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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1993-04-07 - Adjourned Regular Meeting Adjourned Regular Meeting Redding City Council City Hall Conference Room 760 Parkview Avenue Redding, California April 7, 1993 At the hour of 1:00 p.m., Mayor Moss called the Adjourned Regular Meeting of the City Council to order with the following Council Members present: Anderson, Arness, Kehoe, and Mayor Moss. Council Member Dahl was absent. Also present were City Manager Christofferson, Assistant City Manager McMurry, Director of Public Works Galusha, Director of Planning and Community Development Perry, Police Chief Blankenship, Fire Chief Bailey, Assistant City Attorney Calkins, Police Captain Byard, Recreation and Parks Director Riley, Director of Finance Downing, Director of Community Services Gorman, Budget Services Officer Starman, Public Information Office Bachman, and City Clerk Strohmayer. UPDATE ON CURRENT BUDGET TRENDS (B-130-070) Budget Services Officer Starman presented the update on current budget trends. Mr. Starman reviewed the cash balance, revenue, expenditures, and the projected cash balance for fiscal year 1992-93. Mr. Starman projected a 2.9% cash balance in the amount of $931,000 at the end of the fiscal year. City Manager Christofferson emphasized that the City can balance its budget in the next fiscal year, but it cannot balance the State's budget. Mr. Christofferson stressed that the budget shortfall is not a local problem, it is a State problem. He added that the City does not know the impacts of the State budget at this time, but the City is in the process of formulating its budget based on those things it can control. He said it is certain cities will receive a hit from the State, it is only a question of when and how much. He does not believe the City's budget can reflect the State hit in the May or June time frame. The League of California Cities has indicated that State budget closure should occur around October. Council Member Anderson asked if State budget impacts would be discussed at this meeting. City Manager Christofferson responded that due to not having any material relative to trends available, he had not anticipated addressing the matter at this meeting. Council Member Anderson stated that while he could go along with the position of moving forward with the City's budget in the manner in which it is, he hoped to see a game plan in response to the State hit. Mr. Christofferson assured him that a couple of game plans are in the developmental stages. 1993-94 BUDGET RELATED ISSUES (B-130-070) City Manager Christofferson presented an analysis of public service cutbacks in general fund departments that may be necessary during the 1993-94 budget year. He conveyed that the report is a collective effort by staff and represents hundreds of hours of work. Mr. Christofferson relayed that the following presentations will be made by department directors, and although no action is necessary, Council's comments and reactions are welcome. Council Member Arness conveyed his disappointment that staff did not prioritize what services cannot be eliminated. He stated that staff should rank the cuts. Mr. Christofferson explained that the report is responsive to the request made by Council during its January workshop to identify where cuts could be made. Mr. Christofferson noted that the budget process is ongoing and staff will prioritize the cuts. Staff does not know how deep the budget shortfall will be at this time. He added that Council does not have to take action today, staff is only looking for some sense of which programs are important to Council. Mayor Moss noted that Council did enhance revenue in the general fund last year through transfers, eliminating subsidies to enterprise funds, and establishing Fire Department fees. He questioned whether these adjustments have been built into the budget. Budget Services Officer Starman replied yes, except for the Fire Department fees because they have not been implemented yet. Council Member Anderson interjected that he would not agree to an in- lieu franchise fee. Mayor Moss pointed out that the City bends over backwards to accommodate growth and subsidizes the building industry. He believes revenue should be related to usage, and therefore, supports use taxes. He said if Council is looking for revenue enhancement, it should consider sources such as subdivisions, lot splits, annexations, etc., to determine if adequate fees can be derived from those being subsidized so substantial cutbacks do not have to be made in other areas. Mr. Christofferson stated that it is staff's responsibility to lay out the options, and Council's responsibility to make the judgement calls. Mayor Moss emphasized that it makes great press to say Council will not consider any revenue enhancement; but, this is a growing community, and it is necessary to look at areas that are being subsidized. Council Member Kehoe said it is incumbent upon Council to establish guidelines the City Manager can embrace when determining where to make cuts. There are certain things Council does and does not want to happen, and Council has the responsibility to outline those parameters. Police Department Police Chief Blankenship presented information identifying potential areas for service reduction in the Police Department's budget. Chief Blankenship reviewed possible cuts in investigations, police services, administration, and field operations. General discussion was held relative to the utilization of assets forfeiture funds to pay for Police personnel. Fire Department Fire Chief Bailey identified potential areas for service reduction in the Fire Department's budget. Chief Bailey reviewed possible cuts in fire personnel, transferring crash/fire/rescue costs to the Airport fund, and elimination of the weed abatement, volunteer, and defibrillation programs. Chief Bailey emphasized that areas for savings are fairly minimal. In order to save real money, fire stations must be closed, and he does not encourage that action. Public Works Department Public Works Director Galusha presented information about the operations of the Public Works Department and areas of potential savings that have been identified. The following divisions were reviewed: Engineering/Administration, Land Development and Transportation, and Streets. Mr. Galusha indicated they were continuing to work toward reducing general fund support for public works operations. City Manager Christofferson pointed out that while Redding continues to subsidize street division activities through the general fund, he is aware of no other city subsidizing street programs with general fund revenue. Mr. Galusha stressed the importance of forming a storm drain utility because the City will be faced with additional expenditures due to the mandated storm drain maintenance program. He noted that one of the main elements of the storm drain program is street cleaning. Mayor Moss asked if other communities have combined their storm drain program with their wastewater utility. Mr. Galusha said that option can be considered; however, the consultant responsible for the master plan recommended separate utilities. He added that the storm drain account will be negatively impacted in this fiscal year or in 1994- 95. Recreation and Parks Department Recreation and Parks Director Riley reviewed potential areas for reduction of services and budget cuts. Mr. Riley discussed reductions in park maintenance, tree trimming, recreation programs, summer school programs, aquatics, personnel, day care programs, and special events. Mr. Riley stated that if cuts must be made, he recommends that all park development be put on hold until adequate personnel are available to maintain the parks. Planning and Community Development Planning and Community Development Director Perry conveyed that the Planning Department budget is down from last year and the department has already absorbed personnel losses. Mr. Perry stated that the department is labor intensive, rather than project intensive. Mr. Perry gave an overview of department functions and personnel staffing and provided a packet of information relative to population growth and projections, departmental activity, annexations, and building activity. Museums and Animal Regulation City Manager Christofferson presented an overview of possible reductions for the museums and animal regulation including privatization and reduction of personnel. Smaller Departments City Manager Christofferson noted that there is not much potential for large savings in small departments such as City Attorney, Personnel, City Treasurer, Finance, City Clerk and City Manager. He explained that the type of cuts that have been identified are minor in economic impacts and crippling in public service impacts. Overview City Manager Christofferson pointed out that wherever the cuts are made will be perceived as wrong. Mr. Christofferson re-emphasized that this is really not a City problem, but a State problem. He conveyed that Sacramento legislators indicate the State is picking on local government not because it is appropriate, but it is simply easy pickings. Mr. Christofferson warned that the State wants to take away $2.6 billion from local government and that figure may rise to $3.1 billion if the Federal government does not respond positively to Governor Wilson's request for immigration costs. City Manager Christofferson assured Council Member Arness that staff will prioritize the potential cuts and bring them before Council as part of the budget process. Council Member Kehoe said he is interested in seeing what staff can do to make their thoughts and feelings known in Sacramento. He noted there are approximately 75,000 people in the City of Redding, and he would like to see as many letters sent to Sacramento from people criticizing the confiscation of funds. Mr. Christofferson said that is an excellent point, and if public support could be generated, that would be outstanding. Council Member Kehoe suggested that staff provide information about the State budget to the community and encourage the public to send letters to legislators. LIBRARY FUNDING (L-050) City Manager Christofferson noted that the issue of library funding is a carryover from the Council workshop in January. Mr. Christofferson recalled that the ballot measure to establish funding for the library failed to pass, and he asked what direction Council would like to move with regard to supporting the library. Mayor Moss suggested that Council continue to support the library in the same amount as last year with the caveat that the County maintain their funding. Mr. Christofferson questioned what Council would like to do if the County reduces its funding. Mayor Moss suggested that the City maintain its funding, but put pressure on the County. Council Member Kehoe noted that Council is interested in assisting the library to the limit of its ability to do so. He asked if staff would find out what the City receives for its $165,000 funding contribution in specific terms. Elsie Krupet, representing Friends of the Shasta County Library, stated that if the County reduces its library budget any further, the library will close. Ms. Krupet stated that even though Measure A failed to pass, the majority of voters did not reject the library. They either rejected the tax or removing the library from the City and County's domain. She pointed out that 54% of people in the City voted in favor of the tax. The main branch is in Redding, it has the most resources, and it benefits most from the County library system. She noted that the benefits of the library are often intangible. Ms. Krupet thanked Council for its support to keep the library open. MELLO ROOS DISTRICT (A-170) Council Member Anderson stated that he already received clarification on his concern about dissolution of Mello Roos districts. He noted that the City Attorney advised that Council maintains the discretion to cancel or not to cancel such districts, and property owners only have the right to comment on the dissolution of a district. FUND BALANCES/TARGET RESERVES (B-130-070) Council Member Anderson recalled that Council discussed the amount of fund balance the City would like to retain. Council Member Anderson admitted that these are hard times; but, in five to ten years, he opined that a 3% reserve will not be adequate. He conveyed that Council should decide on a reserve goal and strive for it. Council Member Anderson suggested a 10% reserve. Mayor Moss noted that the last two years have shown that a 3% reserve is not enough. However, the problem with a 10% reserve is its attractiveness to legislators in Sacramento who could make an assault on those funds. Council Member Kehoe stated that it is acceptable to have a reserves up to 10%, although there may be some valid reasons not to. Director of Finance Downing explained that a 5% reserve is considered the professional standard and there must be qualifying reasons for maintaining reserves over 5%. She added that Council policy must be changed if the reserve level is changed. City Manager Christofferson conveyed that there are different kinds of reserves. Discussion has been centered around the general fund reserve; however, there is less than adequate funding in the insurance reserves and the City should build up a fleet revolving fund. Council Member Anderson suggested that a desired reserve level be addressed at the next workshop. LOCAL PREFERENCE IN BIDDING MATERIALS & SUPPLIES (B-050-100 & B-050-020) Council Member Arness recalled that Council has been discussing local preference for request for proposals for professional services and large public works construction projects. He noted that the City offers a 1% bid preference for local bidders of materials and supplies. City Manager Christofferson suggested adding language stating where there is an adequate base of local competition, a factor be built in giving consideration based on the fact it is easier to work with someone locally than someone in another city. COMPOSITION OF COMMISSIONS (B-080) Council Member Kehoe recalled that in May, 1992, Council asked to reevaluate the commissions in one year. Council Member Kehoe asked if Council wanted to consider this now or defer the issue. Mayor Moss recalled that Council indicated the Airports Commission and Tourism and Convention Commission may be expendable. However, both department directors feel strongly that these commissions perform a valuable service to the community at virtually no cost. Mayor Moss opined it would be a step backwards for the commission system that has served the City so well. Council Member Kehoe agreed; however, he pointed out that the commissions have seven or eleven members, yet Council has five and functions very well. He stated that, at some point, Council may want to look at reducing the number of commissioners through attrition to achieve some economies. Airports Director Ruff opined there is no advantage to cutting the number of commissioners to five. He explained that the commissioners volunteer their time and represent a broad base of interests in the community. Planning and Community Development Director Perry pointed out that Planning Commissioners attend 26 meetings a year and rotate onto the Board of Administrative Review. He explained that it helps to have seven members, rather than five, to reach a quorum and attend the extra meetings. General discussion was held regarding absences on commissions and term limits. It was noted that there is a Council policy regarding term limitation and a policy regarding the number of unexcused absences a commissioner may have before being discharged. JULY COUNCIL WORKSHOP (A-050-060) City Manager Christofferson asked if Council would like to hold a workshop in July or August and focus on the concepts outlined in the book, Reinventing Government and any applications it may have for the City. Council Member Arness expressed his support for this idea. Mayor Moss noted that in July, Council will be going through a whole continuum of budget oriented meetings and he would prefer to wait for an appropriate opening rather than schedule it ahead of time. Mr. Christofferson recalled that he asked Ted Gaebler, the co-author of Reinventing Government, to speak at the workshop. He said he will continue to work on this angle, and he added that the speaker fee is expensive. Council Member Kehoe expressed support in the concepts outlined in the book and suggested that staff look for a sponsor to fund the workshop. Council Member Anderson conveyed that he is interested in the topic; however, the timing may not be ideal. ADJOURNMENT There being no further business, at the hour of 4:47 p.m., Mayor Moss declared the meeting adjourned. APPROVED: _______________________________ Mayor ATTEST: ___________________________________ City Clerk