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HomeMy WebLinkAboutcc min 1985/03/14 MINUTES OF AN ADJOURNED REGULAR MZEi'iNG OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Thursday, March 14, 1985 Council Conference NDom 4:15 p.m. City Hall Councilmembers present: Mayor Cox, Councilmembers Malcolm, McCandliss, Moore (Councilman Scott arrived late) Councilmembers abeent: None Staff present: City Manager Goss, City Attorney Harron, Assistant City Manager Asmus Mayor COx commented this meeting was for the Council's overview of General Revenue Sharing to determine COuncil's position regarding the proposed funding for l~venue Sharing. City M~nager Goes explained this meeting was to discuss Council 's position prior to its participation to the National League of Cities (NLC) meetings in Washington later this month on the Federal Administration's proposals to cut several programs of financial assistance to local government, including Revenue Sharing. He discussed the material given to Council regarding (1) the impact on proposed budget cuts on various Federal programs and the tax simplification proposals outlining a number of those programs and (2) a memo on General Revenue Sharing which included the rationale for Revenue Sharing since it was started in 1972. City Manager Goes gave staff's position on the following pregrams: Small Business Administration (SBA) Program - assistance is being cut back and normally Chula Vista would oppose those cuts. He suggested referring this to the Chamber of COmmerce for their response and feedback on what their position is on this item. Economic Development Administration (EDA) Program - Mr. Goss stated it would not be good to cut this program but that it would not impact the City significantly. City Manager Goss reconm~nded supporting the cut, if needed. Private Activity BOnds - pertinent to the City would be Industrial Development BOnds (IDB's) which should De limited in tax cuts of 1984 but not eliminated totally. Urban Development Action (UDAG) Program - staff supports a cut if needed. Community Development Block Grant ( CDBG ) Funds for Economic Development - Administration does not recommend a total elimination but only 24% cut in the entitlement. Staff recommends reduction of some amount, if needed, regarding the deficit portion, but not necessarily as deep as 24%. Council Conference - 2 - March 14, 1985 HODASs (Section 17 Housing Development Grants) - The City is not eligible but staff's recommendation is to support this reduction. HUD Rental Rehab Program funding for 2 years - This is a new program and staff recommends suplDorting a two-year funding moratorium. Two-Year moratorium on HUD new construction programs (Public Housing, Elderly Section 202/8, Section 235 end new Section 8 Certificates - Staff recommendation is to support a two-year moratorium on HUD l~rogram. Section 8 Program Changes - Staff rec(mmended opposing Section 8 changes. Section 108 Loan Program to be terminated - Staff recommends opposing Section 108 termination. General Revenue Sharing - City Manager Goss referred to the report submitted by Finance Director ChristoFher noting the rationale for Revenue Sharing as it was conceived in 1972 which does not now apply to this program. He noted, however, there was substantial reliance on revenue sharing by cities, counties and social service agencies. As far as the City is concerned it has some substantial reserves, with annual funding at the ~1.2 million level. The City is using 100% (of Revenue Sharing) for police services with reserves being used for Capital Improvement Program (CIP) projects. The County recommended support of continuing general revenue sharing beyend its phase out in September 1986. The Administration is recommending its cutoff in September 1985. The staff's recommendation is to support a ~hase out schedule over a four-year period as it would have less of an impact on City operations. This is a general position recommendation for Council when they go to Washington to lobby along with other cities directly with the Administration on Revenue Sharing. The Administration may be suggesting a September 1985 cut-off date but be willing to fall back to the current September 1986 Revenue Sharing termination date. Mayor Cox noted the Senate Finance Committee recommended that it be terminated by September 30. City Manager Goss' re~endation on four years could be an extreme position. The City of Chula Vista is in good financial shape and has the equivalent of one year's revenue sharing in reserve which has been slowly applied to CIP projects and which can be used to soften the blow. Treasury Tax Proposals and Real Estate Mr. Goss stated the Treasury Department has made certain tax proposals. These proposals have much brcader implications than direct grant programs applied to other local government. Council Conference 3 March 14, 1985 City Manager Goss offered no recammendation on proposed repeal of the 10% investment tax credit and the accelerated cost recovery system. It was recommended that the City Council oppose the rehabilitation tax credit l~rogram as well as the five-year amortization housing rehabilitation expenditures which could hurt housing rehabilitation programs. Cotmcilman Moore stated he thought it was time for the cities to take a different type of position. ~1.2 million dollars is available but should be used in the right direction in areas where something needs to be done. He felt Chula Vista should support the cities that have infrastructure problems and request Administration funding for infrastructure capital improvements. He suggested an Administrative l~hase out over a 3-4 year peaTied. Councilman Scott arrived at this time (4:30 p.m. ) Councilwoman McCandliss expressed concern with only one more year for the program to continue and if there is no continuation for Revenue Sharing there is not enough time to develop the detailed system of the program. This places a greater burden on Administration as there are counties that are in need of these programs. Councilman Scott stated the National League of Cities is an extremely strong lobbyist group. Chula Vista is fiscally responsible and it would be equitable for the City to lobby for one more year (September 30, 1986). City Manager Goss stated the staff recommendation is to phase (the Revenue Sharing program) out over a 4-year peried in response to Administration's eliminatiea (of Revenue Shering) in September 1985. Mayor Cox stated the Federal Government has made a commitment that Revenue Sharing would continue up until September 30, 1986. He stated he would rather some of the programs be cat out which have not benefited Chula Vista. The Country and the City will be better served if the Federal deficits are brought under control with a reduction program directed toward the deficit. Councilman Malcolm commented he could support some type of reduction next year and even this coming fiscal year without 100% for one more year after this and stated he would like to see the City do their part in cutting the Federal deficit in this fiscal year. City Manager Goss recommended the l~nase out schedule over a four-year period and cutting one-quarter a year. MSC (Moore/Scott) that Chula Vista is willing to take a reduction in certain areas (Federal Revenue Sharing is one of them) and the City would like to insure its representatives in Washington are insisting upen a reduction on other subsidies. The motion carried with Mayor Cox absent at this time. Ill Council Conference 4 March 14, 1985 MS (Moore/~-Candliss) if Chula Vista receives General Revenue Sharing end General Block Grant funds, they be budgeted so that they are to be used in capital improvement programs only in Fiscal Year 1985-86. City Manager Goes explained there are certain programs that have restrictions in using Block Grant funds. Councilman MDore stated he would amend the motie~ to state Block Grant funds that don't have any specific restrictions. MOTION RESTATED MSC (Moore/McCandliss) to direct the staff that General Revenue Sharing and Block Grant funds that do not have specific restrictions be used for capital improvements as an alternative program for 1985-86. The motion passed with Mayor Cox absent at this time. ~C (Malcolm/Scott) for Closed Session to discuss pending litigation regarding the Sierra Club. The motion carried with Mayor Cox absent at this time. The Council recessed to Closed Session at 5 p.m. The Deputy City Clerk was excused. The City Manager reported the Session ended at 5:35 p.m. AE~OUR!~eNT AT 5:35 p.m. to the meeting of March 19, 1985 at 7 p.m. and to the meeting Of March 21, 1985 at 4 p.m. Jennie M. Fulasz, CFE City Clerk Patricia A. Guardacosta Deputy City Clerk ~: 0562C