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Home My WebLink AboutCC Min 1991-06-11 ., . '.- 6-11-91 Seal Beach, California June 11, 1991 I The city Council of the City of Seal Beach met in regular adjourned session at 6:02 p.m. with Mayor Laszlo calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Laszlo Councilmembers Forsythe, Hastings, Wilson Absent: None Vacancy: One Also present: Mr. Bankston, city Manager Mr. Archibold, Assistant City Manager Mrs. Yeo, City Clerk ORAL COMMUNICATIONS There were no Oral Communications. I WAIVER OF FULL READING Forsythe moved, second by Wilson, to waive the reading in full of all ordinances and resolutions and that consent to the waiver of reading shall be deemed to be given by all Councilmembers after reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. AYES: NOES: VACANCY: Forsythe, Hastings, Laszlo, Wilson None One Motion carried I BUDGET WORKSHOP The city Manager asked that this workshop focus on the revenue side of the budget process with a subsequent workshop focusing on expenditures, the intent being to ultimately bring the two together for a balanced budget. He noted that revenue projections at the staff level commenced as early as January, suggested that narrative language be added to the monthly revenue/expenditure reports to identify certain trends, also that the Council hold mid-year budget sessions to establish goals, propose activities that may be considered within future budgets, and to identify potential shortfalls within the current budget. With regard to the State budget, which is yet to be resolved and will surely have an impact on the City's budget, the City Manager said it is now anticipated that SB 2557 will be repealed, that action would result in a $27,000 reduction of Police Department booking fee expenditures, and an increase of property tax revenue by approximately $43,000 by eliminating the County administrative cost for collection of same. He noted various, proposals to balance the state budget, the application of sales tax to all admission tickets, excepting non-profit, with the state sharing back to the cities a portion thereof, however a formula is yet to be developed, another proposal being the application of sales tax to snack foods, the Governor also having indicated a desire to explore sales tax distribution by population rather than point of sale, and should that go forward it would be necessary for the cities to be involved through the League to ensure that the per capita distribution be as unrestricted as possible. He mentioned that Seal Beach sales tax is approximately,,$38 per capita; the State average being $97. -- 6-11-91 The City Manager pointed out that the state invariably looks to the motor vehicle in-lieu despite the efforts of the cities to retain those revenues, and mentioned that the Governor has considered holding cities to the prior year level of receipts where the state would retain the incremental growth amount, however the Senate has proposed that $2.70 per capita be taken from the cities proportionate share, and should that be a net taking the City would realize a revenue loss of $67,764. He reported the Governor's proposal that the State take fifty percent of present non-parking receipts of fines and forfeitures, and with that in mind city staff is presently separating the parking and non-parking violations from the projected $750,000 revenue, the State also looking to prohibit cities from imposing utility taxes and at placing a capped level on taxes on cable, the State proposal at this point is that the state place a 2.5 percent tax on all utilities including cable. The City Manager reported revenues received through May are 88.6 percent of budget projections yet does not reflect overhead that will be realized through transfers from certain funds to the General Fund at year end, therefore total revenues are at 99.3 percent which is basically on target with the projections. He explained the 1990/91 revenues over the 1989/90 actuals reflected a total of all funds growth projection of 4.6 percent, the preliminary budget, as adjusted by staff and with the gap, projects revenue growth of total funds for next year over the year-end estimates of 5.3 percent or a .7 percent revenue increase, which he said is a conservative yet realistic estimate. He offered that the projection does not include any new revenues nor potential state takings. The City Manager pro~eeded with the three-year revenue comparison, describing the specific sources of revenues to the General Fund. With regard to the oil barrel tax, the Assistant City Manager responded that the current tax per barrel was established several years ago, offered that the staff could evaluate that tax and the current leases, and stated the City has accepted the reported production from the oil companies in the past, that production is monitored by the State; otherwise the city would need to place a meter on their lines to verify the production. A suggestion was made that the requirement for owners of apartment houses of six or more units to obtain a business license could be applied to a lesser number of units. A member of the audience suggested an assessment for commercial properties such as that of the City of Pasadena, a square footage fee with a minimum. The City Manager continued his description of the various funds. He noted the budget at this point did not reflect the adjustment of various fees for services that may be revised in the near future to recover the cost of providing those services. He made specific reference to the Intergovernmental Funds, state subventions of taxes on gas sales, where the use of such funds are restricted by the legislation that granted the funds, pointed out also that the State significantly increased gas tax funds last year, however as yet they have not been distributed back to local agencies. He explained that the Parks and Recreation Fund revenue projection was incorrect in that the funds collected throughout the year are eventually transferred to reflect the expenses, that the projected revenue should more accurately be reflected as $1,000. The Assistant City Manager noted that the Park/Recreation Fund did not reflect receipt of the Quimby monies from the Watson First street project in the current fiscal year. Mayor Laszlo indicated his desire to raise the Environmental Reserve Tax that would apply to office and commercial construction, and is allowed to be spent for a variety of uses, also to impose the I I I 1. ,~' .f,:ll:r: I.. . .... ~t'<M~:Jo. 6-11-91 I Traffic Impact Fees. The city Manager advised that there are revenue enhancement programs available to cities, as an example under AB1600 if there is an ability for detailed cost accounting you can establish development impact fees and where you can not fund projects that are needed you can require new development to buy into the existing infrastructure and mitigate traffic impact, that there is also an ability to identify municipal facility impacts based upon an increase of units and population, which could include facilities such as city hall, the street system, water/sewer systems, police facility, etc., however there is a need to develop a nexus, and although more difficult, there is an 'ability to impose a General Plan impact fee for schools, however that process requires an adopted capital project plan and budget, the fees must be cost accounted, and the funds collected must be spent within five years. with regard to General Plan amendments, the city Manager explained that a procedure could be established to recover actual costs of such amendments through the comprehensive fee schedule, with regard to the inequity of the business license fee for large versus small businesses, he pointed out that Rockwell does pay on the basis of gross receipts, which is genera~ly the fee basis for chain stores, and in most cases the accounting method for the large stores is established to pay on a gross receipts rather than a flat fee method. He indicated his intent to recommend a service to review the sales tax generating sources at some point in the future, noting that it is not uncommon for franchise or chain operations to book their sales from a general office rather than from the point of origin in the community, also that he believed there is a method to vary the flat rate structure for business licenses. He explained that these would be areas that could be explored, depending upon the impacts of the state budget, in order to maintain current service levels. There was a brief discussion relating to the loss of monies from the issuance of traffic citations where the offender is either allowed to attend traffic school or is confined for a period of time and no fine is collected. The city Manager noted that staff has been working on, and he would recommend, a full cost recovery program for driving under the influence offenses. Staff explained that there are no additional monies collected through the sportfishing lease or oil boat for pier repairs, however in the event there are damages to pilings at the landing attributable to the boats, payment is sought for such repair. It was suggested that possibly ten or fifteen percent of the lease monies should be placed in a reserve fund for pier repairs. The city Manager pointed out that the budget as it presently exists will continue to be reviewed and revised by staff with emphasis on expenditures, also as it relates to impacts by the State, that he would encourage consideration of revenue enhancements in the form of the comprehensive fee schedule for ~ull cost recovery for goods and services, the DUI cost recovery program, the bus shelter proposal, cost recovery for street sweeping and tree trimming, those enhancements in conjunction with certain cost cutting proposals anticipated to close the revenue/expenditure gap. He noted that application of the utility users tax to cable is not proposed at this time. He expressed his intent to move towards building the liability and workers comp funds to a more acceptable level within the second or third budget cycle, to initiate a program to better analyze and document expenditures for cost recovery, specifically in the area of project review. Upgrading of the computer system was pointed out as a necessary goal, also that there should be a I o I 6-11-91 capital replacement fund to cover rolling stock, and there was further mention of the service that is available to track business activities as it relates to sales tax. Councilmember Forsythe suggested a code enforcement program as a revenue enhancement, making specific reference to noncompliance with the harmful matter ordinance, also the ' installation of parking meters as has been done in Huntington Beach. with regard to code enforcement, the City Manager explained that a program could be developed by the . adoption of a bail schedule for infractions, which is less' than a misdemeanor violation of the Municipal Code, a staff person would be designated to issue and sign off citations, that it is a cost recovery program and a benefit to the entire population. Mayor Laszlo noted that parking meters were installed in the past however did not work in this community. The City Manager suggested that no action be taken on the proposed revenue enhancements at this time, and that a subsequent budget workshop focus on departmental expenditures. I RESOLUTION NUMBER 4059 - DECLARING RESULTS - SPECIAL MUNICIPAL ELECTION - JUNE 4. 1991 Resolution Number 4059 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, RECITING THE FACTS OF THE SPECIAL MUNICIPAL ELECTION HELD IN THE CITY OF SEAL BEACH ON THE 4TH DAY OF JUNE, 1991, DECLARING THE RESULTS THEREOF, AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW." By unanimous consent, full reading of Resolution Number 4059 was waived. Hastings moved, second by Forsythe, to adopt Resolution Number 4059 as presented. AYES: NOES: VACANCY: Forsythe, Hastings, Laszlo, Wilson None One Motion carried I Mr, Charles Antos, 328 - 17th Street, spoke regarding possible budget reductions. He suggested that attention should be paid to memberships and dues, training and meeting expenses, the special departmental item in the City Manager budget that has no specific designated purpose at this time, asked what account sets forth an allocation for liability attorney expenses, questioned the need for the Police Department attorney, suggested a labor cost saving if the City did not co-sponsor special events, questioned city contributions to special events and the cost of the sister city Program. He likewise questioned memberships, dues, training, and meeting expenses of the Police Department, as well as proposed allocations for equipment, special departmental, contract professional services, and intergovernmental, also the need for and cost of the SWAT Team, as well as the need for twenty-four pagers. Mr. Antos questioned the expense for docking the Lifeguard rescue boat, meeting, training, and membership expenses for most __ all departments, monies proposed for microfilming, various consultant services provided under special departmental accounts, an allocation for day care assistance, suggested the carpet replacement cost be placed in the Police Department budget, and inquired about building maintenance of the Fire stations. Mr. Antos objected to the lack of description of a number of line items, and said there are a number of past expenses that should not be repeated in the future. Mr. Joe Orsini, Seal Beach, agreed that there is need for a Code enforcement program, asked that the in-lieu parking program be looked at in terms of possibly increasing the per space cost from $100 to $500. He noted also that there is one participant in the in-lieu program that has I 'I '," ~:~." .. -t 6-11-91/6-17-91 neglected the in-lieu payments, is now being allowed seven days to come current or their Conditional Use Permit will be pulled. I CLOSED SESSION No Closed Session was held. ADJOURNMENT It was the order of the Chair, with consent of the council, to adjourn until Monday, June 17th at 5:00 p.m. for further budget discussions. The meeting adjourned at 8:00 p.m. f.' Clerk and ex-of of Seal Beach Approved: dA~-~-/ Mayor ~~c (f Attest: I Seal Beach, California June 17, 1991 The City Council of the city of Seal Beach met in regular adjourned session at 5:01 p.m. with Mayor Laszlo calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Laszlo Councilmembers Forsythe, Wilson Absent: Councilmember Hastings Vacancy: One Councilmember Hastings arrived at the meeting at 5:03 p.m. Also present: Mr. Bankston, city Manager Mr. ArChibold, Assistant city Manager Mrs. Yeo, City Clerk I ORAL COMMUNICATIONS Mayor Laszlo declared Oral Communications open. Ms. Patricia Worth, Leisure World resident, requested that the Council make no reductions in the Police Department. She said the reason crime statistics in Seal Beach appear to be low is the result'of Leisure World, and recalled that the impact of Police reductions in another beach city resulted in gang activity and the eventual need for more police and pUblic works services. There being no further comments, Mayor Laszlo declared Oral Communications closed. WAIVER OF FULL READING Wilson moved, second by Hastings, to waive the reading in