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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1992-06-10 - Adjourned Regular Meeting1 6/10/92 City Council, Adjourned Regular Meeting City Council Chambers, 1313 California St Redding, California June 10, 1992 5:15 p.m. The meeting was called to order by Mayor Moss with the following Council Members present: Anderson, Arness, Kehoe, and Moss. Council Member Dahl was absent. Also present were 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 Operation Manager Ryan, Electric Utility Engineering Manager Russell, Director of Finance Downing, Police Captain McKinnie, Assistant City Engineer Aasen, Principal Planner Keaney, Director of General Services Masingale, Director of Recreation and Parks Riley, Police Lieutenant Davidson, City Treasurer Linville, 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, Recreation Superintendent Sherer, Transportation Coordinator Duryee, Streets Foreman Druse, Budget Services Officer Starman, Lead Systems Analyst Erwin, Public Information Officer Bachman, Science Museum Manager Howe, Office Services Supervisor Dent, City Clerk Strohmayer, and Assistant City Clerk Moscatello. BUDGET STUDY (B-130-070) Assistant City Manager McMurry recalled that Council gave staff policy direction to reduce the budget projections. Director of Finance Downing submitted a revised copy of the general fund summary with revised projected revenues and incorporating proposed budget amendments and funding for the library. Ms. Downing stated that staff targeted reductions in the amount of $791,000--a reduction in projected sales tax revenue of $458,000, budget amendments in the amount of $180,000, and $150,000 for the library. Ms. Downing stated that staff is looking at cuts in the traffic safety program, crime analysis program, requiring the Carter House to reimburse the City for a portion of personnel costs, eliminating 12 proposed seasonal part- time fire fighter positions, and eliminating unspecified positions/programs which could involve the elimination of up to 19 full-time positions. She explained that staff will report back to Council with more information about what positions and services will be cut. In response to Council Member Anderson's question, Ms. Downing stated that the furlough program was already incorporated into the budget, and the proposed cuts are in addition to the furlough program. Council Member Kehoe asked if the 19 proposed position cuts would be from the 1992-93 personnel figures or from the 1991-92 personnel figures. Ms. Downing replied the cuts would be from the 1992-93 personnel figures, and explained that staff may cut from the new positions being recommended or other areas--management will be allowed some flexibility. Budget Services Officer Starman clarified that the elimination of 19 positions would be from general fund departments. He clarified that in the 1992-93 budget, staff recommended four additional positions for general fund departments and ten additional positions in the enterprise funds. Noting that Council is talking about eliminating five grant-funded positions in the traffic safety program and two grant-funded positions in the crime analysis program, Mayor Moss asked if these seven positions were included in the 1991-92 personnel budget figures. Ms. Downing explained that these personnel positions were included in the 1991-92 budget, as well as in the 1992-93 budget. However, the positions were 2 6/10/92 shown as grant funded in 1991-92, and funded by the general fund in the 1992- 93 budget. Mr. Starman clarified that the request to continue the positions for the traffic safety and crime analysis programs are not part of the request for 14 additional positions as outlined on Page B-35. Council Member Anderson stated that staff is making progress and staff should continue in the same direction. Council Member Arness noted that staff has conveyed that they will return to Council with a plan to implement. Mayor Moss questioned if Council could approve the budget with the direction to cut 19 positions where staff wants to. Council Member Kehoe said he is not comfortable with that because it is important that Council establish and articulate its priorities. Council Member Anderson said he would like to see the final outcome. Assistant City Manager McMurry indicated it was his understanding that Council has to approve elimination of positions from the City's authorized position list, and Council has never delegated that authority to staff. Mr. McMurry acknowledged Council's direction to make additional cuts in the amount of $791,000 through a combination of layoffs and furloughs. He said staff could return with an implementation plan by the first meeting in July. Although the furlough program could not be implemented by July 1, staff is aware that Council would like to implement it as soon as possible and it should be structured around workloads and sensitive situations. Mr. McMurry noted that the firefighting season is at its peak, and Council may want staff to consider those kind of factors into the furlough program. Council Member Anderson agreed. Mayor Moss said staff should be authorized to expand the furlough program, if possible, rather than eliminating positions. Council Member Anderson stressed that Council should leave that option to staff. Noting that Council has given clear direction to not continue grant funded positions that expire, Budget Services Officer Starman asked if that applies to the traffic safety program, and is Council saying that furloughs are more practical than layoffs. Council Member Anderson noted that the furlough program can be carried too far if cuts are not made, and he does not want to see City Hall close. Council Member Anderson said he approves of the recommendations staff has proposed. Council Member Arness stated that staff's proposal to cut $1.2 million through a furlough program and almost $800,000 according to tonight's recommendation is good. Mr. McMurry conveyed that the furlough program will not be without serious reductions in the level of service. He added that the Fair Labor Standards Act complicates a furlough program because exempt employees may no longer work more than the prescribed number of hours per week without being paid overtime. Mayor Moss stated that staff should have the widest latitude possible to make decisions about furloughs or full-time position cuts. Council Member Anderson agreed. Council Member Kehoe re-emphasized that a reduction in dollars, means a reduction in service levels. The management team must identify low priority work and eliminate that work on a department- by-department basis. Mr. McMurry reiterated that staff will bring a plan back to Council for approval. 3 6/10/92 GENERAL FUND DEPARTMENTS City Council Director of Finance Downing reviewed the City Council's budget. Council Member Kehoe asked what specific cuts can be made in Council's budget. He said this is an opportunity to demonstrate Council's willingness to participate in the budget cuts. Budget Services Officer Starman conveyed that staff has made some reductions in Council's budget already, mainly in the area of travel; however, there is still quite a bit of money left. Mayor Moss asked how much money is set aside for travel. Ms. Downing relayed that $24,000 still remains. Mr. Starman explained that this amount includes Council's monthly travel allowance. Council Member Arness said Council should be a part of the cutbacks, and he recommended a reduction in compensation and travel allowance in the amount of 10% to 15%. Mayor Moss stated that 10% to 15% is a token amount, and he suggested that Council's travel allowance be cut from $375 to $200. Council Member Kehoe concurred with the suggestion to lower the travel allowance to $200, and he suggested that salary be reduced by 50%. Mayor Moss said he is willing to accept those cuts subject to a sunset provision. He pointed out that Council receives much less salary than allowed by State law, and he does not want to make it impossible for aspiring Council Members to afford to sit on the Council. He recommended a sunset provision of two years. Council Member Kehoe suggested that the reduction be tied to the health of the budget. City Attorney Hays noted that there are provisions in the Government Code that regulate Council salaries. He is not sure if Council can lower its salary during its term of office; but, Council can only raise its salary for a subsequent term. Mayor Moss said he would prefer to cut the travel allowance and leave the salary alone. It was the concurrence of Council to leave the salary at $200 per month, and cut the travel allowance from $375 per month to $200 per month. Ms. Downing noted that Council's travel and training budget would be reduced by approximately $10,500. General Fund Departments Director of Finance Downing reviewed the budgets for the following departments: City Manager, City Attorney, City Clerk, City Treasurer, Finance, Purchasing, Personnel, and Animal Regulation. In addition, Ms. Downing discussed the budgets for the Posse Grandstand and non-departmental costs not associated with a specific department or function. Police Department Noting that Council just approved an additional $800,000.00 in cuts to general fund departments, Chief of Police Blankenship expressed reluctance to review the Police Department budget because the department's budget will be seriously impacted. He conveyed that he will put a program together and report back to Council. He added that there will be substantial cuts in some service areas, and he cautioned that the community has become accustomed to a full-service Police Department. Council Member Anderson recognized there will be a reduction in service levels; however, Council is attempting to avoid drastic cuts by doing minor surgery now. 4 6/10/92 Fire Department Fire Chief Bailey presented the budget for the Fire Department. Mayor Moss asked what kind of reductions will be made in the Fire Department's budget. Mr. McMurry conveyed that specific cuts have not been identified at this time. Council Member Arness pointed out that the Fire Department has not added any full-time positions since 1986. He added that temporary positions could be eliminated. Mayor Moss said the City cannot afford to make any cuts in the Fire Department. The Department is already manned at a low level, and the City may be mandated to increase that level. He noted that a fee or tax may be required to cover Fire Department services. Budget Services Officer Starman pointed out the City Manager identified potential sources of revenue in the budget such as charges for fire rescue calls for oxygen, medication, defibrillation, etc. Mr. McMurry asked Council to clarify what direction staff should proceed in. Council Member Arness said he does not recommend making any cuts in the Fire Department, and staff should bring back ideas on how to recapture money. Council Member Anderson stated that no full-time positions should be cut in the Fire Department; however, he would consider cutting part-time employees in other areas. He said he would prefer to focus cuts on departments that have had large increases in personnel. In response to Council Member Moss' question, Mr. McMurry stated staff asked all directors to evaluate their personnel requirements and make 5% and 10% reduction recommendations. He conveyed that in order to balance the budget, staff must either make cuts or revenue must be increased. If reductions are not made in the Fire Department, expenditures must be decreased elsewhere or revenue sources to support fire services must be established. Mayor Moss asked if charging back services to the customer is a new phenomenon or is it widespread. Mr. McMurry explained that charging for paramedic fees is not new. Seventy percent of fire service calls are for medical life- support services. Council Member Anderson said he would suspect there would be a large uncollectible factor. Fire Chief Bailey conveyed that the ambulance companies have a 40% uncollectible factor. Council Member Kehoe noted that the Fire Department has been stabilized for a number of years; but, the City continues to annex new areas. Perhaps it is time to begin expanding the Fire Department's budget on an incremental basis. Mayor Moss stated that the consensus of Council is to make no cuts in the Fire Department, except for temporary employees, and implement a furlough program. Mr. McMurry clarified that Council is requesting no cuts in full-time fire positions, recommending cuts in temporary positions, recommending implementation of a furlough program, and authorizing staff to develop a revenue source for fire services for Council's consideration. Mayor Moss asked if there is any way to furlough the Fire Department. Mr. McMurry stated that a fire station can be closed or a shift can be shut down. Council Member Anderson stated that he would not like to see a furlough program implemented during peak fire season. Planning/Building Department Planning and Community Development Director Perry reviewed the budgets for the Planning Department and Building Division. Mr. Perry indicated that planning and building activity will be relatively flat during the next year. He 5 6/10/92 conveyed that the Department is well-staffed and, thus, providing an adequate level of service to customers for the first time. Mr. Perry explained that the Planning Department has dropped all outside consulting services with one exception--Council asked for information about City-owned surplus properties. Mayor Moss asked if it is possible for staff to recapture their costs from the sale of properties. Mr. Perry explained that it would have to be done on a billable hours basis. Mayor Moss indicated that staff has a green light to put that plan in effect. Public Works Department Director of Public Works Galusha reviewed the budget of the Public Work's Department. He indicated that the budget for the Land Development/Transportation Division has been broken out from Public Works Engineering/Administration. Mr. Galusha conveyed that staff is requesting a new Traffic Engineer/Planner for the Land Development/Transportation Division to be funded through the Redding Area Bus Authority, the Metro Plan Organization, and Traffic Impact Fees. He explained that this position is necessary if the City wants to continue receiving grant funds. Projects must be completed in a timely manner, and the maintenance of effort must be met to continue receiving gas tax. Noting that Council Member Anderson mentioned the possibility of transferring someone from Engineering/Administration to Land Development/Transportation, Mr. Galusha pointed out that engineers are oriented to projects and 80% of their time is charged to non-general fund accounts. However, he added that staff could consider internal recruitment for this position. Mr. Galusha reviewed the Streets Division budget. Noting that street maintenance projects were cut from last year's budget, as well as from this proposed budget, Mayor Moss suggested that Mr. Galusha prepare a list of projects that may be carried out if there is some economic relief. Mr. Galusha presented a plan outlining how a storm drain utility, which would include street sweeping, can be put together. He conveyed that a master storm drain plan is now underway. In response to Mayor Moss' question, Mr. Galusha conveyed that staff is reviewing the traffic impact fee and matching project needs with available revenue. He emphasized that this fee is for projects associated with growth by new development and cannot be used to fix old problems. Recreation and Parks Recreation and Parks Director Riley reviewed the budget for the Recreation and Parks Department. Council Member Arness stated that there are some park in-lieu fee capital projects that he would like to see referenced with an asterisk in the budget. Mr. Riley conveyed that the Recreation Department is requesting an increase in personnel to implement a latch key program at area elementary schools. He said there is a real need for this program which will be self-funded by the parents of children who participate. Council Member Arness asked if these positions would be full-time City employees. He cautioned that if full-time employees are brought on board and something happens, there could be trauma associated with layoffs such as when the grants in the Police Department run out. Mr. Riley assured that all such positions would be part-time. He explained that the department hires over 125 part-time employees on a 12-month basis as lifeguards, swim instructors, coaches, etc. 6 6/10/92 Redding Museum of Art & History Community Services Director Gorman reviewed the budget for the Redding Museum of Art & History and the Carter House Science Museum. Mr. Gorman conveyed that there is a proposal in the budget to create a Development Officer position to assist in soliciting private funding to support museum activities. He explained that the funding will be assembled by reorganizing the department to eliminate two part-time positions and reducing other budget lines; thus, there will be no negative impact on the general fund. He conveyed that this position is important to meet the museum's goal to reduce and eventually eliminate reliance on the City's general fund. Midtown Mall Director of Finance Downing reviewed the budget for the Downtown Mall. She conveyed that staff only budgeted for six months in anticipation of a mechanism being in place by January 1993 to allow private enterprise to fund operation of the Mall. If that mechanism is not in place, it will be necessary to either amend the budget or eliminate services. Electric Department Council Member Anderson noted that the Electric's Department budget is based on an 8% rate increase, and Council would be remiss to pass this budget based on that assumption. He conveyed his reservations about voting for a rate increase. Council Member Arness encouraged Council Member Anderson to meet with the Electric Department to learn the formula for determining rates. Council Member Anderson consented; but, he pointed out that a rate increase is revenue enhancement, and it should not be automatic. Mayor Moss stated that it will not be an automatic rate increase. He said the City cannot control how much power is used or how much it will cost. He added that personnel costs are a very small proportion of the Electric Department's budget. Council Member Anderson said he is asking that a rate increase not be a pre- commitment, and the Electric Department look at this budget process like the general fund departments--it is a tight budget year. City Attorney Hays interjected that budgets for the Electric Department have been approved based on rate increases before; however, if the rate increase considered later in the year was not approved or lowered, the Electric Department had to make changes. Council Member Anderson asked if there are any areas in the Electric Department that can be cut back. Mr. McMurry conveyed that budget revenues are all estimated and approved by Council. He explained that the Electric Utility has reserves built in and maintained at levels consistent with Council's policy. Therefore, if Council decides not to raise rates as proposed in the budget, staff has the ability to mid-course correct by reducing expenditure levels or increasing next year's rate increase. Mr. McMurry stated that if this revenue estimate is removed from the budget, the entire budget would have to be re-worked. Utility Operations Manager Ryan explained that the budget is predicated on the rate increase, but it is not required because the utility has a reserve. However, if Council does not approve any rate increase for three years, the Electric Utility will be broke. Council Member Anderson asked if the reserve has to be at a certain level in order to maintain bonding capacity or credit level. Mr. Ryan explained that revenue has to be sufficient to maintain debt coverage ratio. The Utility does not have to maintain a reserve, but rates must be sufficient to provide cash flow income to meet obligations plus 20%. He added that Council set policy directing how much reserve should be maintained. Council Member Anderson asked if staff is absolutely certain there are no areas where cost savings can be made. 7 6/10/92 Mr. Ryan said the budget is a spending plan and staff can change it any way Council would like. Staff can reduce overtime, reduce the workforce, keep less stock on hand, or reduce the level of customer service. Council Member Anderson stated that if Council wants to maintain a level playing field, we should be charging more for areas in the general fund and less in the Electric Utility. Pointing out that the Electric Department is presently providing a higher level of service than most other City departments, he questioned if Council should be dropping service in other Departments and keeping the Electric Utility at a higher service level, or should Council try to equalize the level of service. Mayor Moss noted that the electric ratepayers subsidize new development by approximately $1 million annually, and Council recently decided not to pass those costs on to developers. It is his belief there are places where the ratepayer and taxpayer balance each other out as they are one in the same. Council Member Anderson stressed that Council is in no way committed to a rate increase. 8 6/10/92 Budget Policy Direction It was the consensus of Council to consider the furlough program at the next budget study meeting. In addition to policy direction regarding the furlough program, Mr. McMurry conveyed that Council must consider the exemption from layoffs given the Fire Department which will have an impact on the Police Department and the duration of layoffs on the general fund departments; whether there will be cost of living adjustments for City employees; the direction of negotiations with the Electric and Police bargaining units; and when Council would like to meet to provide labor relations direction. Mr. Downing added that Council must decide whether or not to add the proposed new positions, most of which are proposed for non-general fund departments. Mr. McMurry stated that staff is under the assumption that all of the budgets Council has considered, except where Council has specifically objected to, or given staff a contrary direction, are satisfactory and staff is prepared to incorporate them into the final budget document. Mr. McMurry clarified that Council has given direction relative to recouping an additional $790,000 from layoffs, furloughs, and program reductions. Mayor Moss said he is ready to move ahead. Council Member Anderson said the budget is fine, subject to those changes Council has considered. Council Member Arness said the budget is fine. Council Member Kehoe inquired if Council would be considering more of the budget tomorrow night. Mr. McMurry replied that Council will bring back policy issues for consideration and review internal service funds tomorrow night. ADJOURNMENT There being no further business, at the hour of 8:25 p.m., Mayor Moss declared the meeting adjourned to 5:15 p.m., June 11, 1992. APPROVED: _____________________________________ Mayor ATTEST: ___________________________________ City Clerk