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HomeMy WebLinkAbout1992-06-08MINUTES CITY COUNCIL/REDEVELOPMENT AGENCY Council Chamber, Civic Center Huntington Beach, California Monday, June 8, 1992 A videotape recording of this meeting is on file in the City Clerk's Office. Mayor Silva called the adjourned regular meeting of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 7 p.m. ROLL CALL Present: Robitaille, Moulton -Patterson, Winchell, Silva, Green, Kelly Absent: MacAllister BUDGET STUDY SES$IQM - EY 1,922/93 Mayor Silva announced that this meeting is a continuation of the Budget Study Session for fiscal year 1992/93. Items to be discussed are the proposed amendments to the budget, response to City Council questions and comments and public input made during the June 1st public hearing. (320.20) Mayor Silva called for public comments. There being no one present to speak on the matter; Mayor Silva stated that the floor would be opened for public comments later in the meeting. The City Administrator, gave a report on the budget status. He stated that resolutions will be prepared for adoption of the 1992/93 Budget in the amount of $203 million at the meeting on July 15, 1992. The City Administrator stated the focus primarily has been on the General Fund which has a projected shortfall of $4.1 million. Proposed in the budget are reductions in the amount of $3.2 million, and revenue increases of $3.2 million that will create a $1.4 million surplus in the General Fund. PROPOSED AMENDMENTS TO THE 1992/93 BUDGET The City Administrator summarized proposed amendments to the budget submitted by various departments in the amount of $1,015,453. Changes reflected correction of errors in preliminary budget, updated information not available at the time the budget was prepared and other changes such as new proposals for consideration. After deducting the amendments from the $1.4 million in the General Fund, the projected 1992/93 surplus will be approximately $730,000. Page 2 - Council/Agency Minutes - 6/8/92 RESPONSE TO CITY CWNCIL REQUESTS/COMMENT The City Administrator presented a summary of City Council requests and comments from prior meetings on the budget. He stated that in response to Council's question regarding the property tax revenue, the city receives 19% of the total amount collected in property tax. The city portion of the 7.75% sales tax is 1%. Councilmember Kelly stated that he believes the public should be informed that it is a small percentage of the property tax dollar which is returned to the city not the entire amount collected, only $19 per $100 collected. Councilmember Green questioned the $644,033 figure that is listed in two places on the Addendum to Preliminary Budget. The City Administrator explained that it was a transfer of funds from the Capital Fund to the General Fund because it is an ongoing yearly expenditure as opposed to a one-time expense. Councilmember Robitaille requested the status of the Narcotic Forfeiture Subsidies Fund. Police Chief Lowenberg responded that there was approximately $800,000 presently in the fund which is used to fund eight full-time positions. The city averages $1,000,000 per year from state and federal Narcotic Forfeiture Subsidies. Huntington Beach Police Department receives a percentage of the funds depending on their involvement and the number of other agencies involved. PUBLIC HEARING INPUT: 1992/93 BUDGET The City Administrator summarized the public comments and communications he had received regarding the budget. The City Administrator spoke regarding the public's concern about employee salaries. The City Administrator stated that if the city were to renegotiate the contracts with the unions at this point, concessions would have to be made. The City Administrator stated that the budget as proposed and amended would put the city in a position to maintain a balanced budget in the future. Concern has been expressed about what the state is going to do about the State Budget. League of California Cities bulletin - 6/4/92 memo suggests several alternatives to balancing the State budget. (1) Reducing or eliminating the city share of VLF revenues and shift the revenues to counties and further program realignment. (2) Transfer VLF revenues from cities to counties and shift the same amount of the county share of the property tax to schools. (3) Reverse AB 8 property tax allocation scheme and shift property tax revenues to schools. (4) Redistribute revenue from the 1% local sales tax rate to cities and counties based on population or need rather than site of sales. (5) Take redevelopment agencies unreserved capital projects funds. (6) Take property tax from No- and Low -property tax cities. (7) Place a one-year moratorium on new redevelopment agencies or project areas. (8) Place a one-year moratorium on incorporations. (9) Require cities to share in county jail detention operating costs. 10 Page 3 - Council/Agency Minutes - 6/8/42 The City Administrator urged councilmembers to communicate to state representatives that the city is having budget problems too; the city is cutting the budget and increasing revenue in an effort to balance the city budget. He stated that it is not known at this point how the state plans to meet their budget shortfall and how that will impact the city. Councilmember Kelly asked about the state taking Redevelopment Agency funds that were already committed to a project. Deputy City Administrator, Franz, stated he would find out the procedure and what needed to be done to reserve Redevelopment Agency funds for commitments already made to future projects in the future. Councilmember Green stated that he believed the city fees on a 2,000 square foot residence seemed high and asked how city fees compare to other cities in the Orange County area. The Community Development Director stated that Huntington Beach is in the middle range for fees in Orange County. Councilmember Moulton -Patterson stated it was good to see the Police Department Mobile Task Force being funded through Narcotic Forfeiture Funds. She also stated that the Assistant City Administrator has developed a policy/procedure for hiring consultants. Councilmember Moulton -Patterson also asked what the impact of budget reductions would be at Rodgers Senior Center. Bill Fowler, Superintendent, Recreation/Human Services Division, reported that the Rodgers Senior Center will not have a part-time recurrent employee on Fridays to answer the phone and help people at the counter. Programs not provided by the part-time employee will continue such as pool, bridge, food distribution and handy crafters. Hot lunches will continue on Fridays as this service is provided by Feedback Foundation staff. Councilmember Winchell believed it was a more complete examination of the city financial status that the Council had ever seen. She questioned that the Community Development fees did not seem to be increasing at the same rate as other fees. The City Administrator responded that there is a moderate increase in Community Development fees in Phase I Implementation of the MSI program. Fees will be refined in Phase II and additional increases will be presented at that time. The message he has received from community groups within the city is that if procedures in the growth and development areas are improved they would be willing to pay higher fees. An Operational Audit of the Community Development Department and other departments is proposed to examine what procedures can be expedited The Community Development Director reported on implemented changes and projected plans to improve service, expedite procedures and bring fees in line to cover costs. Councilmember Winchell asked what the impact would be on the reduction of hours at the Oakview Community Center. 1Q2 Page 4 - Council/Agency Minutes - 6/8/92 Bill Fowler, Superintendent, Recreation/Human Services Division, reported on partial closure of Oakview Community Center. The center will be closed on Sunday formerly open 12:00 noon to 5:00 p.m. The center hours on Saturday will be changing to 10:00 a.m. to 4:00 p.m. formerly open 9:00 a.m. to 6:00 p.m. The center will be closing earlier Monday through Thursday at 8:00 p.m. instead of 9:30 p.m. Councilmember Winchell questioned the availability of restroom facilities in the parks and community centers at Edison and Murdy. Jim Engle, Superintendent, Park Development/Recreation Division, reported that the restrooms are part of the building and the city does not have staff to open, close and supervise the restrooms on Sundays. The adult league umpires can open and close the restrooms but there is no supervision. Councilmember Robitaille inquired as to the "pplication of fees. How fees are selected, what percentage of increase is projected, and a long-range plan for proposed fee increases which can be communicated to the public so that they will know what is proposed also that there will be an equal application of the fee increases. Councilmember Kelly stated that the city is a service organization for over 200,000 people and while putting the fee enhancement in place, we need to improve service to the people. Councilmember Green recommended that the Mayor or Deputy City Administrator, Rick Barnard, monitor the budget events at the state level. A representative of th a ci y should go to Sacramento for the budget hearings and communicate at the county and state level that the city is trying to maintain a balanced budget and does not want the state to take funding from the city to balance the state budget. Mayor Silva stated that he had a plan this summer for Councilmember Green and Deputy City Administrator, Rich Barnard to go to Sacramento to lobby for the city. Mayor Silva stated that he had some concerns about raising fees when the economy is in a recession and the unemployment in this area is 7.5%. The Mayor expressed concern about the city having accepted responsibility from the state for maintenance of the beach north of the' -pier -which costs $1.2 million in upkeep. The Mayor also recommended that the cii:consider replacing city vehicles at 100,000 miles instead of the current policy of 70,000 miles. Mayor Silva also stated that employee suggestions should be encouraged. The City Administrator stated that there was an Employee Suggestion Program in effect at this time which has been successful. Discussion was held on the procedures involved in the suggestion program. Further general discussion and concluding comments were made. PUBLIC COMMENTS Mayor Silva called for any speakers for public comments. 103 Page 5 - Council/Agency Minutes - 6/8/92 Mark Pgrter addressed Council regarding problems with traffic, crime. drugs, and gangs which has increased as the population has grown, when new developments are added, they need to pay equitably for services. CLOSED SESSION The Mayor called a Closed Session of the City Council pursuant to Government Code Section 54957.6 to meet with its designated representatives regarding labor relations matters - Meet & Confer. (120.80) The Mayor called a Closed Session of City Council/Redevelopment Agency pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation - Griffin/Related Properties-1 et al - OCSCC 65 40 39. (120.80) ADJOURNMENT - COUNCIL/REDEVELOPMENT AGENCY Mayor Silva adjourned the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to 5:30 p.m., Monday, June 15, 1992, in Room B-8, Civic Center, Huntington Beach, California 92648. Clerk of the Redevelopment Agency and City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California ATTEST: City Clerk/Clerk Mayor/Chairman 1(04