HomeMy WebLinkAbout01/09/1979M I N U T E S
ADJOURNED MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
COUNCIL HEARING ROOM, CITY HALL, 990 PALM STREET
TUESDAY, JANUARY -9, 1979 - 7:30 P.M.
SAN LUIS OBISPO, CALIFORNIA
STUDY SESSION
Roll Call
Councilmen
PRESENT: Ron Dunin, Jeff Jorgensee, Steve Petterson, Allen Settle and
Mayor Kenneth E. Schwartz
ABSENT: None
City Staff
PRESENT: Leland Walton; City.Administrative Officer; J.H. Fitzpatrick,
City Clerk; George Thacher, City'Attorney; Henry Engen, Community
Development Director; Wayne Peterson, City Engineer; Rudy Muravez,
Director of Finance; Richard Minor, Fire Chief; Roger Neuman,
Police Chief; Dave Romero, Director of Public Services.
----------------------------------------------------=---------------- - - - - --
1. Individual members of standing council subcommittees reported on
activities of each committee.
A.
Area Council of Governments
Councilman Settle
B.
C.C.C.J.C.
Councilman Petterson
C.
City /County /Cal Poly Advisory Committee
Councilman Jorgensen
D.
County Water Advisory Committee
Mayor Schwartz
E.
Whale Rock Commission_
Mayor.Schwartz
F.
Zone 9 Advisory Committee
Councilman Dunin
2. City Council then- discussed ,with staff'the status of the 1978 -1979
City Budget, C.I.P. and Street Deficiency Projects...
R. Muravez, Director of Finance, presented a report on current revenues and
C.I.P. Projects with exhibits as follows:
A. Summary of Available Funds (Est. as of 12/31/78)
B. Adjustments to Budgeted Revenues (Est. as of 12/31/78)
C. Status Summary of C.I.P. (Est. as of 12/31/78)
Summary of Available Funds
The summary presents the estimated fund balances for-the major operating and
capital funds of the City, after adjustment. The adjustments include increases
and decreases in estimated revenue, unanticipated revenues and estimates of
capital project savings or cost overruns. Also included on the summary, for
information purposes, are the restricted reserves being accumulated by the
City.
Adjustments to Budgeted Revenue
An extensive analysis was made of the major revenue sources for the City and
the estimates were revised accordingly.
City Council Minutes
January 9, 1979
Page 2
1. Sales and Use Tax. Based on receipts thru December 31, 1978, there
appears to be a downward trend in-the seasonally adjusted revenue.
The original-projections for 78/79 were made as of April 30, 1978,
and reconfirmed thru June 30, 1978. At that time, a significant
economic downturn was not on the annual horizon. Current economic
forcasts however, do indicate
quarter-of-this fiscal year.
it may have a greater impact o
Since this is the City's major
be watching it closely for the
he has adjusted his estimated
a significant downturn in the last
Depending on how early this occurs,
n the budget than currently estimated.
revenue source, Rudy Muravez will be
remainder of the year. For the present,
revenue downward by $100,000.
2. Bed Tax. This source of income is greater than anticipated mainly
due to a successful tourist season and the opening of the Discovery
Inn. This combination should produce an additional $25,000 in revenue.
3. Utility Tax. This source of revenue resists a high degree of accuracy
in its forcasting. It is subject to the variables of rate adjustment
and utility consumption. At the present time he is forcasting a
decrease in anticipated revenue of approximately $32,000..
4. Investment..Earnings. The City is now earning 10k to 11 percent on
current investments. Overall this revenue source will safely produce
an additional $126,000 to be distributed among the City's operating
and capital funds. An additional $25,000 will be distributed among
the City's trust and agency funds.
5. Motor.Vehicle in Lieu Tax. THe seasonally adjusted trend for this
source projects an additional $18,000 in revenue:
Therefore, he felt that at this time the increases and decreases of general
fund revenue appeal to be closely equalizing out.
' Capital Improvement.Budget - Status Summary
He'stated this exhibit lists.all..capital improvement projects by catagory and
then by CIP number. Included on the summary are the original budget amount,
all adjustments to the original amount, the current charges against the budget
in encumbrances and the balance of the budget remaining. After discuss-
ing each project with the appropriate personnel, an estimated commitment for
the year was determined and a savings or overcost figure projected.
Overall, the City has committed 30% of the appropriated funds for this fiscal
year. A substantial number of projects are in process with contract award
expected prior to the end of the year. At.the present time, there does not.
appear to be substantial savings in the public facilities and equipment cata-
gory or the water and sewer-utilities. However, the street projects do exhibit
approximately $90,000 for reallocation.
ADJUSTMENTS TO BUDGETED REVENUE
1978 -1979
Original
Revised
Budget
Percent
Revenue Source
Budget
Estimate
Adjustment
Adjustment
General Fund
Sales & Use Tax
2,550,000
2,450,000
- 100,000
- 3.9%
Bed Tax
395,000
420,000
+ 25,000
+ 6.3%
Business License Tax
1
203,000
210,000
+ 7,000
+ 3.4%
Utility Tax
856,800
824,500
- 32,300
3.8%
Investment Earnings
131,000
200,000
+ 69,000
+ 52.6%
DMV In -Lieu Tax
457,000
457,000
+ 182000
+ 3.9%
- 13,300
Street Funds
Gas Tax 2107 (Interest Earnings)
149000
25,000
+ 119000
+ 78.6%
SB -325 (Interest Earnings)
20,000
27,500
+ 7,500
+ 37.5%
+ 18,500
City Council Minutes
January 9, 1979
Page 3
Utilities
Water (Interest Earnings)
25,000
30,000
+.
5,000
+ 20.0%
Sewer (Interest Earnings)
25,000
40,000
±
15,000
+ 60.0%
& Recommendations
+
20,000
Capital Improvements
Fin.
Account.Clerk I
$11,000
$1,650
Effective_
Revenue Sharing (Interest.Earnings)
24,300
45,000
+
20,700
+ 85.2%
Capital Improvements Fund
(Interest) 5,900
15,000
+
9,100
+154.2%
-
Defer to
CETA
+
29,800
'
Wayne Peterson, City Engineer, then reviewed with the City Council the status
of the street deficiency priority list, approved by the City Council on
May 1, 1978 for the 1978/1979 fiscal year. He went through each project
.showing those completed, out to bid, contracted for, and those under design.
He also reviewed with the Council those street priority items on which nothing
has been submitted and the reasons why.
Leland Walton, City Administrative.Officer, submitted for the:Council's consid-
eration a. request for additional full time City personnel. He requested the
Council approve authorization for eight (8) new positions at a cost of approx-
imately $54,850, including salary, fringes and start up equipment, with
starting dates as shown.
Total Recommended
$134,000 $2,850
$52,000
L. Walton continued that according to the finance.officer, the City can expect
sufficient unappropriated funds in the current.operating budget (accumulated
from.salary savings and other economies) to underwrite these positions ($54,850)
during the remainder of the current fiscal Year without drawing from the
general fund reserve. The fiscal impact on our 1979 -80 fiscal year budget
would include an increase of approximately 1.3% ($134,000) in the overating
budget and a corresponding 3.7% decrease in the capital budget (based on 1978 -
79 level of expenditures).
He continued the City -was fortunate.that.subsequent to-his original proposal
for additional personnel in parks and sewer.maintenance,.CETA funds have been
granted for this purpose. Thus, for a- period of at least one year three of
the requested positions will be financed.with these federal funds. However,
he assured the Council that he.would not use temporary CETA positions as
leverage to establish new permanent positions until and unless they can be
completely justified on their own.merits. This is to say that except for the
three maintenance positions, he considered these CETA jobs to be of a temporary
and training nature.
On the other side of the equation, the City was informed by the county that our
two existing CETA firemen are no longer eligible for federal funding because
their salary exceeds the new maximum. This means that.the City must pick up
the cost for these two positions from general funds. There is still some
possibility of a reprieve on this decision but Mr. Walton stated that he is
allowing for this modification in his recommendation.
1
Annual Cost
Start Up
Department
Position
W /Benefits
Equipment
Comments
& Recommendations
Fin.
Account.Clerk I
$11,000
$1,650
Effective_
Feb. 15
($4,500)
P.S.
Park Maint. Wk.
14,000
.(6,500)
Defer to
Ceta
P.S.
Park Maint. Wk.
14,000
-
Defer to
CETA
P.S.
Util. "Mant. Wk.
15000_
-
Defer to
CETA
P.S.
Util. Eng. Asst.
19,000
(100)
Defer to
budget
1979 -80
P.S.
Clerk Typist
12,000
-
Effective
Jan 15
($6,000)
CAO
Budget Analyst
18,000
100
Effective
Mar. 1
($6,000)
C.D.
Eng. Tech.
15,000
100
Effective
Feb. 1
($6,500)
C.D.
Eng. Tech.
15,000
100
Effective.
May 1
($2,000)
C.D.
Eng. Assoc.
21,000
500
Effective
Apr. 1
($5,000)
Fire
Firefighter
21,000
200
Effective
Feb. 1
($11,000)
Fire
Firefighter
21,000
200
Effective
Feb. 1 ($11,000)
Total
Requested
$196,000
$9,450
Total Recommended
$134,000 $2,850
$52,000
L. Walton continued that according to the finance.officer, the City can expect
sufficient unappropriated funds in the current.operating budget (accumulated
from.salary savings and other economies) to underwrite these positions ($54,850)
during the remainder of the current fiscal Year without drawing from the
general fund reserve. The fiscal impact on our 1979 -80 fiscal year budget
would include an increase of approximately 1.3% ($134,000) in the overating
budget and a corresponding 3.7% decrease in the capital budget (based on 1978 -
79 level of expenditures).
He continued the City -was fortunate.that.subsequent to-his original proposal
for additional personnel in parks and sewer.maintenance,.CETA funds have been
granted for this purpose. Thus, for a- period of at least one year three of
the requested positions will be financed.with these federal funds. However,
he assured the Council that he.would not use temporary CETA positions as
leverage to establish new permanent positions until and unless they can be
completely justified on their own.merits. This is to say that except for the
three maintenance positions, he considered these CETA jobs to be of a temporary
and training nature.
On the other side of the equation, the City was informed by the county that our
two existing CETA firemen are no longer eligible for federal funding because
their salary exceeds the new maximum. This means that.the City must pick up
the cost for these two positions from general funds. There is still some
possibility of a reprieve on this decision but Mr. Walton stated that he is
allowing for this modification in his recommendation.
1
City Council Minutes
January 9, 1979
Page 4
Finally, L. Walton stated that he.and.the staff are still looking into the
Council's suggestion that-the City retain.a licensed architect and a licensed
landscape architect.to.help the staff with small projects and for.consultation
purposes.
9:10 p.m., Mayor Schwartz declared a recess.
9:30 p.m., Council.reconvened, all Councilmen present.
The City Council.then reviewed the - information presented by the staff on status
of the City's revenues, C.I.P. and street deficiency project list.
By common consent of the City Council, the City Administrative Officer was
authorized to continue to try and..retain.by..contract a licensed architect and a
licensed landscape architect to help staff; and C.A.O..was further authorized
to retain a licensed engineer to help with city design projects and for plan
checks on project developments.
Mayor Schwartz.stated:.that as.he.- understood .- the.staff's.report,.the_City
Council had unappropriated unrestricted.funds.in the general fund of $521,821
(including $250,000 general..reserve) in restricted funds $89,066 (facilities
reserve) and $151,036 in C.I.P..fund.
Gordon Johnson, Personnel Director,.upon..question by the City Council, stated
that as.of July 1, 1978, 12 additional full time positions had been added
to the staff.
Councilman Jorgensen stated that-the C.A.O. proposal for eight new positions
would.mean.that the.City Council.had approved 20 new full time positions in
one year,.not.including part time..help.and CETA employees, in spite of the
mandate of proposition 13 and the.fact that,the City employees did.not..receive
their negotiated salary increases due to the conditions of the state bail out
money:
Leland
Walton, C.A.O.; was asked
to prioritize-.the eight additional positions
he was
requesting.
1.'-
Firefighter
5.-
Engineering.Technician
2..-
Firefighter
6
- .Budget Analyst (C.A.O.)
3
- Account Clerk.(fin.) ..
...7
- Engineering Technician
4
- Clerk Typist (P.S.)
8
- Engineering Associate
Councilman Petterson stated he_supported. the request of the C.A.O. to add eight
full time positions,-he also_felt.that_the.Council should support the C.A.O.
in his attempt to carry out Council direction to operate the City efficiently
Councilman.Dunin, stated that-he would- support the recommendation for additional
personnel in the- utility:.division_as_he felt, after investigation, that they
are-overloaded-with'-work, they are.way understaffed, and he did not feel.that
needed work was getting done. He,also felt the additional personnel were needed
for safety considerations. He would also support, with lesser priority, 1)
Account Clerk, 2) Budget Analyst, 3) Park Maintenance Worker, and 4) Firefighter.
He-questioned-the need for..the.additional.personnel in the engineering.division,
as he did not.feel more help.would solve.the problem, as he did not feel that
the 1975 reorganization including the engineering for the city has worked, and
just adding more people will not help.
' Councilman.Settle..stated that..he...would.reluctantly. support the C.A.O. recommen-
dation..for more.help because -under normal.-consideration he was - opposed to
adding personnel..during the.budget .year. He would support the hiring of 1)
Firefighters, 2).Account Clerk, 3).Park.Worker, 4) Utility Worker, and 5)
Engineering Technician,--.but-he would.rather..defer 1) Utility Engineering Assis-
tant, 2) Budget Analyst, and 3) Engineering Associate.
Councilman Jorgensen stated that.he...was.opposed in.principle.to adding personnel
in mid year, but he would reluctantly support the.priorities outlined by
Councilman Settle.
City; Council. Minutes
January 9, 1979
Page 5
Mayor Schwartz.felt_that' -lie would support :all. :the.recommendations of the C.A.O.
and would authorize- filling . - all.- .positions.as..scheduled by:Mr..Walton. He
felt that this-proposal-was timely and needed.
On. motion of- Councilman Petterson.. seconded.- by._Councilman Dunin, that City
Council support the recommendations...of the.C.A.0. and authorize recruiting
for eight (8) full-time positions under the time schedule proposed.
Councilman- .Jorgensen.stated that while -he supported the C.A.O.,.he would vote
against the motion-,: -due -to: inclusion- of 1) Budget. Analyst, and 2) .Engineering
Associate.
Councilman,Settle stated that he too would support the C.A.O. but he would
vote:no on the motion:as:he did'hot.:feel'.a. need for 1) Budget Analyst, 2)
Engineering Associate, and,3) Utility Engineering Assistant.
Councilman Dunin stated that in order to...get-a Utility Worker in the field,
he would-reluctantly vote for.the.motion, but he questioned the..benefit to
the City of,the additional engineering:personnel. I. . .
Motion carried on:the following roll.:call vote:
AYES: Councilmen Petterson, Dunin and Mayor Schwartz
NOES:' Councilmen Jorgensen and Settle
ABSENT: None
Councilman. Jorgensen ::suggested.: that-. any. and all unallocated funds and unallo-
cated increases in revenue should'-be assigned to solving.pirking problems.
Mayor Schwartz felt that the.city staff should.be-asked to allocate any
surplus, unallocated funds and unanticipated revenues to.the already approved
council C.I.P. priority list; which were not funded due.- to.Proposition No. 13.
He .reminded -the City Council.that dde to.the provisions of the 1978 bail-
out funds.as.allocated by the state legislature, the city lost over $46,000
due to large revenue accounts.
10:25 p.m., City Council adjourned to:.Executive Session
11:10 p.m., City Council reconvened in Regular Session, all councilmen present.
11:10 p.m:.;:Mayor:Schwartz.adjourned the meeting -to 12:10 p.m., Monday,
January 15, 1979.
APPROVED: February 6, 1979
•'Fitzpatrick, City Clerk.
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