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HomeMy WebLinkAboutMinutes - May 6, 2003 SMLODI CITY COUNCIL SPECIAL CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 6, 2003 A. CALL TO ORDER / ROLL CALL The Special City Council meeting of May 6, 2003, was called to order by Mayor Hitchcock at 7:04 a.m. Present: Council Members — Beckman, Hansen, Howard, Land, and Mayor Hitchcock Absent: Council Members — None Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston B. REGULAR CALENDAR B-1 "Review and discuss fiscal years 2003-05 Financial Plan and Budget alternatives" Deputy City Manager Keeter reviewed the budget calendar (filed) and noted that Council Members would be given an opportunity to meet with the City Manager to review the 2003-05 budget after its release tomorrow. Finance Director McAthie reviewed the report (filed) outlining scenario 5 as follows: ➢ The hire lag in the 1St year would be 10 positions, and 15 positions in the 2'd year; ➢ The Arts Commission grant program, Downtown Lodi Business Partnership, Convention and Visitor Bureau, Chamber of Commerce, Kid's Night Out, and the San Joaquin Partnership would remain at their current funding amounts; ➢ Public Works intern hours of $22,000 would be included in the budget, and Public Works would offer additional budget reductions for this amount; ➢ Part-time hours in Administration would be included in the budget, and the City Manager would offer additional budget reductions for this amount; ➢ The Protocol Account has been reduced by $4,000; and ➢ Council Members' business expense accounts would be reduced by $3,200 overall. Ms. McAthie reported that scenario 5 ends with $3.1 million in the 151 year (14.71% fund balance) and nearly $2.5 million in the 2'd year (12.19% fund balance). City Manager Flynn stated that the City's reserves are approximately $3 million higher than what is projected on the report. He explained that there is money in the liabilities and Workers Compensation accounts, as well as undesignated and unrestricted monies in the capital account. He noted that these accounts are treated like separate funds to make certain that they are not thought to be available for any other purpose. An example of restricted reserves would be money from Certificates of Participation in the capital account. Designated reserves would be accounts such as liability and Workers Compensation that are designated for a specific purpose, but are not restricted for that purpose. He reported that $700,000 was paid in advance to CalPERS to take into account that (at the time) they were not billing the City for the employees share. Water, Sewer, and Electric enterprise funds are treated separately. There is also some transportation money that is treated separately because it cannot be used for any other purpose. The tax sharing agreement with the County may also affect the City's revenues. The County's latest proposal is an 85/15 split for annexations where there is not a fire district. For annexations with fire districts, the County is proposing a 95/5 split. The County has indicated that it would not approve the agreement until cities adopt the County's impact fees. Mr. Flynn reported that at the last meeting, the city managers countered by asking the County to adopt the impact fees in the cities' sphere of influence due to the impact that results when county development occurs adjacent to cities. Mr. Flynn stated that a suggestion was made to decrease discretionary expenditures on food and beverages, which totals $22,000 annually. The bulk of these expenses are for three annual events: 1) reception honoring citizen volunteer service and retirements on various boards and commissions; 2) Council and new Mayor's inauguration reception; and 3) City employees' holiday appreciation reception. Coffee, beverages, and refreshments are also provided for Council meetings. Continued May C 2003 Council Member Land suggested that food not be provided for Council meetings unless they begin at 5:30 p.m. or earlier, to which Mayor Hitchcock agreed. In reply to Council Member Land, Mr. Flynn stated that, if approved, Assembly Bill 1221 would not impact the City's budget in the 11s' year. He noted that AB1221 stipulates that cities would give the State half of their sales tax and the State would reimburse cities the value of that in property tax. Mr. Flynn stated that because Lodi is a low -growth community, it will not see a lot of residential growth and would lose money in sales tax over the long run. He believed that the beneficiaries from AB1221 would be schools. Council Member Hansen commented that a recent article quoted Insurance Commissioner John Garamendi as saying he believed the Workers Compensation system in California is heading for collapse. There has been resistance to taking any corrective action, and it appears the collapse may happen before warnings are listened to. He noted that Lodi's Workers Compensation costs have increased 100%. In answer to questions posed by Council Member Hansen, Mr. Flynn reported that there are currently ten vacancies in the City. Scenario 5 shows that the goal through attrition is to get to 20 by June 30, 2004, and 25 by June 30, 2005. Ms. McAthie clarified that the carryover projected for the 1 at year is $700,000 and $500,000 in the 2`d year. This lower amount was projected due to reduced budgets. Regarding the share of medical coverage, Ms. McAthie stated that a calculation of the payroll system showed that it would be roughly $300,000, and $200,000 was budgeted as a conservative amount. Council Member Beckman reported that he has discussed issues related to the Downtown Lodi Business Partnership (DLBP) with Darrell Didreckson. Mr. Beckman reported that over the past three years parking fines have ranged between $41,000 and $44,000 annually. He suggested that parking fine revenues be transferred to the DLBP in lieu of the annual contribution by the City of $47,000. He asked that this be considered at a future meeting. Mr. Flynn noted that staff is gathering information on how other cities handle their Business Improvement Districts. Mr. Flynn stated that he believed the Council needed to take more control over this issue. He read the following, `The City Council shall have sole discretion as to how the revenue derived from the tax is to be used within the scope of the above purposes." He stated that these purposes include acquisition, construction, maintenance, parking facilities, decoration of any public place, promotion of public events, furnishing of music, and the general promotion of retail trade activities in the area. He emphasized that the Council is ultimately responsible. The DLBP is advisory to the Council. He commented that the DLBP would likely be more successful if there were a major national retailer in the downtown area. Council Member Beckman asked whether his suggestion could be considered as part of the 2003-05 budget. He reiterated that he was recommending turning over the fines for parking to the DLBP as its source of funding from the City and as a tool to empower the DLBP and fund itself. The DLBP could set the times, fine amounts, and parking limits. Mr. Flynn anticipated that the matter could be brought back to Council this summer. He commented that by fall, the Council would likely be reconsidering the budget once the State's impacts are known, and any changes that are made at that time would be incorporated into the 2003-05 budget. Council Member Hansen pointed out that the City would still be issuing the parking citations, and saw the potential for conflict with the DLBP who might believe that the City was not writing enough citations, or had enough enforcement. In reply to Council Member Hansen, Mr. Flynn clarified that the City's annual contribution to the DLBP has been $47,000. Any amount above that was for one-time purchases. 2 Continued May 6, 2003 Mayor Hitchcock recalled that the DLBP's warning that it might go out of business was in response to the suggestion that the $39,000 for the banners be taken out of the $47,000. The remaining amount would not be enough to operate. Council Member Hansen concurred with Council Member Land's earlier suggestion not to have food available for Council meetings unless they begin at or before 5:30 p.m. Mayor Pro Tempore Howard noted that scenario 5 shows a healthy fund balance and thanked staff for their hard work. In response to questions by Mayor Hitchcock, Mr. Flynn stated that Police, Fire, and dispatchers would not be affected by the hire lag. If layoffs became necessary, the first to be affected would be the ten current vacant positions. Following that, each position would be evaluated as to its impact upon services in the community, the individual involved, and the morale of the people who work with them. He acknowledged that attrition would also have an impact on services, but it would not have as deleterious an effect on the morale of the organization. He stated that if after six months there was little or no attrition, he may in January 2004 have to recommend formal staff reductions to Council. If the State's budget impacts are significant, Mr. Flynn stated that the next step would be to look at program reductions. In reference to possible reductions in staff, he stated that they would likely begin with contractors, temporary employees, part-time employees, and then regular employees. Council Member Hansen contended that part-time employees are less costly and yet the amount of services they provide can be significant. He asked how many employees have been hired in the past five years. He commented that due to the number of employees added during good years, if the trend must reverse for a year or two it might be difficult, but he did not see it as devastating. Ms. McAthie reported that 19 positions were added in the 2001-03 budget; however, a large portion of these positions were to convert contract employees that were part-time working full-time hours. She noted that normally approximately five positions are added citywide during a budget cycle. Mayor Hitchcock asked that a report on the hiring history of general fund employees be provided to Council. C. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None. D. ADJOURNMENT There being no further business to come before the City Council, the meeting was adjourned at 8:05 a.m. ATTEST: Susan J. Blackston City Clerk 3 2003-05 Financial Plan and Budget Instructions MAJOR BUDGET PREPARATION MILESTONES PUBLIC STAFF MEETINGS Review of Fiscal Policies and Presentation on Bond Rating 11/19/02 Review 2001-02 Budget vs. Actual Discuss Budget Calendar and Proposed Financial Strategy Issue Budget Instructions to Departments Adoption of Fiscal Policies and Budget Format Discussion on City Council Goals — Special Council Meeting Discussion on City Council Goals - continued Discussion on Status of Highest Priority Projects City Manager Revenue Review Departments Submit Budget Requests to Finance Department City Council Review of Revenue Assumptions City Manager Review of Budget Requests Discuss Significant Expenditure & Staffing Requests Discuss Capital Improvement Requests Discuss Budget Scenarios Discuss Budget Scenarios -continued Discuss Fund Balance and release of Draft Budget Document City Council Review of 2003-05 Financial Plan & Budget City Council Review of 2003-05 Financial Plan & Budget — Special meeting Adopt Financial Plan & Budget 11/26/02 1/02/03 1/6/03 1/15/03 1/21/03 1/28/03 2/5/03 2/10/03 2/17/03 2/19/03 3/03/03 4/02/03 4/22/03 4/30/03 5/(6/03 5/07/03 6/04/03 6/05/03 6/18/03 Scenario I Scenario I Scenario 3 Scenario 4 Scenario 5 General Fad 2003.04 200445 2003-04 2004.05 2003-04 2004.05 2003.4 200446 2001.04 200405 Couddent hens Anticipated Savtugr Hire lag -Rine (15) 750,000 750,000 750,000 750,000 750,ODD 750,000 750,000 750,000 -0- -0- Him lag- fame (10 in you I and 15 in you 2) 300,000 7!0,000 Hire leg-cmad(10) 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Golden Hand Plan 200,000 4006000 200,000 400,000 200,000 400,000 200,000 400,0()0 200,000 400,000 Revenuer Police Depw meed 175,000 175,000 175,000 175,000 175,000 175,000 175,000 175,000 175,000 175,000 Anuod Shite[ fees Din inuesed foe■ Boothox parking offender PaFting Quibm fee ince, Fluence Departunut 265,000 265,000 265,000 265,000 265,000 265,000 265,000 265,000 265,000 265,000 Reran Check dwage maven mcre we in too face on Utilities Adam fie for buxom licemes laLy rommot fee incto ee, C-Mudv Devdopmenr 390,000 390,000 390,000 390,000 390,000 390,000 390,000 390AN 390AW 390,000 Building Patent fee increase Roofingpian it fen Bnerq Plan Check ADA Plan Check Public Wort 52,000 52,000 52,000 52,000 52,000 52,000 52,000 52,000 52,40 52,000 Spm Event Tmffw canted onvi us Plan chink & p woa®g fan for developmantpicjects Cd Tram mead aguewuent - Hwy 12 Parka & Reareutim Spee $vent fee - Pak Main amace 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 BOBS tdmbonaeend Change in Polley for Cost recovery P & R Sam 30%to 3 70" 70,929 70,929 70.919 70,929 70,929 70,929 70,929 70,929 70,929 Change to Policy for Cost recovety HSS Gam 30% to 40' 145 -NE 145,305 145,300 145-V8 145,300 145,308 145,308 145,308 145,300 145,308 Carry over 700,000 5005.00 700,000 S00,OOO 700AW 500,000 700,000 300,000 700,000 300,000 Value of E step to actnl 200,000 200,000 200,000 200,000 200,000 200,000 200,OOO 200,000 2005.00 20DAW Voluntary Lerve without pay (your one clay) 50,000 -0- 50,000 -0- WIDD - 0- 50,000 - 0- 50,000 - 0 - Sabtdalofwm6skod Ooms 3,533,237 3,483,237 3,533,237 3,483,237 3,533,237 3,483,237 3,533,237 3,483,237 3,283,237 3,483,237 Variable Item Program Reductions Arta Cmamioa Greats -0- -0- 25,080 25,000 25,000 25,000 25,000 25,000 -0- - 0- DLBP 5,000 5,000 10,000 10AM 10,000 10,000 10,000 10,000 -0- - 0- Canvm-&Visitor Borcan 13,000 13,000 26,000 261000 26,000 26,000 26,000 26AN -0- - 0+. ChemberofCommece - 0- -0- 3,000 5,000 5,000 5,000 5,000 5,000 -0- - 0- Kidle Nigh Out - 0- - 0- 10,000 18,000 18,000 18,000 18,000 18,000 -0- - 0- Pamnrship - 0- - 0- ]0,000 10,000 10,000 10,0()0 10,000 10,000 - 0- -$- 0 - Reduce Red u e Pk Hour - Admin 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 -0- - 0.- Redmeinternhoore -PW 22,000 22,000 22,000 22000 22,000 22,000 22,000 22,000 -8- -#- Pacific Muni Consultant - 0- - 0- T1,OD0 72,000 72,000 72,000 72,000 72,000 -9- - 0- ReductimaCouncilAccounts ..0- - 0- -0- -0- - 0- -0- -0- - 0- 7,200 %M Reduce Admin -0- - 0- - 0-- -0- - 0- - 0- -0- -- 0- 1,400 1,4U Reduce Public Warks - a- _ 0- _ 0- -0- - 0- - 0- -0- _ 0- 22,000 22,000 Reduce General Fond Positions ..0- - 0- -0- 000,000 -0- SWODID -0- -0 - - 0- ..0- .0- Reduce Redoce 16 powtims Pay Robes Naw pay rases -0- - 0- (993,234) (501,00) (953,236) (981,833) (953,236) (981,833) (953,236) (981,833) Shue ofinedicd coverage paid by employee -0- - 0- 200,000 200,000 200,000 200,OOD 200,000 2006000 200,000 200,000 Additions to Expenditures Additional 4 faa5gbouts in yea ars (324,435) (324,435) (324,435) (324,435) -0- - 0- -0- - 0- - 0- - 0- Addiho al 4 Grefghtaa - 3 in year one At 1 in yea two ..0- - 0- -0- -0- 0,43,43!1 M44/5) (243,435) (324,435) (243,435) (324,435) Subtotal ofVaeable Itme (283,005) _ (283,035) (888,271) (116,868) (807,271) (116,868) (807,271) (916,868) (966,071) (1,075,668) Grund tAd 3,250,202 3,200,202 2,644,966 3,366,369 2,725,966 3,366,369 $725,%6 2,566,.160 2,317,166 2,407,369 Fund Babace (currently projected 32,642,303) 4,112,619 4,224,806 3,507,M 3,76.1,737 3.i8@,M 3,866,737 3,689,3&1 3,066,737 3,172}&1 2,484737 ended F/Y 2001.02 d 10%twuve Can Librny) 16.67% 16.14% ISSO% 1150% 15.73% 15.74% 15.93% 13.78% 14.71% 32.39% Revenues Tax Revenues Licenses and Permits Fines and Forfeitures ImoltnenUProperty Revenues Intergovernmental Revenues Service Charges Total Revenue Expenditures operating Programs Public Safety Transportation Leisure, Cultural and Social Servioes Community and Eoonomio Development General Government Total Operating Programs Bulk Power Purchase Other Purchases Capita Projects Debt service Tota Expenditures Revens a/Expmdltures (O—Muder) Oder Sources (Uses) Operating Transfers In Operating Transfers Out Other Sources (Uses) Total Other Sources (Uses) Fund Balance Beginning of the Year Mustmad to Fund Balanoe Fund Balance End of the Yew Renaved for Debt Service Designated Reserve Unreserved Total Fund Balance 2001-2002 2002-2003 2003-2004 2003-2004 2003-2004 20042005 Revised Requested Recommended Aurum Budget Budget Difference Budget Budget 19,447,199 20,700,317 21,160,890 0 21,160,890 21,950,230 1,464,450 1,655,554 1,555,905 0 1,555,905 1,586,115 743,058 795,227 811,090 0 811,090 763,945 500,058 811,239 776,260 0 776,260 776,260 4,291,718 3,989,948 1,680,745 2,354,486 4,145,331 4,056,961 1,738,806 1,888,415 1,646,330 168,600 1,814,930 2,352,060 138,294 81,105 114,250 5,000 119,250 121,235 28,323,583 29,921,805 27,745,470 2,528,086 30,383,656 310606 13.132,941 13,571,753 15,081,744 (95,185) 14,986,559 16,541,964 1,817,284 2,322,824 2,117,430 (45,160) 2,072,270 2,158,690 4,082,832 4,060,887 4,520,230 198,025 4,718,255 4,842,885 3,152,561 3,451,362 3,538,765 (249,355) 3,289,410 3,557,270 7,788,217 8,740,705 9,132,852 (127,200) 9,005,652 9,507,149 29,973,835 32,I47,531 34,391,021 (318,875) 34,072,146 36,607,958 0 0 0 0 0 0 0 0 0 0 0 0 0 0 29,973,835 32,147,53! 34U91,021 (318,875) 34,072,146 36,607,958 (1,650.2S2) (2,225,726) (6,645,551) 2,84(4961 (3,688,490) (5,001,152) 4,897,694 6,614,514 6,392,068 0 6,392,068 6,396,803 (4,288,392) (5,534,561) (4,490,867) 0 (4,490,867) (4,490,867) 1,200,000 2,317,166 2,317,166 2,407,569 609,302 2,279,953 4,2189368 0 4,2189368 4,313,506 3,629,228 2,588,278 2,642,505 0 2,642,505 3,172,383 2,588,278 2,642,505 215,322 2,846,961 3,172,383 2,484,737 2,588,278 2,642,505 215,322_ Total: Fund Balance End of the Year 2,588,278 2,642,505 215,322 2,846,961 3,172,383 2,484,737 DIFFERENCE: 0 0 Other sources Program reductions Anticipated savings Revenues 200,000 Carryover 1,000,000 Value of a step vs actual Voluntary Leave w/o pay GF employees pay portion of medical Pay raises G/MO/F/P/FMM/PM Additions to Exp- 3 Fire fighters + one in 2nd year 1,200,000 N 0 0 30,600 30.600 1 1 1. 200,000 200.000 (953,236) (981,833) (243,435) (324,435) 2,317,166 2,407,569 Mayor's & Council Member's Weekly Calendar WEEK OF MAY 6, 2003 Tuesday, May 6, 2003 7:00 a.m. Special Meeting. 1. Review and discuss fiscal years 2003-05 Financial Plan and Budget alternatives (CM) Reminder No Shirtsleeve Session. Wednesday, May 7, 2003 2:00 p.m. Hitchcock. San Joaquin County City Selection Committee Meeting, Board of Supervisors Chambers, Courthouse, 222 East Weber Avenue, 7th Floor, Stockton. 7:00 p.m. City Council Meeting (Note: Closed Session 6:30 p.m.) Thursday, May 8, 2003 Friday, May 9, 2003 Saturday, May 10, 2003 Sunday, May 11, 2003 Monday, May 12, 2003 8:30 a.m. Lodi Police Department swearing-in ceremony for new officer, Juan Fuentes, Carnegie Forum, A small informal reception will follow in Carnegie conference room. Disclaimer: This calendar contains only information that was provided to the ON Clerk's office N:\Administration\CLERK\FORMS\Mcalndr.doc