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Home My WebLink About1998-03-16 CRC MINS ;a MINUTES OF A REGULAR MEETING OF THE CITY OF CHULA VISTA CHARTER REVIEW COMMISSION March 16, 1998 City Attorney's Conference Room 4:30 p.m. ----------------------------------------------------------------- MEMBERS PRESENT: John Dorso, Bob Campbell, Harriet Acton, Barbara McAllister, Deric Prescott, and David Potter (arrived at 4: 36 p.m. ) MEMBERS ABSENT: Jack Blakely STAFF PRESENT: City Attorney John M. Kaheny Bob Powell, Director of Finance Colleen Kelly, Administrative Analyst II The meeting was called to order at 4: 30 p.m. 1. Roll Call. The roll was called and all members were present except Member Blakely. 2 . Approval of Minutes. MSUC (Prescott/Acton) to approve the minutes of February 16, 1998 with the following amendment: Item 31 Page 1, change the third sentence to read as follows: "Member Prescott suggested including a sentence stating that although district elections are not necessary at this time, such an option should be kept open in the future" . 3 . Bob Powell, Director of Finance: Discussion regarding Council Referral regarding Fiscal Year Calendar. Mr. Powell appreciates the opportunity to discuss the issue with the Commission. As he understands it, the Mayor has referred to the Commission the possibility of changing the end of the fiscal year from June 30 to September 30. - The rationale being that it would give the City an additional three months after the state's budget is adopted to adjust Chula Vista's budget. To date, 4 cities (South Lake Tahoe, Inglewood, Long Beach and Huntington Beach) out of 471 cities have changed. Counties are even more dependent on state funds and no county has changed. Chula Vista is dependent on the state's budget in five categories: • Property taxes 13 . 5% • Sales tax 21. 3% • Vehicle Registration 9 . 6% • Gas tax. 3 . 7% f 0 Misc. state grants 3 . 1% Charter Review Commission Minutes March 16, 1998 Page 2 The above represents approximately 50% of Chula Vista's revenues and the only category that routinely changes is Misc. Grants. Bob Powell expressed the following concerns with such a changeover: 1. Significant system modifications required in the initial year. The City is in the midst of replacing its financial system and it would be better to delay any changes until the system is in place. 2 . Cash flow problem during the fiscal year. The City routinely borrows $6-9 million to cover shortfalls through a statewide pool. If we change our fiscal year, borrowing would be done on a stand-alone basis, causing additional effort and possibly increased interest rates and legal fees. 3 . There has been a big debate regarding the recording of property tax revenues with a reporting period of 15 months for the first year. - Member Campbell questioned if Mayor had a specific reason for having the Commission review the issue. Mr. Powell was unable to comment as he was not present at the October meeting when it was referred. To the best of his recollection, Attorney Kaheny stated Council discussed its frustration in waiting for state funding. Additionally, the new City Manager of San Diego discussed implementing it in his former City of Huntington Beach. Member Acton asked Mr. Powell for a ballpark dollar figure of costs to make such a change. The Director of Finance did not have specific figures but foresees outside auditors's costs, interest rates, disclosure issues with bondholders impacting the amount causing a lot of confusion with a benefit that is negligible. Bob Campbell suggested the Chair, in connection with the City Attorney, draft a memo to the Mayor and City Council reflecting the reasons Bob Powell discussed and for the Commission to go no further with this issue. It was recommended staff check with the newly appointed City Manager and subject to his response, Attorney Kaheny will draft a letter for the next meeting. 4 . Continuing Review of Pending Measures. Chair Dorso and the City Attorney met briefly prior to today's meeting to discuss the pending measures and reached the same conclusion. It was decided to send a memo to the City Council indicating the ones certified as ready and seek Council direction. Charter Review Commission Minutes March 16, 1998 Page 3 Council may wish to do a series of amendments or an entire revision. 5. Report of the City Attorney John M. Kaheny. (Given above regarding the measures. ) 6 . Public Comments. None 7 . Members' Comments. Member Acton noted Bob Campbell was around 20 years .ago serving as a Councilmember when the entire revision of the Charter was prepared. 8 . Adjournment. The meeting was adjourned at 4: 55 p.m. to the next meeting scheduled for April 20, 1998 at 4: 30 p.m. Lorraine Kraker, Secretary C:\crc\minute\3-16-98 r