Minutes 2002-05-30 SP
MINUTES
SPECIAL MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
THURSDAY, MAY 30, 2002
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
CALL TO ORDER
The City Council/Redevelopment Agency of the City of Arroyo Grande met in special
session at 6:30 p.m. to consider the Fiscal Year 2002-03 Preliminary Annual Budget,
with Mayor/Chair Michael A. Lady presiding.
ROLL CALL
Mayor/Chair Lady, Mayor Pro TemNice-Chair Runels, Council/Board Member Dickens,
Council/Board Member Ferrara, and CounciVBoard Member Lubin were present. Staff
members present were City Manager Adams, Chief of Police TerBorch, Director of
Administrative Services Wetmore, Director of Building and Fire Fibich, Public Works
Director Spagnolo, Parks, Recreation, and Facilities Director Hernandez, Community
Development Director Strong, Financial Services Director Snodgrass, and Economic
Development Director Sheeley.
FLAG SALUTE
Mayor/Chair Lady led the Pledge of Allegiance.
4. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS
Winton Tullis, on behalf of the Arroyo Grande Firefighters' Association, spoke of the
Department's activities and stated that the City has outgrown what should be expected
of volunteers. He expressed support for the proposed funding for a full-time Engineer.
He thanked the Council for its continued support of the Department.
CONSIDERATION OF FISCAL YEAR 2002-03 PRELIMINARY ANNUAL BUDGET
City Manager Adams presented the proposed FY 2002-03 Preliminary Budget to the.
City Council/RDA Board Members. He explained that the recommended budget
addresses the priorities established by the City Council at the initiation of the budget
process and that all funds are balanced in the recommended budget. Staff
recommended the Council review, discuss, and obtain public input on the budget and
provide direction to staff on any changes to the proposed budget.
City Manager Adams provided an outline of staffs budget presentations which would
include a review of revenue and expenditure projections and recommendations; an
overview of budget highlights focusing on changes from last year's budget; contingency
planning; an overview of the Capital Improvement Program; and presentation of
departmental key goals and accomplishments.
SPECIAL CITY COUNCIUREDEVELOPMENT AGENCY MEETING MINUTES
MAY 30, 2002
PAGE 2
Financial Services Director Snodgrass presented an overview of projected 2002-03
Citywide Revenues and Transfers ($18,944,103); explained how Citywide
appropriations are divided (Salaries & Benefits-46%; Services & Supplies-27%;
Equipment & CIP-12%; and Debt & Transfers-1~%); reviewed General Fund Estimated
Revenues & Transfers ($10,431,160); reviewed General Fund Appropriations
($10,123,540); and reviewed the City's projected Fund Balances for 2002-03, including
General Fund ($2,585,456) and Special Revenue funds (Redevelopment Agency).
City Manager Adams gave an overview of budget goals for 2002-03 which include the
2002 Election; an extension of City Hall; the addition of one Fire Engineer position as
the result of the Fire Department Needs Assessment study; and personnel
compensation adjustments. City Manager Adams responded to questions from the
Council/RDA concerning the proposed funding for the Fire Engineer position, and the
recommendation that the Council approve an acceleration of the implementation plan to
fund the remaining two engineer positions no later than July 1, 2003.
City Manager Adams continued with a review of issues relating to a projected shortfall in
the Sewer Fund and identified recommendations; and reviewed contingency planning
items in preparation for potential outcomes relating to the adoption of the State budget.
Chief T erBorch gave a brief update on the current status of the State budget.
Director of Public Works Spagnolo gave an overview of the City's Five-Year Capital
Improvement Program (CIP). He stated that for FY 2002-03, there were 39 capital
projects budgeted totaling $8,601,865. He gave a brief overview of the major projects
for 2002-03 and projects that may be funded by future grant funding; reviewed 2002-03
CIP Proposed Funding Sources; reviewed 2002-03 CIP Expenditures by Project Type;
and gave an update on the funding strategy for the Branch Mill Road project.
City Manager Adams and Directors of the Financial Services, Administrative Services,
Community Development, Public Works, Parks, Recreation & Facilities, Police, Building
& Fire, and Economic Development Departments presented FY 2001-02 Department
Accomplishments and FY 2002-03 Department Goals.
Mayor/Chair Lady invited comments from those in the audience who wished to be heard
on the matter, and upon hearing none, closed the public comment period and brought
the issue back to Council for questions and discussion.
Council/Board Member discussion and questions of staff ensued regarding the financial
status of the Redevelopment Agency; clarification that the proposed FY 2002-03 budget
does not include funds for anticipated increases as a result of employee group salary
and benefit negotiations; recognition of the State budget crisis; whether staff could
forecast potential reductions in the City's tax base; acknowledgement that the City has
reached its Reserve Fund balance goal; staffing and liability issues related to the Fire
Department; clarification regarding the impact on the budget should the three proposed
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SPECIAL CITY COUNCIUREDEVELOPMENT AGENCY MEETING MINUTES
MAY 30, 2002
PAGE 3
fire engineers be approved; and clarifications regarding service level/budget
amendment requests.
Following questions and comments, Council Member Lubin emphasized the need to
immediately address fire department staffing and stated that he would like to see if there
were ways to fund the three full-time fire engineer positions in Fiscal Year 2002-03 and
what the impact would be on the budget. Council/Board Members Dickens and Ferrara
supported the FY 2002-03 Preliminary Budget as presented. Mayor Pro TemNice
Chair Runels supported the Preliminary Budget with the inclusion of funding required to
accelerate the addition and hiring of three full-time fire engineers in FY 2002-03.
Mayor/Chair Lady supported the Preliminary Budget; however, he proposed
accelerating the schedule of approving full-time fire engineers by including funding in
the FY 02-03 budget for two positions effective immediately and funding the third
position at mid-year for six months. Council/Board Member Ferrara asked questions
about the funding options and asked for clarification from City Manager Adams and
Chief Fibich about timeframes required for recruiting as it related to timeframes for filling
the positions. He proposed as an option that two engineers be funded effective January
2003 and putting off the third position until July 2003. Following discussion, staff was
directed to develop funding options for the addition of a second Fire Engineer position in
the FY 2002-03 budget.
6. ADJOURNMENT
Mayor/Chair Lady adjourned the Special Meeting at 9:20 p.m. to the next Regular
Meeting on Tuesday, June 11, 2002 at 7:00 p.m.
M'ch..' A~?;Y~'
ATTEST:
!JL~ti(J]M-
Kelly W tmor , Director of Administrative Services!
Deputy City lerk/Agency Secretary
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