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HomeMy WebLinkAboutMinutes-05-23-77-Adjourned MeetingADJOURNED 743 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY MAY 23, 1977 The City Council of the City of Downey held an adjourned regular meeting at 5:30 P.m., May 23, 1977, in the Council Chamber of the Downey City Hall, Mayor Richard M. Jennings presiding. PRESENT: Council Members: Kenneth J. Miller William L. Greene Mayor Pro Tem Theodore H. Jackman Hazel N. Scotto Richard M. Jennings Mayor ALSO PRESENT: Charles W. Thompson, City Manager Ervin Spindel, Director of Community Development Martin Wynne, Acting Director of Finance Terence Middlebrooke, Manager of Revenue John Saunders, Assistant to the City Manager Robert L. Shand, City Clerk -Treasurer Mayor Jennings asked the Council to consider the Downey Rose Float Associa- tion .request for funds to pay flower bill. Mr. Thompson said the Council requested further information and answers regarding the Rose Float's detailed expenditures, and the information was finalized this afternoon. It was suggested this matter be held to the May 24th meeting, inasmuch as it is on the Agenda. Mr. Joe Condran, President of the Downey Rose Float Association, indicated he would attend the May 24th meeting. The request of the Downey Rose Float Association was held to the regular meeting of May 24th. Mayor Jennings announced this is the time for the study session on the proposed Budget for Fiscal Year 1977-78. Mr. Thompson commented the City is in a good position as far as its opening balance is concerned, and about the same as last year. He said the total opening balance is $736,840 Mr. Thompson explained the City needs one-half to one million dollars just to be able to operate. Mayor Jennings recessed the meeting at 5:43 p.m. for a dinner break. The meeting resumed at 6:09 p.m. with all Council Members present. Continuing with his report on the proposed Budget for 1977-78, Mr. Thompson said the City is basically in the same fiscal position it was last -year at this time. He mentioned the revenue picture shows improvements in the Sales Tax, Property Tax, and Utility Tax. Mr. Wynne stated the proposed budget funds available for next year include the balance forward of $736,000; Special Revenue Fund of $775,000; and estimated fund transfers of $948,000. The General Fund totals $13,368,800; the Special Revenue Fund shows $1,904,000; the Enterprise Funds total $2,835,800; and the combined total is $18,108.600. Mr. Wynne reviewed the General Fund and estimated revenue from taxes. Mr. Middlebrooke pointed out that the percentages representing the total budget of the General Fund shows that the percentage of Property Taxes relative to the total budget is decreasing due to other revenues coming into the picture. Mr. Wynne stated the Sales and Use Tax was budgeted at $4,063,000, but is now expected to reach $4,327,000, which is a significant increase over the budgeted amount. He commented on expected revenue from the Real Property -Transfer Tax and Utility Users Tax. Councilman Miller noted that pertaining to purchase of Southern California and :nark Water Companies, their rates are higher and, therefore, the users would pay a higher Utility Tax. Council Minutes 5/23/77 (adjourned) -1- Mr. Wynne explained the revenue from Business License Tax is expected to be $24,000 to $25,000 more than the original estimate. Mr. Wynne said the Franchise Tax has been rising steadily. He mentioned the total budgeted for this fiscal year is $8,056,900, and the estimated total is $8,449,000. Mr. Wynne and Mr. Middlebrooke then reviewed the License and Permit Fees. Mr. Middlebrooke noted the dog license renewal notices will be mailed around the third week of June. Mr. Thompson said an item will also appear in the City's next Communicator. Councilwoman Scotto raised questions regarding Animal Control revenue versus disbursements and decrease in Vehicle Code fines. During discussion regarding revenues, Mr. Thompson explained the CETA Pro- gram is not reflected in the City's revenue picture. Mayor Jennings requested a list of all the City's grants, including Revenue Sharing, their value, and the number of employees involved. Councilman Miller commented on the Property Tax revenue. Questions were raised regarding the Fire Department Budget. Mr. Thompson responded to questions regarding the Water Division Budget and maintenance of the Pico Rivera water system. He explained the City of Downey runs the balling for the other cities involved in the Southeast Area Animal Control Authority. Referring to the General Fund, Mr. Wynne noted the difference between what was budgeted last year and what is expected to come in this year is $546,000, with most of this amount being in taxes, which is also the main reason for the $736,000 begin- ning balance. He commented on estimates for street lights and reviewed the Gas Tax Fund, Special Projects Fund, and Cigarette Tax. Councilwoman Scotto inquired regarding the status of Capital Improvements Projects. Mr. Thompson replied there is no revenue in the Capital Improvements Fund. Discussion followed. Commenting on Capital Improvements, Councilwoman Scotto requested information regarding what was done last year, what is expected to be done this year, and the effect deleting this program will have on the City in the future. Mr. Thompson said the Capital Improvements Program will be submitted to the Planning Commission for consideration and recommendation back to Council. He further explained the Capital Improvements Funds last year were transferred in order to balance the budget, which then eliminated the necessity to increase taxes. Mr. Thompson pointed out the impact of the Capital Improvements may not be known for approximately five years. A discussion was held regarding the Water Budget. Mayor Jennings questioned the expenditures and revenues listed in the Golf Course Budget, as well as the proposed deficit. Mr. Thompson explained a deficit was also projected in last year's budget. He said he will re-examine the Golf Course Budget. Mr. Thompson noted suggested alternatives have been submitted regarding methods on how the City can finance its Budget. He also pointed out that Revenue Sharing Funds can be used in the General Fund. Councilman Greene asked that if the Council chose to increase the Property Tax using a portion for the Library, could those fuuds be earmarked for that purpose? Mr. Thompson replied yes, the Council can specify by resolution that so much of the Tax will go into a special fund for that purpose. Council Minutes 5/23/77 (adjourned) -2 Mr. Wynne commented on his attendance at a meeting on proposed legislation concerning Property Tax relief, which include limits on tax increases in the future, a split tax rate, and split tax roll. Mr. Thompson reviewed the Legislative Budget, which contains budgets for the City Council, City Clerk, and City Attorney. He mentioned there is a City Council election coming up next April, which reflects a $25,000 increase in the budget. The City Attorney has requested he be paid a salary equivalent to what the City has been paying him in mixed fees and salaries, which would increase his retirement benefits. Mr. Thompson suggested the City Council meet with the City Attorney in executive session for further discussion on the request. Mayor Jennings asked if the City's budget includes an increase for salaries. Mr. Thompson replied no additional salaries have been included; however, a contingency amount of $700,000 has been established. A discussion was held regarding the City Clerk's Budget. Mr. Shand responded to questions and noted that if the CETA Grant were discontinued it would greatly effect the microfilming program of the City. Mr. Thompson commented that the increased requirements of PERS have automati- cally increased employees salaries over last year's budget before considering salary increases for this year. Mr. Shand will send a memo to the City Council regarding his Word Processing request. Mr. Wynne commented on increased costs for Kaiser medical insurance, and noted since the Workers' Compensation rates have not been established, the City is using a modification of the State's rates until it can establish its own rates through the self -insured program. He commented on the reserve being maintained for claims filed against the City. Mr. Thompson explained that in the Legislative Budget, there is no change i the number of eployees, and the only new program or activity is the election and the City Attorney's request. In the City Council's portion is included an additional amount for travel. Discussion followed. Councilwoman Scotto asked for a recap of what the City has paid the City Attorney over the past two years. Mayor Jennings questioned how the City can pay PERS benefits to the City Attorney for the Planning Commission attorney. He suggested this matter be held until the Council can confer with the City Attorney. Mr. Thompson reviewed the Non -departmental Budget, including General Fund expenditures for utilities. He said he will provide a recap for the Council show- ing actual amounts for the last two years and estimated for the current year. He responded to questions of the City Council. Councilwoman Scotto advised that members of the Sister City Committee will be present at tomorrow night's Council meeting to discuss discontinuing the student exchange program. Further discussion ensued. The Council set 5:30 p.m., June 7, 1977, for another study session on the Budget. Commenting on the study session scheduled for 5:30 p.m. tomorrow evening for discussing the Downey Community Hospital Budget for fiscal year 1977-78, Councilman Miller noted the Hospital Budget does not provide a balance sheet, nor does it show payments on indebtedness. He further questioned some of the amounts contained in the budget and said they do not total with his figures. Mayor Jennings asked Mr. Thompson to contact the Hospital Administrator and request a survey of salaries, a carry over of the capital expenditure budget for last year, and the payments on indebtedness. Councilman Miller also requested a copy of a study performed by Independent Sound Lab, which was done for the Downey Community Hospital. Council Minutes 5/23/77 (adjourned) -3- 746 At 9:12 p.m., the meeting was adjourned to 5:30 p.m., May 24, 1977, in the Council Chamber of the Downey City Hall, for study session on the Downey Community Hospital Budget for fiscal year 1977-78. The meeting was also adjourned in memory of Mr. Reno Robert L. Shand, City Clerk -Treasurer c and M. JennXn s, Mayor Council Minutes 5/23/77 (adjourned) -4-