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HomeMy WebLinkAboutMinutes - City Council - 2005-09-16 - Special Meeting 212 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California September 16,2005, 12:00p.m. The meeting was called to order by Mayor Mathena with the following Council Members present: Dickerson, Murray, Pohlmeyer, and Stegall. Also present were City Manager Warren, Assistant City Manager Perry, Assistant City Manager Starman, Deputy City Manager Bachman, City Attorney Duvernay, Development Services Director Hamilton, Administrative Assistant to the City Manager Cherpeski, City Clerk Strohmayer and Assistant City Clerk Sherman. I PUBLIC OPINION SURVEY (A-050-060) City Manager Warren recalled that at its meeting of June 7,2005, the City Council (based on the recommendation of sub-committee members Mayor Mathena, Council Member Stegall and James Fink) approved hiring the firm of Fairbank, Maslin, Maull in & Associates (FMMA) to conduct a public opinion survey soliciting certain information from 600 Redding residents, including 400 registered voters. The survey was conducted over a five-day period from July 27 through July 31, 2005, wherein residents responded to a series of questions regarding a wide variety of City issues including services, spending priorities and additional needs. Residents were also questioned to determine their support or opposition for a ballot measure which would increase the sales tax to fund those needs. Mr. Warren related that David Metz of FMMA will provide a presentation of survey results and Deputy City Manager Bachman will review City finances relative to those results, and overview revenue and expenditure projections over the next ten years. Overall, Mr. Warren said, the results were very good in terms of public satisfaction with the City's performance. David Metz ofFMMA provided a power point presentation entitled Resident Public Opinion Survey Results, dated September 16,2005, incorporated herein by reference. He explained that a sampling of 600 adult residents, including 400 registered voters likely to cast ballots in November elections, were interviewed with a sampling margin of error of plus or minus 4.0 % for residents and 4.9 % for voters. Mr. Metz said that when asked to rate local quality of life in Redding, residents rated it very high with approximately 80% rating it excellent or good; this rating compared favorably to other cities placing it about mid-range on the scale. Residents ranked the natural surroundings and scenic beauty as some of the things they liked most about Redding with recreation opportunities and the small-town atmosphere in second place. He reported that jobs and housing costs were cited by residents as the City's most serious problems with 37 % rating the problem as extremely serious. A lack of airline service from Redding and traffic congestion were also considered problems by residents. He related that most of those interviewed also felt that growth and development were moving too fast in the community with 53 % rating it as somewhat, or much too fast, but City services received an overall high ranking with 47% defining them as excellent and good. One third of residents gave the City positive ratings for management of City funds, but he pointed out that few California communities receive high marks from residents for financial issues. Mr. Metz said that overall, survey results were mostly positive. With regard to voter receptiveness to a potential ballot measure increasing the sales tax by 1/2 cent to fund the City's need and wants, Mr. Metz reported that only about one-half of the voters would support such a measure. He provided an overview of voter demographics and commented that there was only a marginal increase in support for the measure if reduced to 1/4 cent. I I Mr. Metz related voters' top priorities for the use of revenue generated from a ballot measure in order of importance: 1) public safety, 2) preserving open space, 3) street maintenance/improvements and 4) the Library. Council Member Murray observed that survey results emphasized the need for increased and improved efforts to educate the community regarding amenities or needs juxtaposed to available revenues, as well as the general workings of local government. He questioned, however, the survey results regarding public perception of government waste and inefficiency in Redding compared to other cities. 9/16/2005 213 Mr. Metz responded that while public confidence in government financial management is a concern to Redding residents, it is very low in comparison to other cities. He pointed out that this speaks well for Redding when the public level of confidence in state and federal money management continues to decline. I Council Member Dickerson pointed out that the survey indicated there is a level of public dissatisfaction in certain areas yet, residents were overall satisfied with City services. He believed the incongruity to be a "knee-jerk" reaction by many citizens when they are questioned about government efficiency, and he believed this and other contradictory results , brought survey results into question. Mr. Metz said that whenever survey respondents address waste and inefficiency in government, they tend to frame responses in the broad sense without considering issues in more detail. In order to compensate for this, the question is posed in different ways. He said, however, that there may be a segment of the population that does not understand the connection between development/capital projects and how they spur better-paying jobs, increase the tax base and improve services without raising taxes or rates. Council Member Murray said the survey reflects overall satisfaction with public safety and he questioned the relationship of that opinion to a public safety ballot measure. Mr. Metz responded that because public safety is a high priority for respondents, they are willing to pay the price to maintain or improve service levels so that it does not become a problem in the future. Mr. Warren recalled that in 2002, the City Council asked staff to meet with the members of the business community to discuss how to meet the needs ofthe police and fire departments over the next ten years. The needs of both agencies were discussed and master plans for future needs were developed by the Police Chief and Fire Chief. I Deputy City Bachman provided an overview of the City's Ten Year Financial Plan and commented that public safety needs have increased over the last few years. The cumulative total needed for police and fire over the next ten years builds on itself, but he pointed out that approximately $30 million of the expenditure projections for the Police Department represent construction of a new police station. Mr. Bachman said the amount currently being spent on streets is reflected in the level of street quality and maintenance that exists today. However, he said an additional $48 million, over a ten-year period, would be required to bring streets to an acceptable level. Mr. Bachman added that unfunded needs total $197.9 million. Mr. Bachman provided and overview of the General Fund ending cash balance pointing out that the City's use of long-range financial planning extends beyond financial needs to encompass the needs of the public services provided by the City. He said that while the City is in overall strong financial health, it is apparent that growth and service demands will outrun the City's ability to continue to provide these services. Mr. Bachman related that the total General Fund Financial Plan capacity over the next ten years amounts to $21.2 million with current estimated additions to the Plan of $11.3 million for a total General Fund funding capacity of $32.5 million. I In response to Council Member Murray, Mr. Bachman said that currently the City will spend approximately $40 million on public safety over the next ten years and approximately $20 million on streets. He stated, too, that if the City attempted to fund all of its highest priority projects (which total approximately $70 million), there would be a $159 million shortfall to the General Fund Financial Plan capacity over the next ten years which would have to be funded by a new revenue source or by making cuts in other areas. Mayor Mathena observed that while Redding residents appreciate what the City offers and are enthusiastic about improving the community, they are not inclined to increase taxes to pay for these things. However, he said that in the event an increased tax measure was successful, he would suggest that an oversight committee be empaneled to determine how and on what projects the additional revenue should be spent. Mr. Mathena added that in the 2004 election, there were 197 ballot measures for increasing taxes across the country; 187 9/16/2005 214 past because those cities laid the ground work and promoted public education regarding local government. Council Member Stegall proposed that the City Council accept the report and determine when it should be brought back to Council for consideration. She believed this would provide the City Council with enough time to consider the information provided and also afford the community with an opportunity for input. City Manager Warren said that he would bring the issue to the regular meeting of October 4, 2005. He emphasized the importance of informing the public that the City services they are currently satisfied with will be impacted over the next ten years without additional revenue and the level of those services will decline as the community grows. I In response to Council Member Dickerson, City Manager Warren explained that a 1f2 cent sales tax increase will generate approximately $10 million per year and he suggested that public safety be placed at the top of the funding list. In response to Council Member Stegall, Deputy City Manager Bachman indicated that ofthe current 7.25 % sales tax charged, one cent comes to the City. He pointed out that the City has not had a sales tax increase in the last fifty years. Mr. Warren commented that in the City of San Jose, sales tax is at 8.25% and citizenry satisfaction with services was high due to the increase. He added that much of the sales tax increase will be borne by non-City residents, those who travel to the City from outlying areas to work and shop. In response to Council Member Pohlmeyer's question regarding the Library, James Finck, Library Task Force member, explained that the Task Force developed a plan to fund the Library, but found that unless additional revenue could be generated, the Library will not be able to operate for 60 hours per week. The only means of accomplishing this is with a sales tax increase. Mr. Finck maintained that the decisions made by the City Council now will be reflected ten years into the future. Council Member Murray said that implied in the discussion is a vote for a tax increase, but there is no mention of when this would take place or how much it will cost. I Mayor Mathena observed that the City Council must assume a leadership role in public education prior to moving forward with a sales tax increase. He suggested that staff report back with information outlining the type of education program that is envisioned, City and public needs versus wants, and the length of time the education program will encompass. He remarked that while he supported moving forward, Council must focus on the public education issue prior to any discussions regarding a ballot measure. Council Member Dickerson said that the City must develop a method to define personnel costs, and these should be one-time costs. While he believed public education held value, he said it was more important for the community to help educate the voters. He urged proponents of the sales tax increase and Library Now supporters to contact influential individuals or groups and enlist their help to educate the public. He suggested that staff, too, develop a plan to energize potential supporters to drive the public education campaign. Council Member Pohlmeyer concurred with Council Members Murray and Dickerson commenting that he was encouraged by the survey. He emphasized that future priorities rest with the City Council as it reflects on the changes that have taken place in the community over the last ten years. Mr. Pohlmeyer remarked that the City has stretched financially for other worthwhile projects such as the Civic Center, the Aquatic Center, Big League Dreams and the Sundial Bridge. These amenities are now symbols of community pride and represent a sense of accomplishment. I City Manager Warren cautioned that while the City can educate, it cannot take a position on a ballot measure. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Dickerson, accepting the Report of the Public Opinion Survey prepared by Fairbank, Maslin, Maullin & Associates. The Vote: Unanimous Ayes 9/16/2005 215 CLOSED SESSION (L-lOO) Mayor Mathena stated that pursuant to California Government Code Sections 54956.9(b), the City Council will adjourn to closed session to discuss the following item: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Pursuant to California Government Code Section 54956 .9(b): Significant exposure to litigation one (1) case I At the hour of 1:35 p.m., Mayor Mathena adjourned the regular meeting to closed session. At the hour of 1 :40 p.m., Mayor Mathena reconvened the meeting to regular session, stating that no reportable action was taken. There being no further business, at the hour of 1 :40 p.m., Mayor Mathena declared the meeting adjourned. APPROVED I ATTEST: ~1~~1 City Clerk . I 9/16/2005