HomeMy WebLinkAboutMinutes - June 10, 2015 SMLODI CITY COUNCIL
SPECIAL CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, JUNE 10, 2015
A. Call to Order / Roll Call
The Special City Council meeting of June 10, 2015, was called to order by Mayor Johnson at
7:00 p.m.
Present: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Chandler,
and Mayor Johnson
Absent: Council Member Kuehne
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
B. Reaular Calendar
B-1 Adopt Resolution Approving the City of Lodi Financial Plan and Budget for the Fiscal Year
Beginning July 1, 2015 and Ending June 30, 2016 and Approving the Fiscal Year 2015/16
Appropriation Spending Limit (CM)
Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the Fiscal Year
2015/16 budget. Specific topics of discussion included General Fund departments, General Fund
balances, departmental funding, Police Department, Fire Department, Public Works Department,
Administration Department, Internal Services Department, Non -Departmental budget, Capital
Outlay, all funds, labor, positions, California Public Employees Retirement System (Cal -PERS)
projections, and major capital projects.
In response to Mayor Pro Tempore Chandler, Mr. Ayers stated that the Cal -PERS obligation for
the current year is built into the budget, but the future years' expectations do not have a
designated reserve because it is reviewed on a year -by -year basis. City Manager Schwabauer
explained that staff has reviewed the budget going forward over the next five years, including the
projected Cal -PERS obligation, and staff believes the City will have adequate revenue to pay for
its other obligations.
Council Member Mounce stated that new legislation requires the City to report Other Post
Employment Benefits (OPEB) and unfunded liabilities, and she requested Mr. Ayers explain the
new rule. Mr. Ayers stated that previously these unfunded liabilities were demonstrated as a
footnote in the Comprehensive Annual Financial Report (CAFR); however, GASB 74 and 75 will
require that the liability is shown on the balance sheet, which will make it appear there is a
significant deficit due to the pension obligation in the $90 million range and $17 million for OPEB.
In further response, Mr. Ayers stated the calculations are based on actuarial assumptions and
experience.
In response to Council Member Nakanishi, Mr. Ayers stated that the balance sheet shows the net
debts and assets, and this new required reporting will be on the face of the balance sheet, which
will show equities in a deficit position.
Mayor Johnson questioned if the City has information on upcoming City-wide retirements for
succession planning purposes, to which Mr. Ayers stated that staff knows and can plan from the
perspective of how many years of service and ages of employees, but there are still unexpected
retirements. Mr. Schwabauer added that there were a number of retirements pending in the
Police Department; however, it appears that many of them will stay longer than originally
anticipated.
In response to Mayor Johnson, Interim Police Chief Tod Patterson stated that the delay in
purchasing body cameras is due to creating a policy so there is full employee understanding of
the expectations and to see what legislation will ultimately require. Police Captain David Griffin
added that the primary issue involves the videos and when officers are permitted to watch: before
or after writing a report. Pending litigation may dictate that officers cannot view the video until
after the report is prepared. Additionally, staff is researching what the departmental costs will be
for reviewing videos and making copies for court and trying to ascertain if a part-time or full-time
staff person will be necessary.
In response to Council Member Mounce, Mr. Ayers confirmed that funding in the amount of
$20,000 for the spay and neuter program is in the Police Department budget, which is the same
amount as the previous year.
In response to Mayor Johnson, Fire Chief Larry Rooney stated that the department recently hired
six firefighters, but two did not pass the probationary period. There are four positions participating
in the Stockton academy, which would bring the department up to full compliment.
In response to Council Member Mounce regarding community events, Mr. Ayers stated this fund
primarily covers support for the Grape Festival for Police overtime costs with a reimbursement of
$25,000 from the Festival to the City to offset costs, as well as the Fireworks Task Force, which is
fully reimbursed. In further response, Mr. Ayers stated that it has been approximately three years
since the reimbursement amount with the Grape Festival has been renegotiated.
Council Member Mounce stated that $21,000 is still listed for enterprise zone administration, but
the program has been dissolved and this money should be allocated elsewhere. Business
Development Manager Adam Brucker stated that he believed it was associated with the wind -
down of the enterprise zone and the City's contribution to Worknet, but he would get a definitive
answer prior to budget adoption.
Council Member Mounce questioned why there were contradicting figures for the non -
departmental account between the draft budget document ($9 million) and the presentation
($7 million), to which Mr. Ayers explained that capital projects need to be added to the figure and
the debt service needs to be offset.
In response to Council Member Nakanishi, Mr. Ayers stated that the City opts to show utility costs
for City facilities in the non -departmental fund versus breaking down costs by building size and
department, but organizations handle this in a variety of ways.
In response to Mayor Pro Tempore Chandler, Mr. Ayers stated that if the wayfinding signage
program moved forward, Council would designate the funding source for the program. Staff
initially intended the funding to come from the Street Fund.
In response to Council Member Nakanishi, Mr. Schwabauer stated that the $3.6 million under
non -departmental for Parks, Recreation, and Cultural Services (PRCS) is reflected in the PRCS
budget as a credit.
In response to Council Member Mounce, Mr. Ayers explained that the transfers in and out of each
of the funds are detailed on page 379 of the budget under the supplemental section.
In response to Council Member Mounce, Public Works Director Wally Sandelin stated that the
animal shelter improvements included refurbishing the interior wall spaces in the main shelter to
replace damage from rodent infestation.
In response to Mayor Johnson, Mr. Ayers stated that the financial, human resources, and payroll
systems in the Tyler Program are up and running. The next phase will include animal licenses
and business licenses, which will go live in August or September, followed by the utility billing
implementation, which will likely be online in early December. The fleet management system,
scheduled to go live in early January, will be the last component, after which staff will fine tune
the system to best meet the City's needs. With regard to information technology replacements,
the funding is geared toward replacing major infrastructure pieces, and he added that the new
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Information Technology Manager will be reviewing what is in place and when each piece will
need to be replaced.
Council Member Mounce questioned if staff has had an opportunity to utilize the League of
California Cities financial program, to which Mr. Ayers responded that he has reviewed the basics
of the program and entered historical information, but he has not yet entered the projections. The
program builds off of the City's published CAFR, but because it delves deeper into the financials,
it requires a significant amount of time to accomplish.
Mayor Johnson questioned if Cal -PERS has adjusted its methodology in order to react faster to
market changes and be in a more offensive position. Mr. Ayers stated that Cal -PERS has an
investment model and asset allocation model; it has toned down its aggressiveness of the asset
allocation; and it has had decent returns; however, it has also stabilized the fund by passing on
larger payments to its constituents.
In response to Council Member Nakanishi, Mr. Schwabauer stated that both Parks and
Recreation and the Library are special revenue funds to instill fiscal discipline to ensure their
revenues grow as their expenses grow. Prior to the non -departmental account, these funds were
included in the general fund and, once pulled out of the general fund, there needed to be a place
to put the general fund contribution into those programs. The non -departmental fund is a vehicle
to show where the general fund contribution will be put to transfer those dollars.
Council Member Mounce stated there was merit for merging Parks and Recreation with the
Community Center and that Parks, Recreation, and Cultural Services Director Jeff Hood changed
these departments dramatically. She added that she would like to see the funding moved to the
department and not run through non -departmental, even with the general fund contribution.
Mr. Schwabauer stated that perhaps another fund can be created to demonstrate the
contribution, and Mr. Ayers added that it could be called operating transfers to other departments,
but it would in essence serve the same purpose.
Alex Aliferas stated there will be a pension reform initiative next year and encouraged Council to
visit www.reformcalifornia.org to learn more. In response to Council Member Mounce, Mr. Aliferas
stated that the initiative has been drafted and should be in circulation this year in time for the
2016 ballot. Mayor Johnson stated this initiative has a tough battle ahead because of the number
of signatures needed to qualify, the issues surrounding one of the authors of the legislation, and
other hot -topic issues on the 2016 ballot.
C. Adjournment
There being no further business to come before the City Council, the meeting was adjourned at
7:58 p.m.
ATTEST:
Jennifer M. Ferraiolo
City Clerk