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Minutes 2007-05-29 SPMINUTES SPECIAL MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, MAY 29, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER The City Council/Redevelopment Agency of the City of Arroyo Grande met in special session at 6:00 p.m. to consider the Fiscal Year 2007-08 and 2008-09 Preliminary Bi-Annual Budget, with Mayor/Chair Tony Ferrara presiding. 2. ROLL CALL Mayor/Chair Ferrara, Mayor Pro Tem/Vice-Chair Arnold, Council/Board Member Costello, Council/Board Member Guthrie, and Council/Board Member Fellows were present. Staff members present were City Manager Adams, Chief of Police Aeilts, Director of Administrative Services/City Clerk Wetmore, Director of Building and Fire Hubert, Public Works Director Spagnolo, Parks, Recreation, and Facilities Perrin, Community Development Director Strong, and Financial Services Director Kraetsch. 3. FLAG SALUTE Mayor/Chair Ferrara led the Pledge of Allegiance. 4. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS None. 5. CONSIDERATION OF FISCAL YEAR 2007-08/2008-09 PRELIMINARY ANNUAL BUDGET City Manager Adams presented the proposed FY 2007-08 and FY 2008-09 Preliminary Bi- Annual Budget to the City Council/RDA Board Members. Staff recommended the Council review, discuss, and obtain public input on the preliminary budget and provide direction to staff on any changes. City Manager Adams provided an outline of staffs budget presentations, which would include a summary of revenue and expenditure projections; an overview of fiscal policies; an overview of budget strategies and recommendations; an overview of the long-range financial plan; an overview of departmental key goals and accomplishments; and an overview of the Capital Improvement Program. Financial Services Director Kraetsch presented a summary of revenue and expenditure projections; reviewed General Fund Revenues & Appropriations; reviewed the financial status of the Redevelopment Agency; and reviewed Water and Sewer Fund projected revenues. City Manager Adams gave an overview of the City's existing fiscal policies and recommended fiscal policy changes to reduce the reserve policy and to pre-fund retiree medical costs; and provided budget highlights, including an overview of proposed transportation, infrastructure, public safety, and public facilities/ADA improvement projects to be funded with the local sales tax revenue, and recommended several proposed personnel changes. Financial Services Director Kraetsch gave an update of the City's Long Range Financial Plan, including an overview of issues to monitor such as potential reductions in sales tax, reductions in building permit fee revenue, the rising cost of personnel and benefit costs due to the rising cost of housing; and sewer fund capital project needs. SPECIAL CITY COUNCIL/REDEVELOPMENT AGENCY MEETING MINUTES MAY 29, 2007 PAGE 2 City Manager Adams provided an overview of the proposed Work Program for the next two fiscal years. Mayor/Chair Ferrara opened the public comment period and the following members of the public commented on the proposed budget: Tvson Kurt, Dixson Street, opposed the funding for lighting of Don Roberts Field. Mike Palayo, representing Arroyo Grande Valley Little League and the Central Coast Youth Sports Association, supported the proposed funding for lighting of Don Roberts Field. Jim Varoo, representing AYSO, supported the proposed funding for lighting of Don Roberts Field. Hearing no further public comments, Mayor/Chair Ferrara closed the public comment period City Manager Adams then presented the accomplishments for Administration and the City Attorney for FY 2005-06/2006-07 and goals for FY 2007-08/2008-09. Directors of the Administrative Services, Financial Services, Community Development, Police, Building & Fire, Parks, Recreation & Facilities, and Public Works highlighted FY 2005-06/2006-07 Department Accomplishments and FY 2007-08 and FY 2008-09 Department Goals. Director of Public Works Spagnolo gave an overview of the City's FY 2007-2012 Capital Improvement Program (CIP). He stated that for FY 2007-08 and 2008-09, there are 73 capital projects budgeted totaling $12,779,285. He gave a brief overview of FY 2007-08 CIP Proposed Funding Sources, FY 2007-08 CIP Expenditures by Project Type; an overview of the funding plan for street improvement projects and major projects for FY 2007-08/2008-09. Mayor/Chair Ferrara called for a break at 8:10 p.m. The Council/Board reconvened at 8:23 p.m Council/Board Member comments and questions of staff ensued regarding the budget revenue estimates; operational costs; tracking the local sales tax revenues separately; adjusting the City's General Fund reserve policy to provide for maintaining a minimum of 15% with a goal of 20%; support for modifying the fiscal policy concerning pre-funding of retiree medical costs; concern that the capital project estimates are too low; support for establishing a vehicle replacement fund and reviewing the policy to establish and refine the criteria for vehicle replacements; that the City needs to consider and evaluate the potential for purchasing alternative fuel vehicles; support for the proposed improvement and lighting projects at Soto Sports Complex; acknowledgement that park development impact fees are declining due to buildout and that the City will need to look at ways to fund park improvements in the future as the City will not be able to subsidize the regional facility on an ongoing basis; whether there were any plans to use solar power at the City's well sites to address rising electric power costs; whether the City was a member of the South County Historical Society and a suggestion to provide a donation to defray their costs; a suggestion to increase the hours or add an additional employee in the Neighborhood Services Division; a suggestion to move the Tally Ho sidewalk project up in the capital improvement program schedule; a suggestion to follow up to see if all the Strawberry Festival vendors are paying sales tax as required; whether underground improvements are being coordinated prior to planned street overlay projects; a suggestion to consider photovoltaic systems at existing City facilities; concern about the project costs for the Lopez Water Treatment Plant and a request for more expense detail; concern about rising costs for animal control services and a request to seek clarification from the County to ensure costs are applicable for the services rendered within the City limits; a request to increase the travel expense account due to the Council's involvement with the League of California Cities and associated policy committee meetings; a suggestion for providing in-house training opportunities SPECIAL CITY COUNCILIREDEVELOPMENT AGENCY MEETING MINUTES MAY 29, 2007 PAGE 3 for disaster planning and implementation of the Emergency Plan/EOC; a suggestion to staff to review the Children In Motion programs as it relates to offering packaged costs; support for the concept of creating an Agricultural Advisory Committee; afollow-up request for developing a Water Element for the General Plan; a request to review and monitor City-wide telephone costs; a suggestion to install locks on manhole covers to discourage debris and materials from entering the sewer system; and acknowledgement that the costs for the SLO Visitors and Conference Bureau are based on a cost benefit formula by jurisdiction and is linked to Transient Occupancy Tax Revenue. There was no formal action taken on the Preliminary Bi-Annual Budget. City Manager Adams reported the Final Budget would be presented to the City Council on June 12"' for formal adoption. 6. ADJOURNMENT Mayor/Chair Ferrara adjourned the Special Meeting at 9:49 p.m. to the next Regular City Council/Redevelopment Agency Meeting on Tuesday, June 12, 2007 at 7:00 p.m. Tony Ferr~~llayor/Chair ATTEST: 0 Kelly Wetmore, ty Clerk/Agency Secretary Approved at CC Mtg (o-~b-2oo7)