HomeMy WebLinkAboutMinutes-06-21-76-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL
OF THE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
JUNE 21, 1976
The City Council of the City of Downey held an adjourned regular meeting at 5:00
p.m., June 21, 1976, in the Council Chambers of the Downey City Hall, Mayor Hazel N.
Scotto presiding.
PRESENT: Council Members:
William L. Greene
Kenneth J. Miller
Theodore H. Jackman
Hazel N. Scotto
ABSENT: Council Member:
Richard M. Jennings (excused)
ALSO PRESENT: Charles W. Thompson, ,City Manager
Ervin Spindel, Director of Community Development
Richard D. Patton, Director of Finance
John T. Neavill, Director of Parks & Recreation
Loren D. Morgan, Police Chief
Edwin H. Wood, Fire Chief
John H. Saunders, Administrative Analyst
Robert L. Shand, City Clerk -Treasurer
Mayor Scotto declared that this is the time and place for the public hearing on
Budget for Fiscal Year 1976-77, which was continued from the regular meeting of the
City Council held June 14, 1976. She inquired if the City Manager had any further
report to render on the proposed Budget.
City Manager Thompson said he had nothing to report at this time.
The City Council reviewed Councilman Jennings' suggestioxs dated May 25, 1976,
which were previously reviewed at the May 25th Council meeting.
Discussion followed regarding the impact of a possible Ile tax increase. It was
ascertained that a $35,000 assessed value property would incur an annual increase of
$7.50. A possible alternative to a tax increase would be to deplete the contingency
fund (in the General Fund).
Continuing with the priorities listed in Councilman Jennings' memorandum, Mr.
Thompson commented as follows:
1. That the Library program should be based on a master plan study currently
under way.
2. A three percent salary increase limitation would present possible legal prob-
lems in view of the Meyers-Milas-Brown Act (meet and confer in good faith).
3. Council expense limitations is an insignificant amount and is lower than the
average paid in surrounding cities.
4. Commercial area street sweeping changes to alternate weeks and every third
week on residential would produce a possible saving of $20,000, or 2/3-cent
on the tax rate.
Community Development Director Spindel reported the City has had an increase in
street sweeping complaints even on the two -week program. He said the vacuum sweeper
has helped in the program, however, a three-week plan would possibly increase
complaints.
Mr. Thompson commented the street crews will be required to go on a weekly sched-
ule during the leaf season.
5. A balance should be retained in the Capital Projects Fund. Reducing the Golf
Course account, just allowing for expansion of the parking, could make addi-
tional moneys available in the Capital Improvement Fund that could be trans-
ferred to the General Fund. Retention of $200,000 in the Capital Improvement
Fund would provide protection against any contingency that occurred; any
amounts over and above that could be transferred and would reduce one or two
cents of the proposed tax increase.
Council Minutes 6/21/76 (Adjourned) -1-
6. Regarding the Animal Control Program, Lynwood and Bell Gardens have indicated
approval to join in the program.
7. Recommendation to boost Water Division Administration charges to $120,000.
8. The Finance Department will establish a transfer system for excess accruals
in the Equipment Replacement Fund. At this time there does not appear to be
an excess of funds in view of the projected equipment replacements.
9. Costs for paving Golf Course parking lot could be decreased by controlling
ingress and egress areas only.
10. Sidewalk Matching Funds include Chapter 27 projects and curb and gutter re-
pairs. Reducing the program by $10,000 would be a substantial cut in that
program. There should be sufficient funds to provide for those who volun-
tarily request sidewalks and/or curb and gutter improvements.
11. Continuation of the landscaping program is a desirable activity. Deletion
is not recommended.
12. The Dump Site Program will eliminate the present problem of complaints from
residents adjacent to dump site areas.
Discussion was then held regarding Revenue for the Budget.
The Recreation and Community Services Commission is to recommend changes in the
Downey Theatre and Park Revenue structure.
A $6,000 reduction on the Co -sponsored Group program would result in possible
loss of some programs. Currently it is difficult to operate the Co -sponsored pro-
grams on existing revenues. It was pointed out citizens participating in Co -sponsored
programs do donate some money.
Mr. Thompson commented on the level of activities supported in the Co -sponsored
groups.
Mayor Scotto inquired if there was anyone present who wished to speak regarding
the Budget.
Mr. Loren Grandey, 8358 Lubec Street, presented a prepared speech relative to the
Budget. He said he represented several persons present in the Council Chambers.
Councilman Miller asked that a pencil and pad be circulated through the audience
and that the names and addresses of interested persons be recorded.
Mr. Grandey commented regarding the assessed valuations relative percentage in-
crease in tax rates; how much revenue is needed by the City; is the City presenting
"gold plate service"; are there too many employees; are new programs and services
necessary; are any old programs being discontinued. He also challenged the need for
a larger Library facility and inquired if service studies have been conducted. In
conclusion, he suggested that priorities be assigned to proposed increases in the Budget
and that the City should emphasize a "hold the line" policy in preparing the Budget.
Mr. Thompson, in responding to Mr. Grandey's comments, explained the City of Downey
tax rate comparison with ten full -service cities in the surrounding area. He said
Downey has a rate that is half again lower than those cities. Mr. Thompson then pro-
ceeded to explain the tax rate structure Downey has utilized since 1958 and the details
of Downey's achievements during the past five years. He said the City has 20 fewer
employees now than five years ago. Mr. Thompson stated no new services are projected
in the proposed Budget. He also indicated the Library problem exists today because
the original Library facility was under -built, and studies show the Library is current-
ly 50 percent understaffed, with the Library Budget one-half as high as the next higher
comparison city. He reviewed statistics from other cities regarding revenues, includ-
ing Utility Users Tax and Sales Tax.
Councilman Jackman asked what services should be cut.,
Police Chief Morgan said he was unable to note where any services could be cut
in the Police Department.
Councilman Jackman commented on the Rives Avenue School. He stated many people
want the school facility.
Councilman Miller asked Mr. Grandey if he was limiting his Budget review questions
solely to the Property Tax revenue or on an overall concept.
Council Minutes 6/21/76 (Adjourned) -2-
Mr. Grandey said no, he is concerned about the continuing upward trend in the
Budget expenditures.
Mayor Scotto spoke regarding a volunteer program and asked whether or not Mr.
Grandey would be responsive to such an undertaking.
Mr. Grandey replied yes, it would be a worthwhile program.
Mr. Mark Poochigian, 8510 Cherokee Drive, commented on marginal spending in the
Budget. He said he noticed the Library book shelves are overcrowded and asked if use
of the school libraries had been considered. Mr. Poochigian indicated the State has
considered a fixed dollar amount salary increase program, and he would favor a Property
Tax rate increase because it is deductible for income tax purposes.
Discussion then followed regarding salary increases, including additives.
Councilman Greene inquired regarding the possibility of a Library fund-raising
committee. He is still interested in such a program.
Mr. Bill Manning, 10308 Haledon Avenue, congratulated the City Manager and Council
Members in the preparation of the proposed Budget.
Mr. Joel Lubin, 7820 Allengrove Street, inquired wherein does the Utility Users
Tax differ from Property Tax. He feels that a Utility Tax could result in energy
conservation and could possibly be used as an incentive to control expenditures through
consumer control.
Councilman Miller spoke regarding the Utility Users Tax exceptions and said he
would prefer to see deductions extended to homeowners through utilization of the
Property Tax instead of the Utility Users Tax.
Mr. Ron Shaffer, 9048 Via Amorita, opposes the Library improvement program. He
said he is a part-time student at Long Beach University and uses the Library quite
extensively.
Mr. Paul Spothelfer, 9708 Haledon Avenue, spoke regarding Councilman Jennings'
proposal on the Budget cuts. He suggested Sidewalk Matching Funds be suspended and
inquired where additional maintenance money would be obtained for the Rives Avenue
School in the event it was purchased.
Mr. Oran Whalan, 7862 Kingbee Street, commented on the continual rise of Proper-
ty Taxes.
Mrs. Elsa Smith, residing on Lubec Street, opposed the Library expansion. She
complained about mosquitos, and "dogs running loose" in the City.
Mrs. Elsa Van Leuven, 10031 Lesterford Avenue, opposed the Library expansion,
commented on the Utility Users Tax, and said it is time to "tighten belts". She
favors self-supporting park programs and stated the City should continue to provide
ground for park programs.
Mayor Scotto declared a recess at 7:35 p.m. The meeting resumed at 8:04 p.m.,
with Council Members Greene, Miller, Jackman, Scotto present; Council Member Jennings
absent.
Councilman Miller called for a survey on temporary employees of five years ago
compared to the present.
Mr. Thompson stated the temporary employee level is the same over the past five
years.
Councilman Jackman asked if the City's 400 employees includes temporary and CETA
employees.
Mr. Thompson replied no, the figure is for permanent, full-time employees of the
City.
Councilman Greene asked if the City has experienced a decrease of 20 employees
in the past few years.
Mr. Thompson said yes, he has had a careful survey conducted, and actually there
are 20-to-24 less full-time employees on the City payroll. However, costs continue
to increase. He emphasized that the departments have not attempted to compensate for
less employees by increasing the temporary employee role. He also said the CETA pro-
gram had no effect on the result of 20-to-24 less employees. Mr. Thompson pointed out
the CETA program allows work to be done that would not otherwise be accomplished, how-
ever, departments tend to eventually rely on CETA services.
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Community Development Director Spindel commented that his department has termi-
nated the student program for summer hours due to the limited Budget.
Councilman Jackman inquired how much of a cutback in services would result if an
additional ten employees were eliminated from the payrolls.
Mr. Thompson said he could not truthfully say; such a move would create some
difficult situations and would result in a reorganization of employee tasks. He stated
no more positions can be eliminated in the Fire Department, and the Police Department
would be forced to cut activities at a time during which such steps should not be taken.
Councilman Jackman said the citizens do not want taxes raised, but they are will-
ing to sacrifice services. He then inquired where sacrifices could be made exclusive
of the Fire and Police Department, and suggested consideration be given to cutting
the DJAA program and then await reaction.
Mr. Thompson said so far there has been a small citizen reaction.
Mr. Thompson noted if ten people were cut from the payroll, this would save
$100,000 for the Budget; an alternative would be to transfer a like sum from the Capi-
tal Improvement Budget. He also stated more revenues are anticipated than originally
projected due to an increase in Sales Tax receipts reflected through increased auto-
mobile sales in the community.
Mayor Scotto questioned flexibility of dropping programs, which might result in
the loss of people who really support the City. She likes the idea of volunteer pro-
grams and feels the people need to have more concern in government. Mayor Scotto
advocated an increase in taxes this year, followed by the implementation of a success-
ful volunteer program, wherein everybody could become involved.
Councilman Greene gave a brief review on the DJAA, stating this organization is
self-sustaining except for the baseball diamonds.
A discussion then followed on the DJAA and Little League, including the extent
of the City's participation.
Mayor Scotto inquired how much would be required to set up a volunteer program.
Mr. Thompson replied one year, and that he would have a better idea in August
regarding the extent of the volunteer program.
Councilman Miller discussed employee maximum production and asked that considera-
tion be given to curtailing certain expenditures such as the Golf Course. He empha-
sized the provision for essential services only, and if people desire certain serv-
ices they should speak out on the matter. Councilman Miller proposed a cutback in
the Budget by eliminating acquisition of the Rives School.
Discussion followed regarding the Budget if no 11G tax increase was levied.
Mr. Thompson said the General Fund would be limited to $10,395,400 if no 110 tax
increase was levied. He stated $1,015,800 transfers would be needed to supplement
the Budget. Use of Federal Revenue Sharing money could serve to fulfill this need.
A discussion was held regarding the Animal Control program. It was noted that
agreements are currently in the process of being signed among the various cities par-
ticipating in the Animal Control program.
Councilman Greene then referred to the Capital Improvement program and asked
where possible cuts could be imposed, including culture and recreation. He called
for deleting improvements for Rio San Gabriel Park, Treasure Island Park, and Furman
Park.
Discussion followed regarding Capital Improvements, including needs for handi-
capped persons.
Councilman Jackman indicated he would like to see a report on this program.
Council Minutes 6/21/76 (Adjourned) -4-
Proposed Capital Improvement Budget cuts are as follows:
General Government .............. $ 15,000
Culture -Recreation .............. 12,000
Golf Course Fund ................ 47,000
Public Ways ..................... 31,000
Pedestrian Facilities ........... 127000
Others .......................... 20,000
Total ........................... $137,000
Mr. Thompson emphasized the need to maintain a $192,000 project reserve in the
Budget. He then proceeded to illustrate on the blackboard the tax levy theory of a
4C per year Property Tax increase spread over three years.
Councilman Jackman said he prefers no tax raises this year and to "hold the line".
He also prefers cutbacks in service without an increase in the tax rate. He said ad-
ditional revenue could possibly be realized on increased assessed valuations plus the
anticipated additional Sales Tax receipts in August.
It was moved by Councilman Greene, seconded by Councilman Jackman, and passed by
the following vote to delete $137,000 from the Capital Improvement Budget.
AYES 3 Council Members: Greene, Miller, Jackman
NOES: 1 Council Member: Scotto
ABSENT: 1 Council Member: Jennings
Discussion resumed on the Library.
Councilman Jackman said he prefers having the 10o tax increase question on the
Library resolved. He proposed the Library question be placed on the November ballot
to allow the people to make a decision on this matter.
Councilman Miller commented the City could have the Library improvement if all
Capital Improvement money was used to finance the Library project.
Councilman Jackman said Councilman Miller's proposal for financing the Library
should be considered for the ballot. He then said the DJAA should be manned by volun-
teers including umpires and referees.
Councilman Greene pointed out this should be checked very carefully.
Mr. Thompson raised the question regarding publication of the Bicentennial editions
in the two local newspapers. He said a program would involve paying $400 to each
newspaper.
The Council concluded that the undertaking should not be considered at this time.,
Finance Director Patton said he would like to have another week to study the lia-
bility insurance proposal and then call a special Council meeting.
Mr. Thompson noted he will need to study the insurance proposal prior to recom-
mendation to the Council.
It was moved by Mayor Scotto, seconded by Councilman Jackman, and so ordered to
adjourn the meeting at 10:05 p.m. to 5:00 p.m., June 22, 1976, in the Council Chambers
of the Downey City Hall, for continuation of the Budget hearing.
VO4� Z�4z
Robert L. Shand, City Clerk -Treasurer
� �G=� y
HazeYN. Scotto, Mayor
Council Minutes 6/21/76(Adjourned) -5-