Adjourned Reg Meeting 03/12/13APPROVED BY THE CITY COUNCIL ON MARCH 26, 2013
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
STUDY SESSION March 12, 2013
The City Council of the City of Orange, California, convened a Study Session at 5:30 p.m. on
March 12, 2013 in the Weimer Room, 300 E. Chapman Avenue, Orange, California.
5:30 P.M. STUDY SESSION
1. OPENING
1.2 ROLL CALL
PRESENT — Alvarez, Smith, Murphy, Bilodeau
ABSENT - Whitaker
1.3 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS
2. PUBLIC COMMENTS - None
3. CONSENT CALENDAR - None
4. REPORTS FROM MAYOR SMITH - None
5. REPORTS FROM COUNCILMEMBERS - None
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None
7. ADMINISTRATIVE REPORTS - None
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CITY COUNCIL MINUTES — STUDY SESSION March 12, 2013
8. REPORTS FROM CITY MANAGER
8.1 Report on the Proposed FY 2013 -14 Budget.
Rick Otto, Assistant City Manager, reviewed a power point presentation, outlining the status of
the current budget and projections for the FY 13 -14 Budget.
For the current fiscal year budget, revenues are estimated to be $92.7 million. This is a 4.6%
increase over projections. Mostly, the additional revenue is due to one -time funds returned to the
Redevelopment Agency. Expenditures are estimated at $90.9 million.
For the FY 13 -14 Budget, revenues are anticipated to be $91.8 million, a 1.4% decrease from the
current year. This number reflects a 5% growth in sales tax revenue. Expenditures are estimated
to be $93.9 million which represents a 5.1% increase in spending. Departmental budgets are
being held at current funding. 45 positions remain frozen. Expenditures exceed revenues by $2.1
million.
Departmental work plan highlights were reviewed and include, strengthening our fiscal position,
improving Public Infrastructure through Capital Projects, increasing the use of technology,
continuing enhancements for public safety, implementation of the ideas from the organizational
assessment, and retaining and attracting businesses in Orange.
Councilmember Bilodeau asked about the Cities unfunded pension liability. Councilmember
Bilodeau asked if the City could issue pension obligation bonds to cover the debt. Finance
Director Rich Jacobs explained that taxable bonds would be required which very much limit the
savings the City would see.
Mayor Smith asked how the County of Orange executes their pension obligation bonds. City
Manager John Sibley indicated a report would be prepared explaining the City's options.
Councilmember Bilodeau asked about AQMD funds and where the money comes into the budget
and how it is spent. Mr. Sibley responded that staff will prepare a report on how these funds
come in and go out.
Mayor pro tem Murphy asked what the budget differential was last year. Staff indicated the
figure was approximately five million.
Mayor Smith asked about CRV funds. Mr. Sibley responded that staff will prepare a report on
how these funds come in and go out.
Mayor Smith thanked and congratulated staff for their hard work during the last five years of
difficult and strained budgets.
ACTION: Received and filed.
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CITY COUNCIL MINUTES — STUDY SESSION March 12, 2013
9. LEGAL AFFAIRS - None
10. ADJOURNMENT
The City Council adjourned at 6:20 p.m. to its Regular Meeting of Tuesday, March 12, 2013 at
7:00 p.m. in the Council Chambers.
Declaration of Chief Clerk, Robert Zornado, declaring posting of the City Council Agenda of a
Study Session on March 12, 2013 at Orange Civic Center kiosk, Police Facility at 1107 North
Batavia, and Orange Public Library at 407 N. Chapman; all of said locations being in the City
of Orange and freely accessible to members of the public at least 72 hours before
commencement of said Study Session.
R ER ZORNADO
HIEF CLERK
TERESA E. SMITH
MAYOR
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