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Home My WebLink AboutCC Min 2015-06-04 Seal Beach California June 4, 2015 , 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 led the Salute to the Flag. ROLL CALL Present: Mayor Deaton Council Members: Sloan, Miller, Massa-Lavitt, Varipapa City Staff: Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Chief Joe Stilinovich, Seal Beach Police Department Chief Joe Bailey, Marine Safety/Lifeguard Sean R. Crumby, Director of Public Works Victoria L. Beatley, Director of Finance/City Treasurer Jim Basham, Director of Community Development/Comm unity Services Tina Knapp, City Clerk CITY MANAGER The City Manager began the study session thanking the City departments and staff for their collaborative work in preparing the fiscal year 2015/16 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 2015-2016 budget process; • Budget Development — zero-based budgeting developed based on Federal, State and City Council mandates, supplemental requests; revenue based on the prior three years of actual receipts adjusting for one-time events and known trends, General Fund revenue; expenses based on historical costs, adjusted for one-time events and known price increases; personnel costs based on existing agreements; capital based on project costs using Engineer's estimates; reserves based upon 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 — maintain reserve requirements), foster economic and community development, enhance public, media, and intergovernmental relations, and enhance organization development and customer service; • Budget Goals: present a balanced budget, preserve current service levels, preserve core work force, and maintain 20%-25% fund balance; • Budget Challenges: accounting change for CaIJPIA insurance premiums, structural changes in CalPERS practices (amortization and rate smoothing, mortality, and unfunded liability), and Orange County Fire Authority annual contract increase; • Revenue Projections: the top three changes in projections — property taxes ($761,900), utility users tax ($400,000), and use of money and property ($261,800); • Major Revenue Sources: sales tax, property tax, and utility users tax (UUT) make up about 65% of revenue and revenue assumptions are conservation, based on historical trends and current economic information; • UUT Annual Review: November 2014 — Ordinance 1643 requires annual review of UUT in conjunction with the annual budget, estimated to generate $4.9 million in FY 2015-2016, 2nd or 3rd largest revenue source, used to maintain essential services, changed from 11% to the current rate of 10%, and recommend no change to the current rate; • Expenditure Estimates: p Fire station bonds - $579,700 (principal and interest—4/15/2024) > OPEB - $239,100 lifetime medical (retirees) Page 2 - City Council 06/04/15 ➢ GASB 45 — scheduled to be paid quarterly (include $345,900 from Actuarial Report) ➢ Pension bond - $1,177,900 (principal and interest); police—6/15/2019 • Expenditures: ➢ COLA— 1.0% for Executive, Mid-management, SBSPA, OCEA, POA, and PMA ➢ Miscellaneous employee share of CalPERS increases to 7% ➢ As of July 1, 2015 all employees are fully paying the employee share • Council Discretionary Fund Review: District 1 — Main Street Lighting improvements, replace color in hanging baskets, install red poinsettias, install pavers — Heritage Square, landscape Main & Electric, and Seal Beach Blvd. & PCH turf removal; District 2 — landscape Northgate Road, remove media tree CPW, install drip irrigation, install trees CPW median, and remove plant material; District 3 —Animal Care Center; District 4 — install drains and French drains, concrete pad — Tennis Center, landscape improvements — Lampson, and Tennis Center curb & drain; District 5 — drip irrigation — Seal Beach Blvd. and plant material and mulch — Leisure World; • General Fund Summary: Project revenues $29,880,000 — projected expenditures $29,856,600 —estimated surplus $23,400; • Fund Balance Reserves: beginning fund balance plus annual surplus/deficit equals ending fund balance; • General Fund Estimated Fund Balance: 2015-2016 — beginning fund balance $27,229,497, net revenues (expenditures) ($7,658,500), estimated ending fund balance $19,570,997, assigned for encumbrances $208,103 — designations $4,121,093 — fiscal policy $7,467,800 — unassigned fund balance $7,774,001, total estimated General Fund balance 19,570,997; With no objections, Mayor Deaton called for a recess at 6:55 p.m. and reconvened the study session at 7:05 p.m. The Director of Finance continued the proposed budget presentation: • Supplemental: personnel requests —'none; • Additional discussion points: ➢ Centennial expenses ➢ Non-profit grant requests ➢ OPEB funding — updated actuarial valuation, presentation (July/August) ➢ Classification & compensation study ➢ Council discretionary ➢ ACC-OC membership • Adjusted General Fund Summary: Revenues over expenditures plus adjustments —estimated surplus $48,200. Councilmembers received clarification during the presentation. Mayor Deaton indicated that she is interested in assessing expenditures for the City's forestry (planting trees and watering of same). Mayor Deaton would like to allocate money to the Seal Beach Animal Care Center and move Eisenhower Park from the study phase to the design phase. Mayor Deaton also inquired about beach grooming and repair of the City's antique fire engine. Mayor Deaton thanked everyone involved in asset seizure and indicated she would like to discuss a travel policy at the next Council Goals Workshop. Mayor Deaton asked if there were any members of the audience that would like to address the Council regarding the general budget. Speaker: Jim Caviola, Ocean Avenue, spoke about the watering of trees and the cost of purchasing trees and watering them. Joe Kalmick, Seal Beach resident, spoke about the City's antique fire engine and its need for rehabilitation (paint, upholstery). With no objections, Mayor Deaton called for a recess at 7:45 p.m. and reconvened the study session at 7:55 p.m. Mayor Deaton asked if there were additional members of the audience that would like to address the Council regarding the general budget: Speaker: Esther Page 3 - City Council 06/04/15 Kenyon indicated that she hopes the grant request she submitted is approved. Joyce Parque, Old Town resident, inquired as to how merit increases were determined for staff. Rondie Winkler, Leisure World, spoke regarding more inclusion of Leisure World. Another Leisure World resident spoke about transportation available to Leisure World residents. Robert Goldberg, Seal Beach resident, commented on the watering of trees, the classification & compensation study, and the Seal Beach Detention Center. Bruce Bennett, Seal Beach resident, commented on the watering of trees. Conclusion: The Council directed staff to determine a way to maintain the proposed budget for the City's forestry and balance the planting of trees with the watering of.the same and to work with the City Tree Advisory Board to determine the process of doing so. Staff was also directed to transfer Eisenhower Park from the study phase to design. It was also determined that if money remains at the end of the fiscal year in the budget allocated for the City's fleet that money be spent on rehabilitating the City's antique fire engine. With no objections the Mayor adjourned the meeting at 8:20 p.m. to June 8, 2015 at 5:30 p.m. to meet in closed session, 7:00 p.m. for the regular Council meeting, and immediately following the regular Council meeting to continue the Budget Study Session (GIP). City Clerk City of Seal Beach Approved: de� Mayor Attest: rw-dj L61y2�° '--- City Clerk.