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HomeMy WebLinkAboutcc min 1978/06/23 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Friday - 4:00 p.m. June 23, 1978 An adjourned regular meeting of the City Council of the City of Chula Vista, California, was held on the above date beginning at 4:00 p.m. in the Council Conference Room, City Hall, 276 Fourth Avenue. ROLL CALL Councilmen present: Mayor Hyde, Councilmen Cox, Egdahl, Gillow, Scott Councilmen absent: None Staff present: City Manager Cole, City Attorney Lindberg, Department Heads PROPOSITION 13 IMPACT - City Manager Cole remarked that this meeting was continued FISCAL YEAR 1978/79 BUDGET from June 22, 1978. The Council wanted to go back and discuss some of the approved departmental budget cuts, and a determination must be made on revenue sharing and the utility users tax. STATE GUIDELINES City Manager Cole said his staff called the State Office to inquire as to the exact amount of surplus the City would get. They stated that the $4 billion surplus will be used for actual grants or revenue sharing to all local agencies of which the cities will receive $250 million. This $280 million will be divided as to the net loss of each city's property taxes compared to the total loss of all cities. The conditions are: (1) Cities must use up 1/3 of its unobligated reserve which exceeds 5% of budget. (2) Cities may not allow any wage increases for the first year which exceed increases which will be given to State employees (currently frozen). (3) Surplus money must first be given to Fire and Police. The City Council is required to provide the same level of service as in 1977/78; however, this provision does not deny the right to pursue economies if the level of service remains the same. The League estimates that the cities will receive 55% to 60% of property tax revenue that they would have received next year if Proposition 13 had not passed. Mr. Cole explained that Chula Vista would have received $4 million in property taxes and 60% of that is $2.4 million. Conm~ents by the Mr. Grant estimated that the City will receive between one- Director of Finance half to three-quarters of a million dollars. This means that Chula Vista cannot carry more than $994,850 in the general fund reserve and $243,108 as cash basis. Council discussion Discussion centered around the amounts in the general fund and cash basis; the commitment to spend revenue sharing in two years; level of services for Fire and Police; and the items which must be put back in the budget to meet the 1977/78 level of services. Adjourned Regular Meeting -2- June 23, 1978 Suggestion for procedure Councilman Gillow suggested that the Council first determine the alternate sources (assuming it does not have the State money) and see whether the $1.5 million can be reduced. After this, it will listen to the arguments regarding the utility tax, using revenue sharing, etc., and then make the determination of what should be done about the State surplus money. At this point, the Council may decide to take the money and put it into capital improvements or something other than that. Motion for procedure It was moved by Councilman Gillow, seconded by Councilman Egdahl and unanimously carried that the Council approach it that way. Sources of revenue City Manager Cole discussed the three sources of revenues: property tax, sales and utility tax. The property tax revenue has now been taken away from the cities; the City's sales tax is falling behind in the County; this leaves the utility tax which can be raised prior to July 1, 1978. Motion to restore status It was moved by Mayor Hyde and seconded by Councilman on utility tax Scott that the utility users' tax be restored to the status of two years ago which was 5% tax on the gross utility's bill. Amendment to motion It was moved by Councilman Scott that the Council allow it (utility users' tax) up to 6% and that not more than 5% be levied without a vote of the people~ No second to motion The motion died for lack of second. Council discussion A discussion followed in which the City Attorney gave his interpretation on the ordinance allowing the utility users' tax; comments regarding going back to therms and kilowatts; Proposition 13 mandates; the three months time it will take SDG&E to change its billing system; and a time factor when the increased tax should take place. Amend to motion It was moved by Mayor Hyde, seconded by Councilman Scott for time factor and unanimously carried that the effective date of the amendment to the ordinance ~increase utility usersftax to 5%) be July 1, 1979. Motion carried The motion, as amended, carried by the following vote, to-wit: AYES: Mayor Hyde, Councilmen Scott, Cox, Gillow Noes: Councilman Egdahl Absent: None REVENUE SHARING Mayor Hyde con~ented that there is $800,000 in uncommitted revenue sharing funds. Motion for recommendation It was moved by Mayor Hyde and seconded by Ceuncilman Cox on revenue shaming that the City Manager be instructed that one-half of the revenue sharing funds, at this time be not committed (that it form a revenue sharing reserve), and for the balance that has not yet been committed in the budget deliberations~ to bring back recommendations for either capital improvement projects and/or operational budget supplement in that amount. Adjourned Regular Meeting -3- June 23, 1978 General discussion Discussion-ensued in which the Council suggested the monies may be used for increased staffing; restoring some of the cuts made in the budget; restoring some of the capital im- provement projects; instead of actual figures, deal with the philosophy of revenue sharing monies; bringing up the level of services in fire and police; looking at the long- range picture realizing that the picture in the next few years will not be so "palatable." Motion modified Mayor Hyde modified his motion to state that "up to 50% will be available to the City Manager for recommendations for increases in the operating budget and/or capital im- provement program - to be brought back for Council approval. Motion carried The motion as modified carried by the following vote, to-wit: AYES: Mayor Hyde, Councilmen Cox, Egdahl, Gillow Noes: Councilman Scott Absent: None REVENUE PICTURE City Manager Cole discussed with the Council approximate balances which will be proposed in the general fund, revenue sharing, by increasing revenues, capital improve- ment projects and monies returned from the deletions made in the capital improvement projects. (Councilman Scott left the meeting at this time - 5:54 p.m.) Motion to restore It was moved by Mayor Hyde, seconded by Councilman Egdahl Maintenance Gardener that the City Manager be directed to put into the budget the Maintenance Gardener in the Parks & Recreation budget that had been deleted. Mayor Hyde commented that this gives the City Manager the capability of restoring the 24 CETA positions if he so chooses. Motion carried The motion carried by the following vote, to-wit: AYES: Mayor Hyde, Councilmen Egdahl, Gillow, Cox Noes: None Absent: Councilman Scott Motion to restore It was moved by Mayor Hyde and seconded by Councilman Egdahl Construction Repair that the Construction Repair Specialist I be restored in Specialist I the Building and Housing Department budget. Motion carried The motion carried by the following vote, to-wit: AYES: Mayor Hyde, Councilmen Egdahl, Gillow, Cox Noes: None Absent: Councilman Scott Motion to accept It was moved by Councilman Egdahl, seconded by Councilman State funds Cox and unanimously carried by those present that the Council accept the State revenue funds to be shared and the mandate that goes with it (as it is presently under- stood). Adjourned Regular Meeting -4- June 23, 1978 Motion to restore It was moved by Councilman Gillow and seconded by Mayor drainage funds Hyde that the sum of $60,000 be restored to take care of storm drains and sewerage. Discussion of motion Councilman Cox indicated he was against the motion because the Council asked the City Manager to come back with recom- mendations which he feels is in~ortant to restore in the budget. Motion revised Councilman Gillow revised his motion to state that the item be placed on the "want" list. The motion, as revised, carried unanimously by those present. Motion to restore It was moved by Councilman Gillow, seconded by Councilman Engineer Aide Egdahl and unanimously carried by those present that the Engineering Aide (Account 1422) be put back in the budget: this is on the "want" list as a priority item. REQUEST TO PUT STORAGE City Manager Cole said he received a request from the Boys BUILDING AT GREG ROGERS PARK Club to for permission to move a 8' x 10' storage building onto Greg Rogers Park site where they will eventually build their new facility in order to get some of their recreation programs started. Motion to approve It was moved by Mayor Hyde, seconded by Councilman Gillow and unanimously carried by those present that the request be approved. ADJOURNMENT Mayor Hyde adjourned the meeting at 6:07 p.m. to the meeting scheduled for Tuesday, June 27, 1978 at 7:00 p.m. in the Cormcil Chambers, City Hall.