HomeMy WebLinkAboutSupplemental - Council Member Shawn Boyd MEMORANDUM
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Date: June 15, 1999
To: Mayor and Members of the City Council
From: Shawn Boyd, Council Member
Subject: Items Continued from 6/7/99 Budget Study Session for FY 1999 /2000
Following the budget workshop on June 30, 1999 there appears a wide disparity between
some Council Members regarding the importance of following our city's laws and how we
spend tax dollars. I am forwarding the recommendations below and will address these during
our budget hearings on June 28, 1999 unless agreements can be reached in the interim.
❑ A cash basis reserve fund no less than one million dollars is required by law. Allocation
of an additional $175,000 is necessary. If the majority of the Council feels it is
appropriate to ignore our city's laws, I intend to voice opposition to the adoption of this
budget. I further must remind my colleagues failing to uphold the laws of the city would
be a violation of the oath of office.
January 25, 1999 the city manager submitted to Council a Strategic Financial Plan and
Utility Tax Report. In which was outlined on page 3 the recommended reserve policy, "it
is prudent for a California municipality of our size to maintain at least 25%, or one quarter
of a year's annual estimated revenues, as unobligated emergency reserves. Currently
reserves are 12%, roughly half of the recommended set aside. The city manager's report
indicates our current reserve levels represent only about one month's operating expenses.
Further,he states"the bottom line: reserves should first be met, and general fund reserve
balances should be roughly double what they are now".
Currently two options exist for Council; fund the reserves as required by law or pass an
Urgency Ordinance to temporarily suspend Ordinance 1165. I will not support suspending
Ordinance 1165 in favor of increased spending.
❑ Deny request for$10,800 to lease additional office space in historic City Hall and$6,000
for office build out and copier relocation. Postpone consideration of this matter for future
budget years.
❑ Discontinue $1,800 for Southern California Associations of Government (SCAG)
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Budget Issues
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❑ Direct City Manager to implement a 10% reduction in office supply budgets for all
departments, (excluding City Clerk, Public Works and Recreation).
❑ Delete $2,500 contribution to offshore oil ban consortium. I strongly oppose donating tax
dollars to any protest group. Will we next be sending money to the anti-nuclear weapons
demonstrators that regularly picket the gate of the Naval Weapons Station or the League
for Coastal Protection?
❑ Last budget cycle, Council directed staff to suspend replacement of the City's public
works fuel tanks and pumps. Staff was directed to return with an emergency operations
and suggestions were made to purchase a portable tank, install tanks in the public works
supervisors truck beds, purchase manual siphons for commercial facilities, or arrange for
fuel supplies with the navy.
Council was informed emergency fuel supplies could be available at the Weapons Station.
However, again $150,000 appears in the budget to replace tanks and pumps at the
corporation yard. We should again deny the request and re-program $125,000 of these
funds to increase availability to complete priority projects or meet reserve requirements
and designate $25,000 to be held in reserve for conventional and alternative fuel
contingencies.
o 8th street public beach parking lot improvements, Eisenhower park and beach lot overhead
underground wiring expenditures totaling $83,000 can be delayed until future budget
years. Holding $30,000 in designated reserve would be appropriate.
o The sea wall (groin) beneath the pier is crumbling and in need of repair to prevent
complete failure. Moffat & Nichol recommended rehabilitation of the sea wall (groin)
more than five years ago and no repairs have been made to date. A minimum of$25,000
is necessary to establish reserves to complete the necessary repairs. Replacement costs of
the groin would exceed half to three-quarters of a million dollars conservatively.
o $8,000 has been requested to replace City Hall's main doors with self—opening doors to
meet ADA requirements. I suggested the use of Community Development Block Grant
money and received no comment.
o Public works storm drain master plan C.I.P. has $200,000 dollars budgeted with no
projects specified. I am requesting $75,000 be programmed for the 10th Street flooding
problem in front of St. Anne's church.
o Delete $20,000 for digital aerial photo for G.I.S. system and delay until further notice.
o Delay $8,750 purchase of CADD/GIS computer program for future budget year.
o No personnel budget should increase by more than 4-6% (police support services is
perhaps the only exception). Example: Public Works/Engineering Department personnel
budget increases 21% from the previous year. A reduction is clearly in order.
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Budget Issues
❑ Other spending reductions were agreed upon at the budget workshop and the City
Treasurer has recorded those if there are questions.
❑ FY 98/99 Capital Improvement Projects budget specifies $40,000 for Lampson Avenue
improvements, with $20,000 budgeted in the four subsequent years, totaling $100,000.
The C.I.P. budget document submitted to Council for FY 99/00 provides no money for the
Lampson improvements for current or future budget years. A budget that was to be
$100,000 at the end of the five-year C.I.P. has disappeared.
Significant discussion occurred at the budget study session regarding the pavement
management plan. Council Member Campbell's point regarding the need to prioritize
funds for street repair in CPE, utilizing those funds previously designated for Lampson
Avenue improvements was opposed, with Council opposition citing the need to adhere to
the pavement management plan. The pavement management plan clearly places a high
priority on some of her requested repairs.
The City Manager has indicated revenues will increase in FY 99/00 by 4% and
expenditures will increase by 5%. This relationship is inverse and requires correction prior
to adoption of the budget. Under no circumstances should new expenditures increase in
greater proportion than new revenues.
The budget document as submitted addresses many pressing and long ignored problems
citywide. However, significant financial policy issues for Council are being dismissed in
favor of staff's spending recommendations. I must again remind my colleagues that the
fiduciary responsibility for the city is clearly one of our greatest challenges. Again, I
encourage you to examine the budget and consider my recommendations carefully. I am
confident you will find them consistent with our goals of making Seal Beach a better place to
live for everyone.
Please contact me with any questions. Thank you.
PC: City Manager
City Treasurer
City Clerk
City Attorney
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Budget Issues