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Home My WebLink AboutCC Min 2013-06-04 Seal Beach California June 4, 2013 • Mayor Miller called the Budget Study Session of the Seal Beach City Council to order at 5:30 p.m. in the City Council Chambers. ROLL CALL Present: Mayor Miller; Council: Deaton, Levitt, Shanks, Sloan City Staff: Jill R. Ingram, City Manager Chief Joe Stilinovich, Seal Beach Police Department Chief Joe Bailey, Marine Safety/Lifeguard Sean P. Crumby, Director of Public Works Victoria L. Beatley, Director of Finance/City Treasurer Jim Basham, Director of Community Development Patrick Gallegos, Administrative Manager Linda Devine, City Clerk Also Present: 5 community members and 10 staff members. CITY MANAGER The City Manager began the study session thanking the City departments and staff for their collaborative work in preparing the fiscal year 2013/14 proposed budget and indicated that the City Council Goals were used to develop the budget. BUDGET STUDY SESSION The Director of Finance provided the budget presentation: • The study session will cover the General Fund and Community Organization Grant Requests and the June 6`h study session will cover Capital Improvement Program (CIP); • Budget Development — zero-based budgeting, based on Federal-State-City Council mandates, supplemental requests, revenue based on the prior 3 years of actual receipts, expenses based on historical costs, personnel based on existing employee agreements, capital costs using engineer's estimates, and reserves based on the adopted fiscal policies; • City Council Goals: Maintain and improve public assets and infrastructure, Maintain public safety and quality of life, Ensure long term financial stability, Foster economic and community development, Enhance public, media, and intergovernmental relations, and Enhance organizational development and customer service; • Budget Goals: present a balanced budget, preserve current service levels, preserve core work force, maintain 20%-25% fund balance (fiscal policy), and incorporate Community Organization requests for funding; • General Fund Summary: operating budget only (exclude CIP) — projected revenues ($28,999,500) — projected expenditures ($28,159,620) — estimated excess revenues ($839,880); • Revenues: major sources shown by percentage of revenue — sales tax (19%), property tax (30%), and utility user tax (18%); • UUT Annual Review: as required in MC §4.50.070 — "the rates set forth in Chapter 4.50 (Utility User Tax) shall be reviewed by the City Council on an annual basis at a regularly scheduled meeting in conjunction with the adoption of the budget" — staff recommends no change to the current rate of 11%; • HdL (investment consultant): after recent meeting the fuel and service station sales is off significantly decreasing the estimated revenue by $300,000 which would reduce the estimated excess (surplus) revenues to $539,880. With no objections, Mayor Miller called for a recess at 6:08 p.m. and reconvened the study session at 6:20 p.m. Page 2 - City Council 06/04/12 The Director of Finance continued the presentation: • Expenditures: fire station bonds (2024), OPEB (retirees), GASB 45 (2014), pension bond (2019), senior busing program (created for tracking purposes), COLA (1.3% employee groups), CaIPERS (4% of employee share), part-time hourly rate (COLA increase), police (negotiations in process), and human resources program (created for separate tracking); • Supplemental: personnel requests — part-time intern for city manager office, full-time building staff (in-lieu of contracted staff), and part-time mechanic (in- lieu of contracted staff); • Other Supplemental: Council discretionary fund, school resource officer (Los Alamitos High School), personnel investigations, site specific plan for Seal Beach Tennis Center, and 800 MHz radios (lifeguard and city manager); • Supplemental for Police Department: tasers, 2 mobile data computers, 2 license plate readers, and cameras for detectives; • Supplemental for Public Works: memberships, cellular phones, trainings and meetings, and sewer vacuum truck; • Fund Balance Reserves: beginning fund balance plus annual surplus/deficit equals ending fund balance; • General Fund Estimated Fund Balance: 2013/14 — beginning fund balance $27,684,157, net revenues (expenditures) ($3,535,600), estimated ending fund balance $24,148,557, assigned encumbrances $300,000 — designations $9,207,562 —fiscal policy $7,039,905 — unassigned fund balance $7,601,090; • Adjusted General Fund Summary: projected revenues $28,999,500 less adjustment $200,000 — projected expenditures $28,159,620 include GF CIP $570,000 — estimated surplus $69,880. The Administrative Manager continued the study session: • Community Organization Grant Requests: policy approved on May 29, 2012, funding is for both direct (cash) and indirect (staff time, permit fee waiver, facility use, equipment, etc.), application process was announced in a press release and contact with organizations regarding any on-going requests, staff reviewed applications based on the criteria set in the policy, 8 community organizations qualified; • Funding: total for continuing support $56,570, total for new requests $64,875, grand total $121,445, total city funds available $69,880; • 8 Community Organization Grant Requests: o Seal Beach Lions Club — on-going request $13,210 + new request $4,150 = $17,360; o Run Seal Beach — on-going support $10,030; o Cypress College — new request $2,500; o Save Our Beach — on-going request $500; o Friends of Los Alamitos/Rossmoor Library— new request $20,000; o Seal Beach Animal Care Center— new request $31,925; o Seal Beach Swim Club — new request $6,300; and o Seal Beach Chamber of Commerce — on-going request $32,830 + new request for State of the City and Chamber Board Installation Dinner (no dollar amount) • Joyce Parque spoke on behalf of the Seal Beach Chamber of Commerce asking that Council support their request — there were no other representatives present. With no objections Mayor Miller called for a recess at 7:55 p.m. and reconvened the study session at 8:08 p.m. Mayor Miller asked if there were any members of the audience that would like to address the Council. Speakers: Jon Regnier, Surfside, stated that if the Council is providing support to Leisure World for a private grant then they should consider supporting Surfside for their sand replenishment and storm drain connection; Anne Seifert, Golden Rain Drive, thanked staff for submitting the TIGER grant application and asked that Council set aside $500,000 and staff Page 3 - City Council 06/04/12 time to help complete the process and that Leisure World is intending to apply for several more grants that would need City staff time; Robert Goldberg, Clipper Way, questioned staffs percentage for COLA, need to have a policy on how Council Discretionary funds should be spent, and questioned the emergency power generator for $400,000; David Lyon, Oak Hill Drive, encouraged the Council to support covering the storm drain channel in Leisure World, stated that the streets in Leisure World are too narrow, and asked to set aside $500,000 for the TIGER grant, and Joyce Parque, 6th Street, stated her disagreement with those in Leisure World that keep saying that they are not getting their fair share of revenue and support from the City, they are a private community with no access for other Seal Beach residents. It was the consensus of the City Council to fund all the on-going requests totaling $56,570 and to fund: 2 beach parking permits for the Seal Beach Lions Club - $300 and $10,000 to the Seal Beach Animal Care Center towards their kitchen remodel. With no objections the Mayor adjourned the meeting at 8:40 p.m. to June 6, 2013 at 5:30 p.m. to continue the Budget Study Session (CIP). City Clerk City of Seal Beach Approved: A I ‘11_, Mayor I . Attest: tl ,/ • ,,/ia, / Ci y Clerk 1