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Home My WebLink Aboutcc min 1978/06/08 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Thursday - 4:00 p.m. June 8, 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 Chambers, City Hall, 276 Fourth Avenue. ROLL CALL Councilmen Councilmen Hobel, Cox, Scott, Egdahl present: Mayor Hyde, Councilmen absent: None Staff present: City Manager Cole, City Attorney Lindberg, Assistant City Manager Asmus, Director of Finance Grant WELCOME TO COUNCILMAN- Mayor Hyde welcomed Com~cilman-elect George Gillow to ELECT GEORGE B. GILLOW the meeting. PROPOSITION 13 City Manager Cole submitted the agenda for this meeting BUDGET IMPLICATIONS stating its purpose was to inform the Council of the budget implications, revenue sources, alternative revenues, and ask for Council input or guidelines to preparing a budget for adoption by June 30, 1978. Presentation by Assistant City Manager Asmus submitted material detailing Assistant City Manager the facts on budget reserve, departmental budget reductions totaling $2,486,908 and $1,667,685, and a summary of pos- sible program reductions which would be required to reduce the operating expenditures by approximately 2.4 million. Mr. Asmus emphasized that figures quoted in the material and on the charts as they relate to personnel and department reductions, as well as the reserve and other figures, are not to be taken as factual figures - these will be changed when the actual figures are received from Sacramento - when the City will be informed of the actual amount of loss under Proposition 13. Budget Reserve Status Assistant City Manager Asmus quoted the figures of $1,358,000 in the General Fund; $529,000 in Revenue Sharing and $243,000 cash~asis as monies available before Proposition 13. The sum total is $2,130,000 (not taking into account any salary adjustments) and with the possible loss of $2,400,000 from Proposition 13, the City would realize a shortage of $270,000. Department reductions Discussion followed regarding the departmental reductions on a 10% - 20% and 30% reduction. Mr. Asmus noted that if the percentages were adhered to, the City would realize approximately 2-1/2 million dollars with a loss of 88 employees. Under the reductions of $1,600,000, 51 employees would be lost. In answer to Council's query, Mr. Asmus said there were 490 regular employees in the City and 116 CETA employees. He added that it would be difficult to live with the cuts proposed for both the fire and police departments since these are the essential safety services. Adjourned Regular Meeting -2- June 8, 1978 Levels of service Councilman Egdahl indicated that he would like to receive more information on the specific levels of services which will be reduced in the various departments, especially that of the fire and police. Councilman Hobel asked what the percentage of service level cut is being proposed from that of the preliminary budget. Mr. Asmus commented that it was about 20% to 25% , however, these figures could change as some of the department heads are asking to take a second look at their reduction figures. CIP PROGRAM Nine projects were listed by the Manager's office as possible "holds": (1) shop addition - $9,000; (2) public works materials slab - $31,000; (3) Third Avenue widening "G" - "I" - $284,000; (4) 3rd Avenue improvement "E" to "F" - $201,000; (5) "J" and Oaklawn Signal - $50,000; (6) Alien/ Bonita Signal - $45,000. Mr. Asmus also noted that "hold" list included the Garden Park development project funded for the last three years ($29,000, $47,000 and $65,000) for a total sum of $761,000. Budget approach In reviewing the proposed fee increases, Mr. Asmus com- mented that the Birector of Parks & Recreation has in- dicated that any recreation program which the public still wants should remain only if it is self-sustaining. Planning and Engineering are proposing raising fees so that a person benefitting from the service will be required to pay the entire cost. Utility Tax A memo from the Director of Finance was submitted to the Council in which he noted the Ordinance #1754 placed a utility tax limit on gas and electricity of $80,000 - the sum paid by Rohr Industries last year. Based on the actual consumption used by Rohr last year, they would have had to pay an additional $35,426 to the City. City Manager Cole recommended that the limitation on gas and electricity be eliminated. With the Proposition 13, no increases in taxes can be made as of July 1, 1978; however, the Council has up until then to consider an increase in this utility tax. Council discussion The Council voiced their concerns about increasing any taxes at this time; questioned the legality of increasing taxes; adopting an ordinance prior to June 30 to increase the utility tax but holding the actual date of effectiveness until months later; voluntary referendum to give the people a right to vote on whether or not they want their taxes increased; how the people in Chula Vista voted on Proposition 13 and Proposition 8; and business license fee increases. Revenue sharing Councilman Scott said he did not want to spend any revenue sharing money at all on operating expenses; felt it was premature at this time to make any decisions on the budget until such time as notification of the actual funds are received from the Legislature. He questioned the future of the bus system suggesting that perhap~ this question also should be submitted to the electorate to see whether or not they still want this service continued. Cash basis Discussion followed in which the staff and Council considered a feasible amount to leave in the cash basis fund; a policy on revenue sharing monies; anticipated date when (Sacramento) legislators will make decisions concerning the allocations of funds. Adjourned Regular Meeting -3- June 8, 1978 Councilman Egdahl commented that before taking action, the City must know where the money is coming from: State surplus or reserves; have to make some long-range decisions because "somewhere along the line, the well is going to dry up"; there will be more money in the 1978/79 year budget than in subsequent years. Personnel Mayor Hyde said he was concerned as to what is going to happen to personnel. He added that he felt no one should be laid off until after the City receives its "financial picture." City Manager Cole cautioned the Council on withholding decisions - as the longer they wait, the more the City has to go into its reserves plus the requirement of having to pay higher and higher percentages of unemployment insurance. Present budget As to the present budget, Mr. Cole recommended the Council adopt it as submitted with any modifications made at the budget hearing; but allocate expenditures quarterly - not going beyond that amount. Also, a freeze be put on hiring any new personnel or filling vacancies. Capital Improvement In answer to Councilman Cox's query, Mr. Cole stated that Projects the total CIP budget is over the three million dollars. Some of the money is already obligated in projects ready to go (joint ventures with the Connty). Staff to get figures Councilman Egdahl asked the staff to provide the dollar figures on (III-A): (1) quarterly allotments; (2) personnel hiring freeze; (3) deferring capital outlay purchase; (4) deferring capital improvement projects. He further asked that the staff note which ClPpfojectsshouldbedeferred. Mayor Hyde commented that the list include priorities. Council- man Scott added that as soon as the list is obtained, the Council can hold a mini-budget session. Next meeting Mayor Hyde indicated that at the next meeting, the Council should vote on what they feel the combined cash basis and general fund amount should be for end of FY 1978/79. Right now, it shows $1,358,000 and $243,000 which, he felt, could be reduced. Revenue Sharing Assistant City Manager Asmus asked for comments regarding revenue sharing funds. Councilman Scott said he felt it was too early to talk about these funds. Mayor Hyde in- dicated the Council may be willing to commit on "x" number of dollars of revenue sharing for operational expenses, especially if cut~s meant losing personnel. Councilman Hobel's Councilman Hobel noted that this was the last meeting in comments which he can participate as a Councilman. His comments regarding Proposition 13 budget implications were: (1) he would redefine his policy regarding revenue sharing monies - and would actually change his position regarding the percentages. (2) pull down the general fund reserve. (3) do everything in his power to minimize personnel reductions, especially in police, fire and public works. The number one priority in a regional survey was the safety factor - although the people voted for Proposition 13, they are maintaining that safety services not be reduced, Adjourned Regular Meeting -4- June 8, 1978 Councilman Cox felt it was incumbent upon the staff to come back to the Council with a proposal. Assistant City Manager Asmus noted that what the City uses in Revenue Sharing would depend on the severity of the financial picture. ADJOURNMENT Mayor Hyde adjourned the meeting at 5:38 p.m. to the meeting scheduled for Tuesday, June 13, 1978 at 7:00 p.m. in the Council Chambers. cITY CLERK