HomeMy WebLinkAboutMinutes - City Council - unsigned - 1992-06-08 - Adjourned Regular Meeting1
6/8/92
City Council, Adjourned Regular Meeting
Council Chambers, 1313 California Street
Redding, California
June 8, 1992 5:15 p.m.
The meeting was called to order by Mayor Moss with the following Council
Members present: Anderson, Arness, Dahl, and Moss. Council Member Kehoe was
absent.
Also present were City Manager Christofferson, Assistant City Manager McMurry,
City Attorney Hays, Director of Public Works Galusha, Director of Planning and
Community Development Perry, Chief of Police Blankenship, Fire Chief Bailey,
Electric Utilities Operations Manager Ryan, Police Captain McKinnie, Director
of Community Services Gorman, Director of Finance Downing, Assistant City
Engineer Aasen, Director of General Services Masingale, Director of Parks and
Recreation Riley, Superintendent of Wastewater Craig, Director of Information
Systems Kelley, Director of Personnel Bristow, Building Official Voges,
Housing Manager Maurer, Senior Planner King, Police Services Manager Primrose,
Assistant Finance Director Sundin, Battalion Chief Tomicich, Battalion Chief
Del Carlo, Recreation Superintendent Sherer, Risk Manager Mlinarcik,
Transportation Coordinator Duryee, Streets Foreman Druse, Budget Services
Officer Starman, Lead Systems Analyst Erwin, Public Information Officer
Bachman, Community Access Supervisor Clements, Office Services Supervisor
Dent, Office Services Supervisor Rupp, City Treasurer Linville, City Clerk
Strohmayer, and Assistant City Clerk Moscatello.
BUDGET STUDY SESSION
(B-130-070 & L-050 & P-050)
City Manager Christofferson submitted the Long-Range Financial Plan for the
General Fund containing revenue and expenditure projections for the fiscal
years through 1997 and a summary of the City's Capital Improvement Plan.
Mr. Christofferson recommended amendments to the 1992-93 proposed budget, and
he reviewed the amendments outlined in the Interdepartment Communication dated
June 8, 1992, which is incorporated herein by reference.
Mr. Christofferson asked if Council would like to see a film produced by the
League of California Cities about the State of California's current economic
conditions. City Council concurred not to view the movie at this time.
Budget Services Officer Starman reviewed the budget assumptions, the
comparative summary of estimated revenues, the statement of estimated revenue,
the summary of expenditure programs, and the comparative summary of
expenditure programs.
Mr. Starman added that funds for the design of the Corporation Yard are
included in the budget because staff believes that the City can move ahead
with the design and remain solvent.
Commenting on the depth of the 5-Year Capital Improvement Plan, Council Member
Anderson suggested that Council consider the document at a Saturday Workshop.
Council Member Dahl stated that staff is overly optimistic in its revenue
projections for the 1992-92 fiscal year. He opined that the recession will
continue and revenue from the State will remain static. He recommended a
reduction in proposed sales tax revenue from 5% to 1%. Council Member Arness
concurred.
Mayor Moss concurred and noted that the State legislature is considering
shifting more city revenues to counties and schools districts.
Council Member Anderson opined that the economy has not bottomed out; and
without adequate reserves, Council cannot be optimistic. He expressed support
for a conservative approach to the budget.
Budget Officer Starman conveyed that if the sales tax revenue assumption is
reduced to 1%, the budget is reduced by approximately $450,000.
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Council Member Arness stated that the budget assumption of a 10% increase in
property tax revenue is optimistic, and he opined that it will be closer to
7%.
Council Member Anderson agreed; however, he stated that if the sales tax
assumption is cut to 1%, he will support a 10% increase in the property tax
assumption.
It was the concurrence of City Council to base the budget assumptions on a 1%
sales tax revenue increase and a 10% property tax revenue increase.
Council Member Anderson stated that personnel costs are an issue Council
should address. He pointed out that personnel costs made up 62% of the
general fund budget; however, because of the shrinking budget, personnel costs
now account for 72% of the budget, and that is too much. Noting that staff is
proposing new positions, he conveyed that Council should not consider adding
personnel when a furlough program is being considered.
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Mr. Christofferson explained that none of the proposed positions will affect
the general fund because the positions are charged to enterprise funds. He
suggested that staff be allowed the opportunity to present their requests for
additional personnel through the budget review process.
Mayor Moss stated that any requests for new positions that will impact the
general fund will require a great deal of explanation.
Mr. Starman outlined the proposed new positions and the cost of each position
to the enterprise utility or special revenue department.
Council Member Anderson questioned if existing personnel in general fund
departments could be transferred to new positions in lieu of hiring more
personnel.
General discussion ensued regarding charging personnel time to enterprise
departments, state mandated requirements, and using existing personnel to fill
proposed positions.
Council Member Dahl said he does not want to practice micro-management;
therefore, staff should prioritize what positions are necessary to keep. He
stressed, however, that he does not want further street maintenance cuts.
Council Member Anderson said he would rather make cuts now and not implement a
furlough program.
In response to Council Member Dahl's inquiry, Mr. Christofferson stated that
personnel in the traffic safety and crime analysis programs were grant funded
and the cost to continue funding those positions is $339,000.
Council Member Arness noted that funds could be saved by not designing the
Corporation Yard.
Mayor Moss pointed out that Council will soon be reviewing the traffic impact
fee. He questioned if these funds could be used to pay for street
maintenance. Director of Public Works Galusha stated that staff will present
a report on the results of the traffic impact fee in July.
Council Member Anderson stated that he does not want to look at revenue
enhancement during these tough economic times--the City should live within its
means. He conveyed that he is in favor of building a new Corporation Yard;
but, if funds are not available, he cannot support moving ahead with the
project. He added that Council should hold the line on personnel.
Council Member Dahl stated that the City cannot continue funding grant funded
positions that expire, and he suggested that the organization be pared down.
Noting that some of the assumptions upon which the budget was based have been
rejected, Mayor Moss suggested that study of the general fund departments be
continued to a later date and staff present the budget for the enterprise
funds tomorrow night.
Shasta County Library
Dave Bish submitted a letter from Emunah Hauser urging Council to continue
funding the library.
Dave Bish, 370 Buckeye Terrace, representing Friends of Shasta County
Libraries, stated that Shasta County may cut library funding by 25%. This
will reduce staff by 56% and operating hours by 26%--contingent upon the City
maintaining its current funding level. He explained that if the City does not
fund the library, the library will close. Mr. Bish said it may be time to
consider alternative revenue sources to fund the library.
Council Member Anderson asked if any progress has been made to create a non-
profit library.
Mr. Bish stated that a financing study is being prepared which considers a
special tax assessment with a three-year moratorium to build an endowment fund
upon which to fund the library on a sustained basis. He conveyed that it will
be up to the voters to decide if this is a viable alternative.
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In light of how the community responded to the utility user tax, Council
Member Dahl asked what the reaction would be from the people of Redding if a
tax to provide library funding was enacted.
Mr. Bish opined that the voters were concerned about where the money would go
and there were no assurances that the money would not go into the general
fund. He noted that the in-lieu franchise fee would share the pain fairly and
it would probably not create as much negative publicity.
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Indian Hills Neighborhood Park
Ron Bell, 3584 Auburn Drive, presented a petition from residents of the Indian
Hills Subdivision requesting the completion of the neighborhood park in Indian
Hills. Mr. Bell recalled the mission and goals of the City of Redding, and he
asked Council to complete and maintain the neighborhood park in this rapidly-
growing area.
ADJOURNMENT
There being no further business, at the hour of 6:50 p.m., Mayor Moss declared
the meeting adjourned to 5:15, June 9, 1992, at the City Council Chambers,
1313 California Street.
APPROVED:
______________________________
Mayor
ATTEST:
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City Clerk