Minutes 2011-03-24 SP MINUTES
SPECIAL MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY
THURSDAY, MARCH 24, 2011
CITY OF ARROYO GRANDE AND WOMAN'S CLUB COMMUNITY CENTER
211 VERNON STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor /Chair Ferrara called the Special City Council /Redevelopment Agency meeting to order at
6:04 p.m.
2. ROLL CALL
City Council /RDA: Council /Board Member Joe Costello, Council /Board Member Jim Guthrie,
Council /Board Member Tim Brown, Mayor Pro Tem/Vice Chair Caren
Ray, and Mayor /Chair Tony Ferrara were present.
City Staff Present: City Manager /Executive Director Steven Adams, Director of Legislative
and Information Services /City Clerk Kelly Wetmore, Director of
Administrative Services Angela Kraetsch, Community Development
Director Teresa McClish, Police Chief Steven Annibali and Director of
Recreation and Maintenance Services.
3. FLAG SALUTE
Mayor /Chair Ferrara led the Flag Salute.
4. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS
None.
5. CONSIDERATION OF FY 2011 -12 AND FY 2012 -13 BUDGET STRATEGIES
City Manager /Executive Director Adams provided information on the budget goals and
strategies workshops that would be conducted for preparation of the FY 2011 -12/FY 2012 -12
Biennial Budget; provided overviews of General Fund Revenue History; 10 -year staffing history;
accomplishments and record of success; reorganization outcomes; trends the City has
experienced with General Fund expenditures; 10 -year PERS rate history; and medical rates.
Administrative Services Director Kraetsch provided preliminary financial projections which
included revenue and expenditure estimates for FY 2011 -12 & FY 2012 -13.
City Manager Adams provided a breakdown of the projected shortfall which is comprised of a
structural deficit ($200,000); PERS rate increase ($300,000); salary increases ($250,000), and
liability costs ($50,000). He explained PERS rates as it relates to employee and employer share
of costs, and associated increases anticipated in FY 2011 -12 & FY 2012 -13. He then reviewed
other major cost issues relating to the City's liability program, retiree medical, and
redevelopment, as well as the status of the redevelopment, water, sewer, local sales tax, and
facility funds. He concluded by reviewing proposed strategies and options for Council
consideration.
Chief Annibali provided an overview of the School Resource Officer Program.
Minutes: Special City Council /Redevelopment Agency Meeting Page 2
Thursday, March 24, 2011
Director of Recreation and Maintenance Services Perrin provided an overview of the Recreation
Programs, including sports, facilities and classes, as well as childcare, pre - school, and special
events.
Staff responded to questions regarding the PERS rates and retiree medical costs, sports
facilities and classes, the City's liability program through the California Joint Powers Insurance
Authority (CJPIA) and if this is still a financially sound option /program for the City,
redevelopment obligations, school district security on campuses, sports programs, whether any
information was available on the City of Paso Robles' restructuring efforts in recreation, and the
school resource officer program.
Mayor /Chair Ferrara opened the public comment period and the following member of the public
spoke: Otis Page, Myrtle Street.
Hearing no further public comments, Mayor /Chair Ferrara closed the public comment period.
City Manager /Executive Director Adams recommended the following primary strategies for
moving forward to address the projected budget shortfall in the FY 2011 -12 and FY 2012 -13
Biennial Budget, which include: 1) pursuing labor concessions to address increases in salary
and benefit costs, and 2) utilizing reserves in excess of the minimum 15% reserve policy.
Council /Board comments ensued on all strategies presented and a majority of the Council
supported moving forward with the primary strategies to address the projected budget shortfall.
Council Member Brown commented that he did not support the use of reserves to balance the
budget, only for emergencies. Mayor Pro Tem Ray requested that staff follow up with the City
of Paso Robles to obtain information regarding the restructuring of its recreation programs so
that the information could be reviewed at the next Budget Workshop.
There was no formal action taken at the Budget Workshop.
6. ADJOURNMENT
Mayor /Chair Ferrara adjourned the Special Meeting at 8:50 p.m. to the next Regular City
Council /Redevelopment Agency Meeting on Tuesday, April 12, 2011 at 7:00 p.m.
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Caren Ray, M -• Pro TemNice Chair
ATTEST: / 2/2 /,'• o ,
Kell We or City Clerk/A enc Secretary
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(Approved at CC Mtg ¥ —/ 0 1 j 1