The URL can be used to link to this page

Home My WebLink AboutCC Min 2014-05-29Seal Beach California May 29, 2014 Mayor Deaton called the Budget Study Session of the Seal Beach City Council to order at 5:30 p.m. in the City Council Chambers and Councilman Levitt led the Salute to the Flag. Mayor Deaton announced the study session will be audio recorded and available on the website and Councilman Miller will be using his personal tape recorder for his personal reference. ROLL CALL Present: Mayor Deaton; Council Members: Levitt, Miller, Shanks Absent: Council Member: Sloan City Staff: Quinn M. Barrow, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant 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 Linda Devine, City Clerk With no objections, Mayor Deaton so ordered Mayor Pro Tern Sloan excused from the meeting. Also Present: 12 community members and 16 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 2014/15 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: • Overview of the FY 2014 -2015 process; • Budget Development — zero -based budgeting, based on Federal- State -City Council mandates, supplemental requests, revenue based on the prior 3 years of actual receipts adjusting for one -time events, expenses based on historical costs adjusted for one -time events and known price increases, personnel costs 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 (preserve service levels — exercise fiscal discipline in decision making — maintain reserve requirements, Foster economic and community development, Enhance public- media - intergovernmental relations, and Enhance organization 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; • Revenue Projections: major sources shown by percentage of revenue — sales tax (16 %), property tax (32 %), and utility user tax (19 %); • UUT Annual Review: (required per MC §4.50.070) — FY 2014 -2015 estimated to generate $5.3 million, 2nd or 3`d largest revenue source, used to fund General Fund capital projects, staff recommends no change to the current rate of 11 %; • Expenditure Estimates: fire station bonds (2024), OPEB (retirees), GASB 45 (2014), pension bond (2019), created a new program for West Cities Police Page 2 - City Council 05/29/14 Communications (WestComm) JPA (separated out from police department budget for better tracking), COLA (1.4% employee groups other than police), CalPERS (6% of non - police employee share — 12% police), part-time hourly rate (minimum wage increase); • Council Discretionary Fund Review: District 1 — Christmas decoration, hanging flower pots (hardware, plants, and watering from April to July) for new Main Street lights, and replanting Main Street planter after car show; District 2 — North Gate Road bicycle safety and landscape improvements and 1 College Park Drive landscape improvements; District 3 — Long Beach Transit bus stop improvements; District 4 — Seal Beach Tennis Center replacement of drinking fountain and Lampson Avenue landscape improvements; District 5 — North Gate Road bicycle safety and landscape improvements; • General Fund Summary: Project revenues $28,643,300 — projected expenditures $28,587,500 — estimated surplus $55,800 • Fund Balance Reserves: beginning fund balance plus annual surplus /deficit equals ending fund balance; • General Fund Estimated Fund Balance: 2014/15 — beginning fund balance $27,867,023, net revenues (expenditures) ($3,139,200), estimated ending fund balance $24,727,823, assigned encumbrances $165,728 — designations $8,366,153 — fiscal policy $7,146,875 — unassigned fund balance $9,049,067; • Adjustments after draft budget was distributed: Revenues — oil production +$25,000 and fee schedule changes +$50,000 — Expenses — insurance ($50,000) and POA/PMA employees CalPERS contributions ($247,800); • Supplemental: personnel requests — full -time account clerk (cashier) — full - time Corporal (in -lieu of Emergency Coordinator) — full -time Detective (revenue neutral); and • Adjusted General Fund Summary: Revenues over expenditures plus adjustments — estimated surplus $428,600 - additional adjustments: Supplemental personnel - $80,500 and set asides for Salon Meritage Memorial $80,000 — Centennial $150,000 — estimated surplus $118,100; Council members received clarification during the presentation. Mayor Deaton asked if Council members had any further questions at this time — Councilman Miller indicated that he would email his questions to staff — Mayor Deaton requested that a report on legal services be presented at the June 2nd study session. Mayor Deaton asked if there were any members of the audience that would like to address the Council regarding the general budget. Speaker: Seth Eaker, 11th Street, pointed out his concerns and comments regarding parking in -lieu, business licenses, transit occupancy tax, franchise fees, city attorney services, special event costs, and police support costs. With no objections, Mayor Deaton called for a recess at 6:42 p.m. and reconvened the study session at 6:55 p.m. The Director of Community Development/Community Services and the Recreation 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, 17 community organizations qualified (received 44 requests — 30 new and 14 recurring); • Funding: total for indirect $64,622 and direct $75,364 — 2013/14 requested totaled $121.445 (granted $65,000) 2014/15 requests $139,986; and Representatives from the different organizations /groups were present to speak regarding their requests. Page 3 - City Council 05/29/14 Each Council member will further review and prioritize the grant request applications and make their decisions at the June 2nd study session. With no objections, Mayor Deaton stated the City Council will allocate $100,000 towards the grant requests. With no objections the Mayor adjourned the meeting at 8:15 p.m. to June 2, 2014 at 4:30 p.m. to meet in closed session and at 5:30 p.m. to continue the Budget Study Session (CIP). 4Ci Clerk City of Seal Beach iii Attest: City Clerk