required subsidy in the proj~cte4 budget ye~r, and that subsidy amounts to 1.4
percent of the incr~ase in valuation. He said while the 401Ja~s seem large, they are relatively
sm~ll in exchange for ,a quali~y community anq; developmeI?t which is an excellent
investment. Mr. Hat.11i1tqn 3:lso highlighted tl1e Z~cker Report recommendations, as well as
some of the department'siupcQming'majorprojects incl~ding the Oasis Road Specific Plan
and master planning for 400 acres soud} ofR~ncQo Road ar4 west of Airport Road.
Electric Utility Department
Electric Utility Director,Feide.r stat~d that the two-year fisc~l budget is $97.2 million for
2003-04 and $99.4 million for 2004-05. The budget provides five aqditional positions of
which four are linemen to address the 50 percent i,ncrease in transmission lines and one
co~mputer programmer. Mr. Feider noted that nonew linemep have been a4ded since 1990.
He related that Redding Electric Utility's (REU),buqget is based on three basic par,ameters: I
1) providing quality and reliable s,ervice at areasonable cost, 2) maintaining adequate energy
supply ~nd infrastructure to deliver the electricity, as well as ~dequate staffing, and 3)
maintaining financial health through a4equate reven~es and rates in place to mai~tain the
credit worthiness of the Utility.
Mr. Frider highl~ghted (the fQll,?wing contemporary issues faying REU: 1) California
Independent System Operator (ISO) - By the end of2004, there will be a significant
cbang~ in resource supply. The ISO, an ever-changi~g complex orgaI).ization, is attempting
to spread its cost to others; ~owever, ,RED: is atte,mpting to maintain its independence from
the ISQ. Through political 'efforts, the Uti.1ity is trying to get ISO downsized but that effort
has not been sUGcessful thus far. 2) Natural gas volatility - The Utility has 50 percent of its
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natural gas needs for the next four or five years locked in at prices that fit within the rate
structure. 3) Deregulation issue - There is still much debate and uncertainty as well as
legislative and regulatory instability for the entire electric industry. There is a major energy
bill before the U.S. Congress that mayor may not have an impact on Redding, and there are
competing bills pending before the state legislature to end deregulation. 4) Renewable
resources - In addition to hydro-electric generation from Shasta Dam, the Utility will
aggressively pursue some solar projects in this two-year fiscal budget. $200,000 is budgeted
in the Public Benefits Program to explore a solar thermal project at the Redding Power
Plant, and the heat generated from that project would be used to augment the steam unit.
REU is also looking at funding solar on top of the new library when it gets further into the
design phase in addition to solar shade structures on the west side of the City Hall complex
and possibly other locations.
Mr. Feider noted that bond-funded capital projects included in the REU budget include the
Moore Road Substation expansion and Stillwater Industrial Park development.
Fire Department
City Manager Warren introduced new Fire Chief Duane Fry who addressed the new fire
inspection position and proposed associated fees, stating that 750 occupancies in the City are
required by State law to have an annual inspection, but the City has not been able to keep
pace with these inspections for quite some time. The occupancies include assisted living and
home care facilities, hotels, motels, apartment complexes, where life safety is a key issue,
and other facilities which handle hazardous materials. Mr. Fry explained that this program
is not a profit center but simply a fee to cover administrative costs and is separate and apart
from the regular business inspection program.
Mr. Becker clarified that the proposed fire inspection position is a union safety position that
requires expertise in technical fire inspections.
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General Government
City Manager Warren indicated that there are no issues for general government department
budgets which include City Council, City Manager, City Clerk, City Treasurer, City
Attorney, and Community Development.
Non-Departmental
Administrative Services Director Bachman reported that additional funds have been
budgeted for right-of-way/open space/land acquisition, and art in public places. Relative to
community special events, Mr. Bachman requested that the City Council assist Marketfest
with additional funds for increased insurance costs which have doubled and recommended
that another $5,000 per year be added to the non-departmental budget for this purpose.
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Municipal Utilities
Assistant City Manager Perry provided an overview ofthe Municipal Utilities budget stating
that under the current financial plan, the storm drain utility will be operating in the red within
three years. The Parking Fund is currently operating at a deficit, and Solid Waste is also
headed in the same direction without a rate increase. The City is presently at 39 percent in
its waste diversion and should be at 50 percent, while the waste stream has increased each
year. While the community has responded positively to the recycling and green waste
programs, another driver is needed on the routes and another driver is needed for hauling. In
2004-05, the department is proposing that the Solid Waste Division take over the street
sweeping program. Mr. Perry expressed concern about the Utilities' ability to stay ahead of
growth referencing an aging system with many lines in excess of 50 years. The budget
includes two new positions in Water Utility, and three new positions in Solid Waste. While
Mr. Perry acknowledged the City is significantly lagging in its road maintenance efforts, he
pointed out that it is not atypical in comparison with other cities such as Santa Rosa.
Another issue needing attention is the Parking Fund which has not had an increase in meters
for many years; and, consequently, he said the program is not paying for itself. Mr. Perry
advised that he will bring back several options for the City Council to consider that would
enable the City to recoup its cost for providing parking meter service.
Police Department
Police Chief Moty addressed his department's proposed budget and highlighted its
Community Safety Evaluation (C-SET) Program. In response to tremendous community
growth, he said the budget includes three new positions, one to be funded 75% by the
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Redding Area Bus Authority a~d two fu~ded thro"!lg~ the, Federal Universal Hiring grant. It
is anticipated that these positions will be kept beyond th~ life of the grants.
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Support Services DePartment
S~pport Service~ Director Ker~teJ1 a~dr~ssed safety concerns regarding the Downtqwn Mall
structure and, in the eventuality that the roqf is' remov~d, he said $155,000 is budgeted to
oply addr~ss safety issu~s. The P~rk Majntena,nce budget recommends two positions to
maint~in t~e Aquatic Center an.d Clover Cree15 .rres,erve, In re~po,~se to Councill\1ember
Math~na's question concerning the cost to m(;ljp,tllip, the Turtle Bay Pedestt:iaJ). Bridge
presently under cOI1structio~, ~r. ~erste~ e~timateq the annual costs to be approximately
$35,000. Fupd~ are not included in this budget cycle for maintenance ofthe bridge but will I
be included in th,e n~xt budget cycle. ' '.
PUBLIC COMMENT
(C-070-250-250)
Adam Prove~~x? teen volunteer for Turtle Bay Museum f<,>r four years, sp<?~e about the
benefits qf tpe tee,n volunteer pfograf!l at the, IyIuseum. adding that there is an amazing
number of teens wl:1o v91unte~r a( tp,e facility, which ha~ given him and other teens the tools
to be successful in life.' . . ..
,Pat C~bezud, volunteer f~r TUI1le :Bay Mus~um f<]r eight years, s.tated that volul}teers commit
their tjme to benefit this organi?-:ation to which they are extremely dedicated. She described
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the Museum as' a fantast~c resource wh,ich, she opined, citizens have come to expect for a
communityReddi~g' S size. Sh~ said one put qf 125peop,le i~ Redding volunteers at Turtle
Bay and encourag~.d oth~rs to get inyol~ed i.1l this iinportant resource. Ms'- Cabezud further
urged the City Council to continue funding t~~ ~~seum.
CITY COUNCIL DISCUSSION AND ACTION
City Manager Warren askeg f<?! City Council dire~tion on ~~e following budget issues: Turtle
Bay Museum second-year funding, fire inspection fees, planning fe~s, parking meter fees,
street m~inteIlaAce, anq the recommenqatiqn to in~rease funding for Mm:k:etfest by $5,000.
Planning fees
Although not opposed to planning cost rt;:covery fees in theory, Couq.cil Members Kig4t and
Pohlmeyer expressed the nee~ for more time to review this proposal.
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Fire inspection fees
Council Member Stegal,l supporteqthe implemep.tation, of a fire inspection fee and the
associated position because it targets ~ig~ life-hazard occupancy groups most vulnerable and
believed it is a sl11all pric~ to pay to J<:eep the City curr~p.t in this area. Council Member
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Pohlmeyer wondered if t~ere w~re altern':ltives to hiring more persollI1el in the Fire
Department such as a'retiree who might want to work in some capacity.
Parking meter fees
Concerning parking meter fees, Mayor Cigula was 110t convinced.raising the fees would
preserve the objective of s~rving the' citizens. Council Mep.1ber Stegall stressed the
illlPortance of conti,nu~lUs turn over ill parking ~eter use ~Q accom~odate customers and was
interested, along with ~ouncil Merp.ber Po~lmeyer, in further exploring this proposal.
Turtle Bay Museum funding
(C-070-250-250)
, Relative to continued f\1nding for Turtle Bay Museum (TBM), Council Member~ Kight I
indicated that while he support~d TBM from the onset, City Council's goal was to ultimately
terminate funding by rtrqucing contribut,ion, levels beginning with this year. Once the
ped,estrian bridge is completed, he said it is touted to be the solution to TBM's economic
wo~,s because it will attr~cf m~y visjtqrs. Council :tv1etpber Kigpt acknowledgedth~ l).eed
for funds but cited other/worthy community needs such as a ,theater district. He supported
cop.tinued museU,ITl f4nding bu,t a~ a'signifi'cantly reduced a~oun~ in t~e range of $150,00.0
as,he was concer,ned apout trye iriIpact to the general ~n9. In fairness to TBM, Mr. Kight
suggested City CounG~l offer afu~diing progra,m nQ\V~ ~~ notify TBM of the amount so that
they can plan for ~he out ye~!s but he recoI?~ended less t~~ that which is proposed.
Council Member P,ohlm~yer concurred adding th(;lt so~e years ago, very firm representations
were made to City Council that at this poitlt in time, TBM would be self-sufficient. He
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concurred with Council Member Kight that it is important to give TBM indication as to what
support might be forthcoming in the future. He said the City agreed to commit $250,000 to
. the library which, in his mind, would take away from what is earmarked for TBM. While
he acknowledged the museum's value to the community, he pointed out that it is simply a
matter of allocating limited resources. He suggested allocating $150,000 for the out years
and $400,000 for this year only. If there was a way to increase TOT as a result of the build
out ofTBM, he could entertain the possibility of increasing funding commensurate with that.
Mr. Pohlmeyer expressed concern about the impact of the state's budget crisis on local
government and stressed the importance of protecting the City financially through frugal
fiscal management.
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Council Member Stegall was desirous of funding TBM at the $400,000 level this year but
did not want to make a decision now concerning out years. She also did not want to give any
assurances by locking in $150,000 or any other amount pointing out that in the last six
months, visitor numbers have gone up. She alluded to the frustration surrounding the
delayed pedestrian bridge construction project but believed that, on balance, the museum will
be a strong economic boon for the community. She also reiterated her opinion that TBM
is a possible candidate to receive a portion of TOT funding and hoped Council would
consider making up the difference with TOT proceeds in 2004.
Council Member Mathena said that while it was difficult for him to give $400,000 to TBM
when there are pot holes needing repair, the importance of educating youth also tugged at
him. As one approach to this problem, he suggested exploring the feasibility of increasing
the TOT to assist TBM. Mr. Mathena concurred with providing $400,000 this year only and
not commit to further funding until the results ofTBM' s performance are known for the next
year.
Mayor Cibula supported approving $400,000 this year and leaving options open for further
funding until after information is received in the Spring regarding TBM's performance and
business plan.
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City Manager Warren recapped City Council's comments stating his understanding that
Council would like staff to have discussions with the Hotel/Motel Association regarding the
shifting of a portion of TOT revenue to TBM.
Council Member Kight clarified his preference for supporting $400,000 this year, plugging
in a line item for 2005, and putting a cap on general fund monies for future years.
Council Member Pohlmeyer preferred to reserve $400,000 in the Ten-Year plan that is not
project specific but could be used for several purposes such as the library.
Street maintenance funding sources
(S-070-200)
Council Member Kight inquired as to the status of the committee appointed by the City
Council last year to examine a .25 cent tax increase earmarked for public safety and whether
it was appropriate to consider including street maintenance for possible use of those funds.
Administrative Services Director Bachman advised that the committee declined to broaden
its scope to include streets. If the Council is interested in going forward with a sales tax
increase, legislation was passed for general municipal services allowing for a simple
majority, and one idea would be to have a second measure on the ballot which would be
advisory posing the question to the electorate of how the money should be spent.
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Council Member Pohlmeyer thought the City should continue exploring this concept and see
what can be produced to allow the City to catch up the backlog of street and road
maintenance and improvements.
Mr. Bachman also referenced state law which would allow counties and cities within their
respective jurisdictions to jointly place a special gas tax measure on the ballot that could pass
with a simple majority vote. Council Member Mathena noted that he asked staff to explore
other creative ways to finance roads such as a one-cent tax per gallon of gasoline which
would generate significant revenue for this purpose. He was disappointed that the proposed
budget did not earmark more funds for roads, and he added that the City needs to revisit
impact fees.
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Mayor Cibula wondered if imposing a gas tax would jeopardize Redding's status as an 1-5
stop.
Council Member Stegall thought the concept of a gas tax was worth exploring as well as a
sales tax increase. She concurred that the development impact fee issue needed further
addressing as well as enhanceg roads in subdivisions.
City Manager Warren, explained that the enhanced roads concept entails more stringent street
development requirements in s\}bdivisions that result in minimal maintenance and added that
. . .... " .' ... .~\" .
staff could arrange meetings with subdivi~ion developers to discuss this idea. He said staff
will incorporate Cou,ncil's ideas in qeveloping possible solutions for funding street I
maintenance.
Mayor Cibula acknowledged Ms. Stegall's suggestion that a committee to review this issue
in a broader context could be beneficial.
RESOLUTION - Adopt~ng the bienniaJ bl.!dget for fiscal years 2003-04 and 2004-05
City Manager recommend~d t~at ~he City Cou~cil adopt a resolu~ion adopting the biennial
budget for fiscal years ending June 30, 2004 and Jut:le 30, 2005, iqcrease funding for
Marketfest in the amount of$5,000; graI?-t an additional $400,000 in funding to Turtle Bay
Museum & Exploration Park for 2003-04; authorize staff to bring back a recommendation
for planning, fire inspection, ~nd parking. I1leter fees for Council's consideration; and
authorize staff to explore vapous funding mechanisms f~r s~reet maintenance.
MOTION: Maqe. by Coun~il MemberPqhlmeyer, ~econded by Council Member Stegall
adopting Resolutiqn No. 2003-103 aqopting and approving the Biennial Budget for fiscal
years ending June 30, 2004 and 2005, with the modification of increasing funding for
Marketfe~t . by $5,000 and granting an adqiti~nal' $400,000 ~o Tu~le Bay Museu~ &
Exploration Park for ~003-04; directing staff to bring back additional information relative
to planning, fire inspection, and parking meter fees for Council's consideration; and
authorizing staff to explore various funding mechanisms for street maintenance.
The Vote: .
AYES: Council Members - Kight, Mathena, Pohlmeyer, Stegall, and Cibula
NOES: Coun~il Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
I
Resolution No. 2003-103 is on file in the Office of the City Clerk.
ADJOURNMENT
There being no furtq.er business, ,at the hour of2:40 p.m., Mayor Cibula declared the meeting
adjourned.
ATTEST:
I
APPROVED:
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City Clerk ( .
6/30/2003