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HomeMy WebLinkAboutMinutes - City Council - 2007-06-20 - Special Meeting 142 City Council, Special Meeting City Council Chambers 777 Cypress Avenue, Redding, California June 20, 2007, 1 :30 p.m. The meeting was called to order by Mayor Dickerson with the following Council Members present: Bosetti, Jones, Murray and Stegall. Also present were City Manager Starman, Assistant City Manager Bachman, City Attorney Duvernay, Electric Utility Director Feider, Police Chief Moty, Development Services Director Hamilton, Transportation & Engineering Director Tippin, Fire Chief Fry Community Services Director Niemer, Support Services Director Kersten, Personnel Director Johnson, City Treasurer Detwiler, Finance Officer Strong, Information Technology Manager Zempel, City Clerk Strohmayer and Assistant City Clerk Sherman. I RESOLUTION - Adopting the City of Redding Biennial Budget for Fiscal Years 2007-09 (B-130-070) Mayor Dickerson thanked City Manager Starman and applauded staffs dedication in bringing a balanced budget. He also expressed gratitude to Citizen's Budget Committee members, Bernell Heming and Evelyn Jacobs for lending their expertise and oversight to the City's budget process. City Manager Starman explained that the biennial approach to budget preparation produces a more comprehensive and efficient method of administering the City's finances over a two- year period. He said that the budget process gets under way in February immediately following the City Council's priority-setting workshop where Council ranks priority projects and programs and, with that information, staff builds the budget to accommodate as many of those priorities as possible while producing a balanced budget that also maintains service levels. Mr. Starman reported that Redding's proposed budget for fiscal year 2007-08 amounts to $291,312,270, and $287,553,880 for fiscal year 2008-09. He also summarized the proposed General Fund and Enterprise Funds budgets pointing out that approximately 57% of the General Fund budget ($72,844,170 in fiscal year 2007-08 and $74,030,590 in fiscal year 2008-09), is utilized to fund public safety activities, and the majority of the Enterprise Funds proposed budget (approximately $216 million and $215 million in fiscal years 2007-08 and 2008-09 respectively), is associated with Electric Utility expenditures. Mr. Starman said that in February 2006, the City Council made a number of significant adjustments to the City's budget to include additional funding for the new Redding Municipal Library's 60-hour operating schedule, four new police officer positions to accommodate a new police beat in the community and a General Fund bond issue to partially fund infrastructure needed to develop and open the Stillwater Business Park. These adjustments total $1.5 million and adequate resources have been added to the proposed budget. I Mr. Starman said that a critical building block of the budget process is the City's Ten Year Financial Plan and he highlighted the fact that Redding is one of only a handful of cities utilizing this approach to financial planning. He added that another important goal of the budget is to ensure that all departments do well and that funding and expenditures are spread evenly across the board so that some departments do not suffer while others prosper. Mr. Starman recognized department heads and staff for meeting the challenges and bringing in a lean budget and he acknowledged the Finance Division for its dedication and commitment to the process. City Manager Starman introduced Citizen's Budget Committee Members, Evelyn Jacobs and Bernell Hirning commenting that these individuals were selected and invited to sit in on the budget process, make suggestions and lend their expertise to the financial issues of City government. Mr. Starman applauded their hard work and focus toward a balanced budget. I Citizen's Budget Committee Members' Comments Citizen's Budget Committee Member Evelyn Jacobs, Region President for US Bank, thanked the City Council and City Manager Starman for allowing her to participate in the budget process. She commended staff for its hard work in balancing the budget and observed that the entire process was very thorough and detailed. She urged the City Council and staff to 06120/2007 143 challenge City vendors to "sharpen their pencils," and she encouraged employees to continue to look for ways to cut costs. Ms. Jacobs also favored changing the annual funding for Turtle Bay to a long-range commitment and said that more funds should be allocated to the Convention Center to make it more viable. Ms. Jacobs said it was an invaluable experience. Mr. Starman explained that Bernell Hirning, Associate Regional Dean for National University in Redding, was unable to attend today' s meeting due to a scheduling conflict, but had submitted a letter expressing appreciation to the City Council and City Manager for the opportunity of having served on the budget committee. He said that it was an educational experience and a pleasure and privilege to have served. I Ten Year Plan and Overview of General Fund Revenue Assumptions Assistant City Manager Bachman provided and overview of the budget assumptions explaining that the City routinely utilizes conservative assumption estimates; not only to produce a balanced budget, but to ensure that the budget fits within the Ten-Year Financial Plan (Plan), and that reserves do not drop below 5%. He also provided slides depicting property tax, Transient Occupancy Tax (TOT) and sales tax history for Redding over the last 20 years. I As he outlined the General Revenue Assumptions, Mr. BachmaQ emphasized that conservative revenue projections are typically below actual revenues. He said that assumptions project that the state's economy will continue to grow during 2008-09 and that local construction activity will return to historic levels. Inflation will be approximately 2.5% and interest rates associated with City investments will remain relatively constant at approximately 5%. He said it is anticipated that the City's population will grow by approximately 1.5% and revenue will grow at historical averages. General Fund property tax revenue will increase by 5.5% per year and sales tax revenue will increase 4.5%, slightly less than the 6.3% average of the last ten years. TOT will increase by 4% per year and revenue from licenses and permits, fines and penalties and from service charges will increase by 4%. Motor vehicle in-lieu fee revenue is assumed to increase by 6%, slightly less that the 7% per year enjoyed over the past ten years, and he remarked that revenue from other governmental agencies will increase by 3%, and from internal departments by 4%. Mr. Bachman added that Enterprise Funds will increase with inflation plus historical grown with the exception of storm drainage fees which are not schedule to increase. Internal Service Funds will increase by expected p-ersonnel growth, or 3.5%. Council Member Murray challenged the 5% reserve minimum opining that this number artificially inhibits the City's ability to spend for needed services such as public safety. He also questioned the 5.5% property tax increase projection maintaining that actual increases amount to 2% per year. Mr. Murray acknowledged the rationale of conservative projections but contended that a 5% reserve is an arbitrary number and departmental budgets must be based on real numbers. Council Member Murray opined that the Financial Plan has a weakness in that staff and Council adjust a two-year budget based on conservative projections which may be appropriate. However, he observed that it encourages the City Council, when income exceeds these conservative projections, to spend that money on projects and programs other than those priorities identified by Council because it appears to be "extra" or "found" money over and above that which was budgeted for priorities. He suggested that Council pre- commit to spending this "extra" or "found" money on Council-established priorities rather than adding new projects to the list which would utilize revenue over and above the 5% reserve. I Assistant City Manager Bachman acknowledged that as budget years progress, staff can make changes to the numbers as Council directs. GENERAL GOVERNMENT Assistant City Manager Bachman explained that General City Government is comprised of the City Council, the City Manager, Community Development and the Library, the City Clerk's Department, City Treasurer's Department and the City Attorney's Department. City Council City Manager Starman reported that the City Council budget for FY 2007 -08 totals $161,180 and for FY 2008-09, it amounts to $168,410, and there are no other significant issues. 0612012007 144 City Manager's Department City Manager Starman said that the City Manager's proposed budget for FY 2007-08 amounts to $809,570 and for FY 2008-09, the budget totals $851,020. He said there are no significant issues in this budget. Community Development Mr. Starman explained that Community Development budget is funded through grants from the Community Development Block Grant (CDBG) program and the Home Investment Partnerships (HOME) program. While grant amounts have not yet been awarded, he related that grant amounts for FY 2007-08 are expected to be based on the 2006-07 awards, or $2,188,020 for FY 2007-08 and for FY 2008-09 it amounts to $2,190,110. I There are no significant issues in the budget. Redding Library and Branch Libraries Assistant City Manager Bachman recalled that in January 2007, the City assumed ownership and operation of the new Redding Municipal Library and operation of the two Shasta County branch libraries in the City of Anderson and Burney by contract. He said that the libraries are funded jointly through annual contributions from the Cities of Redding and Anderson, the County of Shasta and other sources. The proposed budget for the three libraries for fiscal year 2007-08 amounts to $1,943,570 and for FY 2008-09 it totals $2,019,790, and includes the City's fair share contribution of $679,725 and $700,117 for fiscal years 2007-08 and 2008-09 respectively. Mr. Starman pointed out that the 2006-07 amended budget was slightly over $900,000 but represented only halfthe year's operating expenses. There are no capital outlay requests or significant issues for the Library. City Clerk's Department The City Clerk's proposed budget, which includes the Records Management Division, for FY 2007-08 amounts to $1,079,110 and for FY 2008-09, it totals $1,112,800. Mr. Starman said the increase in personnel is attributed to increasing a 3/4 time position in the Licensing Section to full time. He explained that the Department has made a commitment regarding increased business license revenue to offset the increase in this position making it cost neutral. Mr. Starman complimented the Department for providing a solid justification because additional personnel requests are closely scrutinized. I There are no other significant issues. City Treasurer's Department The City Treasurer's proposed budget for FY 2007-08 is $590,400 and for FY 2008-09 the total is $545,810. The only issue in the Department is a request for an additional part-time position. While the budget includes funding for 1,000 hours of the proposed position, the City Manager has requested additional justification next year prior to hiring. In response to City Manager Starman, City Treasurer Detwiler confirmed that the City is charged approximately $250,000 per year in credit card service fees. She said that these rates are relatively competitive and staff is currently reviewing ways to reduce this cost. There are no other significant issues. City Attorney's Department The City Attorney's proposed budget forFY 2007-08 totals $1,014,010 and for FY 2008-09, it is $1,066,330. The only issue in the City Attorney's Department is a new part time clerical position which received preliminary approval in the budget process. I In response to Council Member Murray, City Attorney Duvernay advised that the contract process has improved with turn-around time at approximately 48 hours. He commended Assistant City Attorney DeWalt for his dedication in keeping this process running smoothly. There are no other significant issues. Non-Departmental Assistant City Manager Bachman explained that the non-departmental budget covers issues/items which are not the sole responsibility of anyone department or division such as 0612012007 145 I Animal Regulation, Non Departmental Division, General Fund Debt Service, General Fund Capital Projects and General City Projects, the total of which is $4,823,410 for FY 2007-08 and $5,001,450. He said that one significant issue within this budget is funds for maintenance and repair of the Convention & Visitors Bureau exterior and roof, as well as $25,000 for the "Art in Public Places" Program. The appropriation is used each year to partner with citizens willing to invest in art in places available for public viewing and will augment the City's efforts to beautify and improve the City. Mr. Bachman added, that the Non-Departmental budget is also used to assist certain community special events with financial support such as Marketfest, the Banner Program, Ducky Derby, the Christmas Tree and Parade, Kool April Nites, the Rodeo and Parade, the Air Show, the 4th of July Freedom Festival, Big Bike Weekend and the 3-on-3 Basketball. Funding for these events totals $ 190,540 in FY 2007-08 and $220,400 in FY 2008-09. There are no other significant issues. Personnel Department The budget for FY 2007-08 is $41,700,720 and for FY 2008-09 is amounts to $44,125,240. Mr. Bachman said that preliminary approval was given to convert one half-time position to 3/4 and one 3/4 position to full time. He recalled that the Risk Management Division ofthe Personnel Department assumed responsibility for administration ofW orkers Compensation claims last year and recent changes to Workers Compensation regulations require additional personnel. This Department also has authority for personnel benefits such as retirement issues, Public Employee Retirement System (PERS), Public Agency Retirement System (P ARS), etc. There are no other significant issues. I Community Services Department Community Services Director Niemer related that the proposed budget for FY 2007-08 is $3,859,460 and for FY 2008-09 it totals $3,966,250. She explained that the Community Services Department includes the Recreation Division, Museums, Park Capital Grant Projects, Park In-lieu Fee Projects and Park Development Fee Capital Projects. Ms. Niemer provided a brief power point presentation highlighting the many programs offered to the community through the Department and provided information regarding programs at Turtle Bay Exploration Park and the past successes and future plans for the Youth Action Council (Y AC). In response to Council Member Murray, Ms. Niemer related that the Department's unmet need to make available online recreation program registration to the public carries a significant cost and will require certain modifications to the City's mainframe computer system. Ms. Niemer said that the software necessary to launch this program alone costs approximately $1 00,000, but it would allow visitors to Recreation's web page to register for programs and classes from any internet connected computer 24 hours per day, seven days a week. There are no other significant issues. I Mosaiculture (C-050-025 & P-050-435) In response to Council Member Murray, City Manager Starman explained that the current Mosaiculture exhibits will continue to be on display through 2008. At that time, he said it will be necessary to replant them at a cost of approximately $20,000 and that money has not been earmarked. Ms. Niemer explained that because the sculptures themselves are living plants, they do not have an indefinite life and must be replanted. She added that the sculpture entitled "The Mallards" will be retained, while the butterflies and bugs will be dismantled Council Member Murray suggested that the sculpture frames be retained and that vines or ivy-type plants be used to "climb" the frames in topiary fashion which would only require minimal maintenance. There are no other significant issues. 06/20/2007 146 Turtle Bay Exploration Park (C-070-250-250) Mr. Starman reported that the Turtle Bay Exploration Park and Museum (Park) is included as part of the Community Development Department's budget and $350,000 has been allocated in fiscal year 2007-08 to assist in its operation. Dennis Cowan, John Clark and Steve Williams supported continued funding for the Park citing its importance to the community as a tourist attraction, its economic impact bringing millions of dollars annually in sales tax and TOT revenue to Redding as well as its educational and cultural benefits. Maggie Redman, Director of Development at the Park pointed out that the Park serves as an icon by which the community identifies and defines itself and it also serves as a source of pride. She urged the City Council to continue, on an ongoing basis, its annual funding contribution of$350,000, but requested that an additional $100,000 for fiscal years 2007 -08 and 2008-09 be approved for a total commitment of $450,000 in each year of the biennial budget. I Gary Cadd, Redding resident, and Willie Preston representing the Shasta County Tax Payer's Association were concerned with continued support of the Park and other types of outside organizations when there are other more pressing needs in the community. While they acknowledged the Park's benefits, they said it is another amenity that diverts limited funding from other higher priority issues such as traffic and public safety. . Council Member Jones agreed that public safety and other City priorities should take precedence over funding assistance to Turtle Bay. While he acknowledge the Park's many benefits, he also acknowledged that the Park has received a considerable amount of funding assistance from the City over the last several years. Mr. Jones said he did not support the current funding amount of $350,000, but a lesser amount with a goal of financial independence from City funding. Council Member Stegall disagreed with defining the Park as an amenity because it, too, is an important component in public safety, providing young people with somewhere to go after school or during summer vacation and activities in which they can participate. Ms. Stegall pointed out that public safety is a balance of many things - not merely putting more officers on the street. She supported the current funding commitment to the Park. I City Manager Starman added that the City also contracts with the Park for such things as maintenance of the Sundial Bridge and other contractual obligations which amount to approximately $500,000 annually. Council Member Murray concurred with Council Member Stegall regarding the Park's role' in public safety. However, he questioned the estimated economic impact numbers of 160,000 visitors annually contributing approximately $2 million in revenue to the City. He questioned if these visitors are attracted to the area to visit the Park exclusively or are they hear to visit a number of attractions. He also questioned the tracking mechanism used to support those numbers. Assistant City Manager Bachman acknowledged that there is no mechanism in place to track tourist dollars spent in Redding as a direct result of the Park, but he explained that data is currently being gathered and will be presented to Council in the near future. Mr. Murray said that if staff can demonstrate a nexus between money coming to the City because ofthe Park, he may be more willing to consider some other funding amount. I MOTION: Made by Council Member Stegall, seconded by Council Member Murray to maintain the City's current level offinancial commitment to Turtle Bay Exploration Park for Fiscal Year 2007-08 in the amount of $350,000 and to continue operational review and funding consideration on a year-to-year basis. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members: Council Members: Council Members: Council Members: Bosetti, Murray, Stegall and Dickerson Jones None None 0612012007 147 Fire Department Fire Chief Fry stated that the proposed budget for FY 2007 -08 totals $16,050,360 and for FY 2008-09 it is $16,428,950. While the Department has several unrnet needs, the highest priority is additional fire fighters on engine companies. He commented that the Department is grateful to have received preliminary approval for three additional firefighters in the FY 2007 -08 budget. Council Member Murray noted that he supported the Fire Department's budget with the caveat that if extra money becomes available within this budget, that additional personnel be added earlier than planned and that more firefighters be hired. I Mayor Dickerson cautioned that if the goal is increasing personnel, permanent employees should not be hired with what could be one-time extra money observing that salaries and benefits are ongoing. , Rich Bates, firefighter, appreciated the City Council's support of three-man engine companies. He indicated that industry standards have been reduced over the years from 4.2 persons per position (which provided adequate staffing for shift work and relief) to 3 persons per position which does not provide adequate personnel resources. He urged Council to support a 3-plus persons-per-position ratio. There are no other significant issues. ADJOURNMENT At the hour of 5:00 p.m., Mayor Dickerson adjourned the Special Meeting to 1 :30 p.m., Thursday, June 21, 2007. APPROVED I ~~ Mayor ATTEST: ~~ City Clerk / ~ I 06/20/2007