Minutes 1994-06-02
298
MINUTES
BUDGET STUDY SESSION OF THE CITY COUNCIL
THURSDAY, JUNE 2, 1994
CITY COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
The City Council of the City of Arroyo Grande met for a
1994-1995 Proposed Budget Study Session at 5:00 P.M., with Mayor
Matthew Peter Gallagher, III, presiding.
1. FLAG SALUTE
Mayor Gallagher led the Pledge of Allegiance to our Flag.
2. ROLL CALL
Present, in addition to Mayor Gallagher, were Council
Members Drew Brandy, Bernard Burke, Michael Lady and James Souza.
Staff Members present were City Manager Chris Christiansen, City
Clerk Nancy Davis, Finance Director David Bacon, Parks and
Recreation Director John Keisler, Planning Director Doreen '-
Liberto-Blanck, Director of Building and Fire Kurt Latipow and
Chief of Police Rick TerBorch.
3. ORAL COMMUNICATIONS
None.
4. INTRODUCTION
Mr. Christiansen introduced the 1994-1995 proposed budget.
He said it was basically a maintenance budget similar to last
year. He made the following recommendations:
1. That the Council consider the new budget as if there were no
Police or Fire consolidations.
2. In the Building Department, change the contract employee
building inspector to a full-time employee, thus saving
$4,300.00.
3 . In the Police Department, remove the Chief's secretary from
the Police Union and make that position a Confidential Employee,
costing the City an additional $4,800.00.
4. In the Police Department, change the part-time Records Clerk
to full-time and discontinue the part-time position, costing the
City an additional $5,800.00.
5. That the Council consider there may be a savings or rate
decrease in the health program.
Mr. Christiansen referred to the May 19, 1994, Memorandum of
the Budget Committee, on which he served with Mayor Gallagher,
Council Member Souza and Finance Director Bacon. Mr.
Christiansen said the Committee reported an estimated General
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JUNE 2, 1994
Fund balance as of June 30, 1995, of $300,000.00. He said the
State may take actions in early 1995 to reduce its budget deficit
and those actions may affect the city financially. He said the
Committee had made the following recommendations:
1. Adopt the Budget after public hearings and Council review.
2. Review the Budget in early 1995 (or earlier) assuming the
State has taken action(s).
3. If the State leaves local jurisdictions whole, consider the
following regarding the Fund Balances:
(a) $6,000.00 for economic development. Use the above as
seed money to gain a $30,000.00 grant from the State. Money to
,~. be used for an economic study.
(b) Fire Rescue unit - $100,000.00. Rescue Unit is in poor
condition. Must address the problem.
(c) Reduce Utility Users Tax.
(d) Personnel training - $1,000.00. Should invest in
employee development. A number of jurisdictions are joining
together for training purposes, thus lowering the cost.
(e) street Work. Because of the lack of money, major street
work, repaving and reconstruction has ceased. Must address the
problem.
(f) Other priorities as directed by City Council.
5. REVIEW OF REVENUES
Referring to the Budget Committee report, Mr. Christiansen
said the City's revenue picture is flat except for the utility
Users Tax, without which massive reductions would have been in
order. He said the General Fund included no street projects,
typical police vehicle and equipment replacement, no fire
apparatus, reduced street sweeping and no community organization
funding. He said overall, per Council policy, the direction is
public safety as the number one priority. He said the Water and
Sewer Funds are in excellent financial positions, and the city
hopes to do some projects in these areas. He said Parks and
Recreation continues on a path similar to past years, being
underwritten to a lesser degree each year.
Mr. Bacon and Mr. Christiansen gave an overall picture of
the Revenue and Expenditure Detail in the proposed budget.
Council Members asked questions and made comments.
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6. EXPENDITURES
Mr. Christiansen said the proposed City Council budget was
the same as in the 1991/1992 budget year.
In the discussion of Central Services, it was suggested that
the Account No. 203 Travel and Training amount be reduced.
However, Council decided that the new Employee Suggestion Awards
Program budgeted amount of $1,000.00 be included in that Travel
and Training Account and that it should remain at $3,000.00.
No changes were made in the proposed Finance Department
budget.
Mayor Gallagher said the City Clerk's Account No. 203 Travel
and Training amount should be expanded to include Equal
Employment Opportunity training issues.
Mr. Christiansen said the proposed amount budgeted for the
city Attorney should be $161,200.00.
In the discussion of the Police Department proposed budget,
Chief TerBorch said the Actual amount spent in 1993/1994 should
be $277,000.00.
THE CITY COUNCIL RECESSED AT 6:30 P.M. FOR FIVE MINUTES
Detailed discussion of the Police budget continued, with no
changes to the amounts recommended.
7. ORAL COMMUNICATIONS
Mayor Gallagher said the Mayors' Select Committee had met
and decided that the cities in San Luis Obispo County should have
equal representation to the County on the Air Pollution Control
Board. He said a Council Member would be appointed to be on the
board. He asked staff to put the matter on the next regular
Council meeting agenda.
8. ADJOURNMENT
On the unanimously approved motion of Burke/Brandy, the
Council adjourned at 7:15 P.M. to the next Budget Study Session
at 5:00 P.M. Monday, June 6, 1994.
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ATTEST: ~a. ~
NANCY A. AVIS, CITY CLERK
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