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HomeMy WebLinkAboutCC Min 2022-06-02 (Budget Workshop) Seal Beach, California June 2, 2022 The City Council met in a Special City Council Budget Workshop (Operating Budget) at 5:30 p.m. in the City Council Chambers. Mayor Pro Tem Varipapa let the Pledge of Allegiance. ROLL CALL Present: Mayor Kalmick Council Members: Varipapa, Moore, Sustarsic, Massa-Lavitt Absent: None City Staff: Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Philip Gonshak, Police Chief Joe Bailey, Chief, Marine Safety Department Alexa Smittle, Director of Community Development Sherry Johnson, Interim Director of Finance/City Treasurer Alayna Hoang, Finance Manager Iris Lee, Acting Director of Public Works Dana Engstrom, Acting City Clerk Ron Roberts, Orange County Fire Authority Jennifer Robles, Management Analyst PUBLIC COMMENTS Mayor Kalmick opened oral communications. Speaker: Michelle Newman, Dan Brandt, Tim Ream, and Rod McCary. Mayor Kalmick then closed oral communications. Acting City Clerk Engstrom announced that no emailed comments were received however, one (1) PowerPoint was received that was distributed to the City Council; and, made available to the public on the City's website. CITY MANAGER REPORT City Manager Ingram indicated she looked forward to the discussion at tonight's meeting. She highlighted a few significant points to be mindful of during tonight's discussion. Staff is very pleased to again be presenting the Council with a draft operating budget that is balanced. She indicated that she did not in any way say that lightly because even through a two-year pandemic, staff was still able to work through significant financial challenges to provide the Council and the community with a balanced budget. City Manager Ingram indicated we wouldn't get here without an incredibly heavy lift from our staff team. In years past, staff didn't talk much about how far we had come from the first initial draft at the staff level to a proposed draft before the Council. This year she did not want that significant effort to go unnoticed. She indicated that as staff discussed with the Council in individual budget briefings over the past few weeks, early in the budget development process staff was looking at a $4.7 million dollar deficit, primarily due to the fact that revenues are not increasing at the same pace as the increasing cost of expenditures to provide the same level of services and programs to our community. She stated that while the executive team worked closely together with our finance team to find a way to make significant expenditure reductions to close the gap between a $4.7 million dollar deficit and a balanced budget without impacting programs and services, as the Council will see tonight, those expenditure reductions aren't sustainable long-term and we need to start right now talking about every opportunity before us to capitalize on new revenue sources. City Manager Ingram thanked each member of the executive management team and their support staff for several months of dedication and their ownership of the budget development process. She especially acknowledged, thanked, and commended Sherry Johnson, for her quiet strength and respectful and supportive leadership over the past six months as our interim Finance Director, and the many, many years of financial expertise and experience that she has gracefully and generously dedicated to our finance department, organization, and community. She also thanked and acknowledged Finance Manager Alayna Hoang for her many years of unwavering dedication and support and the countless hours that both Sherry and Alayna have dedicated to this important process and to our community. BUDGET WORKSHOP Interim Director of Finance Sherry Johnson summarized the Proposed Fiscal Year 2022- 2023 Operating Budget including challenges, General Fund Revenues, appropriations by category, total appropriations (excluding CIP), general fund summary, fund balance General Fund, staffing recommendations, cost allocation plan, fee study, and final takeaways. Interim Director of Finance Johnson concluded the presentation and turned the meeting over to Mayor Kalmick to allow for Council Member questions and comments. Council Members asked questions, discussed possible revenue sources, offered comments, discussed and received clarification about the draft budget presentation, and thanked staff for their hard work in putting the budget together. ADJOURNMENT Mayor Kalmick adjourned the meeting at 7:14 p.m. to Monday, June 7, 2022 at 5:30 pm for the continuation of the Budget Workshop — Capital Improvement Program. '� Vic , Dana Engstrom, Acting City Clerk it /mke.."1y� City of Seal Beach Approved: Joe Kalmick. Mayor ���o ppR,�'�FgC> Attested: 4-�- '" - ana Engstrom, Acting City C1-1'.6 I f•G;F ,‘`\.`�O