HomeMy WebLinkAboutItem C/U'sNZeex
AGENDA STAFF REPORT
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DATE: June 12, 2017
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Robin L. Roberts, City Clerk
SUBJECT: APPROVAL OF CITY COUNCIL MINUTES
SUMMARY OF REQUEST:
That the City Council approve the minutes of the Special City Council Study
Session held on May 24, 2017.
BACKGROUND AND ANALYSIS:
This section does not apply to this item.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
FINANCIAL IMPACT:
There is no financial impact for this item.
RECOMMENDATION:
That the City Council approve the minutes of the Special City Council Study
Session held on May 24, 2017.
SUBMITTED BY: NOTED AND APPROVED:
Robin L. Roberts, City Clerk Q". Ingram, City I a alter
Agenda Item C
Seal Beach, California
May 24, 2017
The City Council met in a Special Study Session at 5:32 p.m. in the City Council
Chambers. Mayor Massa -Lavitt led the Salute to the Flag.
ROLL CALL
Present: Mayor Massa -Lavitt
Council Members: Varipapa, Deaton, Moore, Sustarsic
Absent None
City Staff: Jill R. Ingram, City Manager
Patrick Gallegos, Assistant City Manager
Interim Chief Joe Miller, Seal Beach Police Department
Chief Joe Bailey, Marine Safety/Lifeguard
Victoria L. Beatley, Director of Finance /City Treasurer
Crystal Landavazo, Interim Director of Community Development
Steve Myrter, Director of Public Works
Robin L. Roberts, City Clerk
Alayna Hoang, Finance Manager
CITY MANAGER REPORT
City Manager Jill Ingram indicated she is pleased to report a balanced budget ensuring
healthy reserves through the Council's Fiscal Policy. She noted that this is a
collaborative team effort that begins in January with staff and City Council. City
Manager Ingram noted that we each take ownership of the budget and noted that this
year the City faced significant expenditure increases beyond our control while
maintaining excellent services and preserving the quality of life expected in Seal Beach.
City Manager Ingram thanked the City Council for their policy guidance, the executive
management team and their teams for their collaborative efforts and Director Beatley
and Finance Manager Hoang for their financial expertise.
BUDGET STUDY SESSION
Director of Finance /City Treasurer Victoria L. Beatley and Finance Manager Alayna
Hoang provided the 2017 -2018 FY Budget PowerPoint presentation.
• Overview of the FY 2016 -2017 Budget process.
• Municipal Budgeting 101: Discussion of a balanced budget.
• 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; personnel costs
based on existing agreements noting that Public Safety agreements are still
under negotiations; Capital based on project costs using Engineer's estimates;
and reserves based upon adopted Fiscal Policies.
• Seal Beach Mission Statement: The City of Seal Beach provides excellent city
services to enhance the quality of life and to preserve our small town character.
Page 2 — City Council 5/24/2017
• Core Values/Guiding Principles: Excellent customer service; mutual respect;
teamwork; professionalism; and honest and ethical behavior.
• City Council Goals: Provide a quality and pier environment, including a
restaurant; achieve short and long -term fiscal sustainability; improve and
maintain infrastructure and facilities; attract, develop, compensate and retain
quality staff; and enhance public safety.
• Budget Goals: Present balanced budget; preserve current service levels;
preserve core work force; and maintain 20.25% fund balance.
• Budget Challenges: Oil related revenues; Franchise fees; structural changes tin
CalPERS practices; Orange County Fire Authority; and Joint Powers Insurance
Authority.
• Revenue Projections: Top changes in projections are Property Taxes at
$268,300, Franchise fees at - $172,600, Transient Occupancy Tax at $100,000
and Barrel Tax - $50,000.
• Major Revenue Sources Percentages: Sales Tax 15 %, Property Tax 35% and
Utility User's Tax 15 %. Revenue assumptions are conservative, based on
historical trends and current economic information.
• Utility User Tax Annual Review: November 2014 - Ordinance 1643 requires
annual review of UUT in conjunction with the Annual Budget. Estimate is to
generate $4.5 million in FY 2016 -2017, is the 2nd or 3rd largest revenue source
and is used to maintain essential services at a current rate of 10 %.
• Expenditure Estimates: Fire Station Bonds - $519,000 (principal and interest —
04/15/2024); OPEB - $305,200 lifetime medical (Retirees); GASS 45 — scheduled
to be paid quarterly (include $144,500 from Actuarial Report); Pension Bond -
$1,258,200 (principal and interest) and Police - (06115/2019); COLA — 2.7% for
Executive, Mid - management, SBSPA and OCEA.
• Council Discretionary Fund Review: Included all Districts.
• General Fund Summary (Operating Budget Only) FY 2017 -2018 Budget
Revenues over Expenditures: Projected Revenues $30,195,900; Projected
Expenditures $30,184,900; and the Estimated Surplus is $11,000.
• General Fund Balance: Estimated General Fund Balance is $14,514,570.
• Supplemental Requests: Management Analyst Part-Time; two Police Officers;
eliminate an Officer, add a Sergeant; renovate Detective Bureau; Police
Department building security/access control expansion; two Police Aides for
parking division; and three Marine Safety Officers.
• Additional Discussion Points: Non - profit grant request in -kind services only;
Classification and Compensation Study; DEA Officer funded by Asset Seizure
fund; labor negotiations with Police Management Association; Police Officer's
Association; and Marine Safety Management Association; Fees; and surplus and
reserves.
Council Members received clarification during the presentation and staff received
direction to present funding options for the supplemental request of two additional
Police Officers.
Page 3 - City Council 5/24/17
ORAL COMMUNICATIONS
Mayor Massa - Lavitt opened oral communications. Speakers: Seth Eaker thanked staff
for a detailed report and expressed interest in many budget related topics. Robert
Goldberg thanked staff for the detailed report, thanked Council Member Deaton for
discussion regarding the Orange County Fire Authority contract and then addressed his
questions and concerns including spreadsheet calculations and long term stability.
Bruce Bennett thanked staff for the detailed report and inquired about specific budget
item increases.
Director Beatley briefly clarified questions asked during oral communications.
ADJOURNMENT
With no objections, Mayor Massa - Lavitt adjourned the meeting at 9:02 p.m. to Tuesday,
May 30, 2017 at 5:30 p.m. for a Special Study Session — Budget Workshop, Capital
Improvements Projects.
Approved:
Sandra Massa - Lavitt, Mayor
Attested:
Robin L. Roberts, City Clerk
Robin L. Roberts, City Clerk
City of Seal Beach