HomeMy WebLinkAboutMinutes-06-27-77-Special MeetingMINUTES OF THE CITY COUNCIL ' 5783
OF THE CITY OF DOWNEY
SPECIAL CALLED MEETING
JUNE 27, 1977
The City Council of the City of Downey held a Special Called Meeting at
4:00 p.m., June 27, 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
Hazel N. Scotto
Richard M. Jennings Mayor
ABSENT: Theodore H. Jackman (arrived at 4:08 p.m.)
ALSO PRESENT: Charles W. Thompson, City Manager
Ervin Spindel, Director of Community Development
John T. Neavill, Director of Parks & Recreation
Edwin H. Wood, Fire Chief
Martin F. Wynne, Acting Director of Finance
John H. Saunders, Assistant to City Manager
Robert L. Shand, City Clerk -Treasurer
Mr. Thompson explained the reason for calling the special meeting is:
(a) to discuss Budget changes; and (b) to discuss the Southern California Edison
Companv "windfall." He said the Edison Company will remit the principal amount
of $560,000 to the City on Wednesday, June 29, 1977. He indicated he will meet
with the Edison representatives on Wednesday to discuss possible penalties for
delayed remittance.
Councilman Jackman arrived at the meeting at 4:08 p.m.
Mr. Thompson reviewed the recap of the opening Fund Balance for the proposed
Budget, plus the remittance from Southern California Edison Company. He plans to
put $150,000 into a liability account and $54,000 to be appropriated for the follow-
ing year Parks Construction Program. $200,000 would be earmarked for the following
year's Liability Reserve.
Discussion followed regarding the next fiscal year's potential losses for
damage claims.
Councilman Jackman thinks the City should take a 50 percent penalty from the
Edison Company for the delay in receiving the money. He asked Mayor Jennings for
his thoughts on what to do with the Edison Company "windfall" money. He argued
that a tax increase would be needed if the City does not make use of the Edison
payment.
Councilman Greene advocates the raising of taxes to meet the City's current
Budget requirements.
Councilman Miller prefers to see the Utility Tax on water revenues eliminated.
Councilwoman Scotto prefers to consider the Edison money at a later date.
Mayor Jennings proposed to place the Edison principal into a reserve account --
to increase the City tax four cents this year and four cents next year.
Councilman Jackman favors using the Edison money for the Budget and sees no
reason for raising taxes.
It was moved by Councilman Jackman, seconded by Councilman Greene, and passed
by the following vote to put the Southern California Edison money into a General
Fund Opening Balance temporarily.
Mr. Wynne explained what will happen and which reserves should be established.
He said $150,000 is required for the Liability Reserve.
Councilman Jackman explained that the report on Damage Claims has not been
received until now per his request.
Mr. Thompson reviewed the proposed Budget plan and explained why the $150,000
Liability Reserve was not included. He prefers to include the $150,000 Liability in
the new Budget by taking the money from the Edison "windfall."
Council Minutes 6/27/77 (Special) -1-
Discussion followed regarding insurance premiums. - 84
Mr. Thompson will report at the first meeting in July regarding the insurance
reserves and insurance premiums. He said the Business License revenue will bring
in an additional $80,000 a year.
Councilman Miller wants to amend the Budget by restoring the Capital Improve-
ment Fund.
Roll call vote:
AYES: 5 Council Members: Miller, Greene, Jackman, Scotto, Jennings
The City Manager was requested to report back in July with recommendations for
including the Edison money in the Budget.
It was moved by Councilman Miller to amend the Budget to delete the Utility
Users' Tax on water. The motion died for lack of a second.
Mr. Thompson reviewed the Capital Improvement Program, and an updated BR-1 was
distributed to the Council.
Discussion took place regarding the Golf Course Improvement Fund report. It
was concluded to leave the $120,000 appropriation in the Golf Course Fund.
At 5:40 p.m. Mayor Jennings recessed the meeting to Executive Session to discuss
Management salaries. The meeting resumed at 6:45 p.m. with all Council Members
present.
Mayor Jennings said the Budget is complete; however, he has questions including
the following: Prefers professional opinion on the proposed Disaster Radio
Communications request; prefers to increase all Co -sponsored Budgets at the rate of
$1,000 for each $12,000 Budget and to prorate all others having a lesser amount.
Councilwoman Scotto and Councilman Jackman disagreed with Mayor Jennings'
proposal.
Mayor Jennings again expressed his preference for decals to be placed on all
City vehicles except the detective cars.
Councilman Greene said he has no objection to the present system.
The Council then reviewed appropriations for Co -sponsored Groups.
At 7:15 p.m., the meeting was adjourned to 6:30 p.m., June 28, 1977, in the
Council Chamber of the Downey City Hall, for study session on the Budget for Fiscal
Year 1977-78.
Robert. L. Shand, City Clerk -Treasurer
Council Minutes 6/27/77 (Special) -2-