HomeMy WebLinkAboutMinutes - April 6, 2010 SMLODI CITY COUNCIL
SPECIAL CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, APRIL 6, 2010
A. Roll call
The Special City Council meeting of April 6, 2010, was called to order by Mayor Katzakian at
7:04 a.m.
Present: Council Member Hansen, Council Member Johnson, Council Member Mounce, Mayor
Pro Tempore Hitchcock, and Mayor Katzakian
Absent: None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
B. Reaular Calendar
B-1 Receive Presentation Regarding Preliminary Fiscal Year 2010/11 General Fund Budget
Status (CM)
City Manager King provided a PowerPoint presentation regarding the preliminary fiscal year
2010/11 general fund budget status. Specific topics of discussion included an overview, flat base
general fund revenue, revenues from the 2009-2011 years, one-time revenue of Lodi Energy
Center, new revenue and other revenue increases, revenue decreases, hidden expenses in
property tax administration fee and Educational Revenue Augmentation Fund shift, uncontrollable
expenditure increases of Public Employees Retirement System (PERS) and medical insurance,
overall expenditures from 2009-2011, general fund budget strategy, existing employee
contributions, proposed expenditures, summary data, receipt and use of one-time revenue from
Lodi Energy Center, deferred maintenance, emergency replacements, roofs, heating, ventilation,
and air conditioning systems, parks, information technology equipment, and vehicle replacement.
In response to Mayor Pro Tempore Hitchcock, Mr. King stated the property tax collection fee is
going up despite the property values declining because the number of people assigned to the
property tax collection function has gone up and cities within the County are looking into it.
Mr. King stated he was not sure about the percentage or exact amount being collected and will
forward that information.
In response to Mayor Pro Tempore Hitchcock, Mr. King stated the City of Lodi is already at the
2% at 55 standard that other communities that are at a higher percentage are looking to go back
to. He stated he does not believe it is good timing to review retirement options in light of
the current contributions that the employees are already making with furloughs and other
deductions.
In response to Council Member Hansen, Mr. King stated he has not yet seen any information on
how the new health care plan will affect cities and counties.
In response to Mayor Katzakian, Mr. King provided an overview of the PERS medical contribution
system and discussed the employer and employee contributions, how increases are handled, the
market aspect, and the 15 -year deferral payment tie in to the current structure.
In response to Council Member Mounce, Mr. King stated the elimination of the non -reimbursed
training and travel is spread across the departments fairly evenly. Further, Mr. King stated staff is
attempting to manage the overtime aspect by reducing the amount of overtime generally and
through the browning out of an engine. He stated in some cases overtime may be converted into
Continued April 6, 2010
comp time, although they want to be aware of not letting too much time build for liability purposes.
Mr. King stated upon reviewing the numbers staff may be recommending some cash out.
Discussion ensued between Mayor Pro Tempore Hitchcock and Mr. King regarding the PERS
formulas, three highest year average versus single highest year, the City of Stockton's formula in
comparison to others in the County including Lodi, and the bigger hit to the bottom line when
employees accrue and carry a larger balance on the books and cash out the same prior to
leaving.
In response to Council Member Johnson, Mr. King stated the California Energy Commission has
set a date for approval of the new Lodi Energy Center, there is a marginal chance that it may not
go through, and all indications are that payment in the form of the one-time sales tax revenue will
be forth coming sometime in the next fiscal year. Further, Mr. King stated one reason for the
staggered payments is that the form of progress payments on an item is consistent with a longer
lead time from Siemens.
In response to Council Member Johnson, Mr. Sandelin stated the charts reflect a breakdown of
various areas in a particular facility because the roofing material and patchwork of one area in a
facility may be different than another.
In response to Mayor Pro Tempore Hitchcock, Mr. King stated computers have a life expectancy
of four to five years and when they are not replaced in that time frame, all the replacements tend
to build upon one another requiring a larger replacement at one time. Further, Mr. King stated any
spending plan for the one-time revenue would be contingent upon receipt of the payment from
the Lodi Energy Center sale.
In response to Council Member Hansen, Mr. King confirmed that there is no effort to build up
reserves while employees are contributing through furloughs and providing concessions.
In response to Mayor Pro Tempore Hitchcock, Mr. King stated the maintenance and operators
group took fewer furloughs, consented to two layoffs, and those individuals were hired back in
other positions.
In response to Council Member Johnson, Mr. King stated staff is only informally inquiring about
who may be interested in the early retirement option if offered again.
A brief discussion ensued amongst Council regarding the need to have equitable concessions
from all the bargaining groups to ensure fairness.
The City Council provided general consensus to pursue the preliminary Fiscal Year 2010/2011
General Fund budget plan as recommended in the presentation.
C. Adjournment
There being no further business to come before the City Council, the meeting was adjourned at
8:15 a.m.
ATTEST:
Randi Johl
City Clerk
N