HomeMy WebLinkAbout4_20_2004 - Council Minutes - Adjourned Regular MeetingAPPROVED BY THE CITY COUNCIL ON APRIL 27,2004
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF AN ADJOURNED REGULAR MEETING April 20, 2004
The City Council of the City of Orange, California convened an Adjourned Regular Meeting on
April 20, 2004 at 5:00 p.m. in the Weimer Room, 300 E. Chapman Avenue, Orange, California.
5:00 P.M. STUDY SESSION
1. OPENING
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Murphy
1.3 ROLL CALL
PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche ABSENT -
None 1.4
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS - None.2. PUBLIC COMMENTS -
None.3. CONSENT CALENDAR All
items on the
Consent Calendar are considered routine and are enacted by one motion approving the recommended action
listed on the Agenda. Any member of the City Council, staff or the
public may request an item be removed from the Consent Calendar for discussion or separate
action. Unless otherwise specified in the request to remove an item from the Consent
Calendar, all items removed shall be considered immediately following action on the
remaining items on the Consent Calendar.3.1 Declaration of
City Clerk, Mary E. Murphy, declaring posting of the City Council Agenda of an Adjourned
Regular Meeting of April 20, 2004 at Orange Civic Center in the north facing
kiosk, Police Facility at 1107 North Batavia, and Shaffer Park;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 Adjourned Regular Meeting; and also available
at the City Clerk's Office and Main Library at 101 N.Center Street.ACTION: Accepted
Declaration of
Agenda Posting and authorized its retention as a public record in the
Office of the City Clerk.MOTION - Cavecche SECOND. Coontz
AYES - Ambriz, Alvarez,
Mayor Murphy,
Coontz, Cavecche The Consent Calendar was approved as
recommended.PAGE 1
CITY COUNCIL MINUTES April 20, 2004
END OF CONSENT CALENDAR
4. REPORTS FROM MAYOR MURPHY - None.5.
REPORTS FROM COUNCIL MEMBERS - None.6. REPORTS
FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.7. ADMINISTRATIVE REPORTS -
None.8. REPORTS FROM CITY
MANAGER 8.1 Report on
the proposed Fiscal Year 2004-05 Budget including a summary of projected revenues and
recommended expenditures.David Rudat, City
Manager, provided introductory remarks, noting staff is presenting a balanced budget to the
City Council.John Sibley, Assistant
City Manager, reported the City is pursuing policies of excellence, while still facing economic
challenges, the biggest impact being the increased cost to fund the retirement system.Barbara
Messick, Sr.
Assistant to the City Manager, reviewed a power point presentation. She reviewed strategies to
balance the proposed budget, including programmed savings plan,amortization of PERS
safety rates over 25 years, planned use of reserves, and a reduction in funding of special
workers comp safety allocation. She reviewed General Fund Expenditures by category and department,
which total $74,745,895 and which is a 7.2% increase over FY 03-04.She reviewed
recommended staffing changes, which result in a net change of 4 additional employees.Rich
Jacobs,
Interim Finance Director, reviewed General Fund Revenue sources, which total 69,445,
438, an increase of 2.2% over FY 03-04. He reviewed budget reserves and designations.
Reservations total $16,603,607 and are comprised of Contingencies of 15,
573,607 and a debt service of $1,030,000. Department line item budget summaries were provided
to the Council.Mr.
Sibley reviewed budgetary concerns, which include the Triple Flip Impact, the backfill of Vehicle
License Fees, the state and national economies and PERS costs in future years. He noted
retirement costs have risen from $625,000 in FY 0203 to $6.3million in FY 04-05; and
these costs will not begin to stabilize until FY 06.07.
Council Ouestions
Councilmember Coontz asked about the $3.15 million shortfall in the Water Fund and if this will
cause an increase in rates in the future.
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CITY COUNCIL MINUTES April 20, 2004
8. REPORTS FROM CITY MANAGER (Continued)
Mr. Jacobs explained there have been large increases in costs in the Water Fund, including
additional CIP projects, ground water replenishment fees and an additional staff person. Staff
will be bringing back a report to the Council on proposed rate increases.
Councilmember Coontz asked about the emergency transport program and if fees will be raised
for this program; and if the State Workers Comp reform will impact the City.
The City Manager reported staff is reviewing the emergency transport program and will be
providing a report to Council. It is also too early to determine what affect the State Workers
Comp reform will have on cities.
Councilmember Coontz noted she would be asking separately for clarification on vanous
terminology.
Councilmember Alvarez spoke on the City's reserves which are 25% of the General Fund annual
operating costs; and reiterated the need for a report on the emergency transport system.
Mayor pro tern Cavecche asked for clarification on the amount of the General Operating
Reserves, as she wanted to ensure it was $3.4 million.
Mr. Jacobs explained that $2.4 million of the reserves is being carried forward to FY 05-06;
and in response to further questions by Mayor pro tern Cavecche, he explained the
proposed 216,699 decrease in anticipated FY 04.05 earnings includes the estimated $120,000 loss
of
interest.Mayor pro tern Cavecche requested a survey of every city III Orange County,
including population, budget and each city's catastrophic budget
reserve.Councilmember Coontz asked about the Internal Auditor position. Staff indicated that was
one
individual.Councilmember Alvarez asked if the CIP projects would have to be reviewed to possibly
push some of them out into the
future.The City Manager explained CIP projects are always subject to review when it comes time
to appropriate money; and the proj ects have already been scrutinized very
carefully.Mayor Murphy thanked staff for a great job in preparing the proposed budget and thanked
all staff for their efforts, especially in challenging economic
times.The City Manager pointed out that as new projects are approved, it is hopeful that the City
will see additional revenue and an improved
economy.PAGE
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CITY COUNCIL MINUTES
9. LEGAL AFFAIRS - None.10.
ADJOURNMENT The
City Council adjourned at 5:50 p.m.7i
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M '
RPHY TYCLERK
April
20, 2004 PAGE
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