The URL can be used to link to this page

Home My WebLink AboutCC MINUTES 2009 06 02 (SPECIAL)MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL TUSTIN, CALIFORNIA JUNE 2, 2009 CALLED TO ORDER MEETING #2212 AT 2:34 P.M. ATTENDANCE Present: Mayor Doug Davert; Mayor Pro Tem Jerry Amante; and Councilmembers Deborah Gavello, John Nielsen, and Jim Palmer Absent: None City Clerk: Pamela Stoker Others Present: William A. Huston, City Manager; and Doug Holland, City Attorney PUBLIC INPUT -None. BUDGET WORKSHOP -Fiscal Year 2009/2010 City Manager Huston presented Fiscal Year 2009-10 Program and Financial Plan Budget: Beyond Fiscal Year 2009-10 • If State "borrows" $1.5 million, will it be paid back? • When will the recession end and at what rate will recovery occur'? • The loss of General Fund revenue in 2008-09 and 2009-10 (and beyond) will not be recovered . • What effect will property reassessments have on property tax revenue? • PERS rates. • If revenue does not recover, further reductions in expenses will be unavoidable. • Will there be a major restructuring of State govemment? If so, how will local government be affected? Fiscal Year 2009-10 General Fund • Proposed expenditures are 6.8% less than the authorized 2008-09 budget and 0.55% more than the projected amount. • Proposed 2009-10 expenditures are less than the 2006-07 actual amount. • Proposed revenue is 8.5% less than the 2008-09 budgeted amount and 1.2% more than the projected amount. • Projected 2009-10 revenue includes a $2 million transfer from the Capital Projects Fund. • Projected 2009-10 property tax revenue is 0.8% less than the 2008-09 projected amount. • Affordable housing reimbursement payment from the Tustin Redevelopment Agency has been increased by $929,100 in 2009-10. This reflects a 15 year in lieu of 20 year debt service payment schedule. Special City Council Meeting June 2, 2009 Minutes Page 1 of 13 • Proposed 2009-10 sales tax is 19.4% less than the 2008-09 budgeted amount and 8.8% less than the projected amount. Fiscal Year 2009-10 08-09 Authorized 09-10 Proposed Dollar Change % Change Total Budget $195,787,500 $158,062,132 ($37,725,368) -19% Total General Fund Budget $52,983,200 $49,385,200 ($3,598,000) -7% • City Council $170,900 $144,800 ($26,100) -15% • City Clerk $512,300 $356,400 ($155,900) -30% • City Attorney $505,500 $525,000 $19,500 4% • City Manager $878,500 $699,100 ($179,400) -20% • Finance $921,200 $1,039,100 $117,900 13% • Human Resources $732,400 $728,600 ($3,800) -1 • Information Technology $1,263,400 $1,296,900 $33,500 3% • Community Development $4,000,400 $3,059,800 ($940,600) ° -24 /o • Public Works $10,870,000 $9,551,500 ($1,318,500) -12% • Police $23,992,600 $22,778,300 ($1,214,300) -5% • Fire $5,202,200 $5,409,000 $206,800 4% • Parks & Recreation $2,985,600 $2,939,200 ($46,400) -2% • Non-Departmental $948,200 $857,500 ($90,700) -10% Fiscal Year 2009-10 General Fund • Proposed expenditures are 6.8% less than the authorized 2008-09 budget and 0.55% more than the projected amount. • Proposed 2009-10 expenditures are less than the 2006-07 actual amount. • Proposed revenue is 8.5% less than the 2008-09 budgeted amount and 1.2% more than the projected amount. • Projected 2009-10 revenue includes a $2 million transfer from the Capital Projects Fund. • Projected 2009-10 property tax revenue is 0.8% less than the 2008-09 projected amount. • Affordable housing reimbursement payment from the Tustin Redevelopment Agency has been increased by $929,100 in 2009-10. This reflects a 15 year in lieu of 20 year Special City Council Meeting June 2, 2009 Minutes Page 2 of 13 has been increased by $929,100 in 2009-10. This reflects a 15 year in lieu of 20 year debt service payment schedule. • Proposed 2009-10 sales tax is 19.4% less than the 2008-09 budgeted amount and 8.8% less than the projected amount. • Projected 2009-10 sales tax is less than the 2000-01 actual amount and less than the previous seven fiscal years. • Cumulative loss of sales tax revenue for 2008-09 and 2009-10 could reach $6.9 million. This amount is based on the assumption that the 2008-09 budgeted amount would have been achieved. • The projected reserve (6/30/10 estimated balance) is 23.9%. • If State enacts a revenue shift (per Prop. 1A), $1.5 million of 2009-10 property tax revenue will be lost. This would amount to 3.1 % of General Fund revenue and 12.7% of the General Fund reserve. The projected reserve would decrease to 20.8%. • How is the 23.9% projected reserve achieved? Across the board reduction in expenses (6.8%). Deferral of Equipment Replacement Fund charges for an additional year. 2.0 million dollar reversal of prior year transfer to the Capital Projects Fund. Use of $650,000 in Park Development Fund balances (from prior General Fund transfer) to increase Liability Fund balance. Fiscal Year 2009-10 Inter Fund Transfers • Proposed $2.0 million reversal of prior transfer of General Fund monies to Capital Projects Fund. • Proposed 2009-10 General Fund budget does not include $762,000 in Equipment Replacement Fund charges. This amount should be reinstated in fiscal year 2010-11. • Proposed reversal of $650,000 of prior transfer of General Fund monies to Park Development Fund. Funds will be redirected to the Liability Fund. • Proposed transfer of $750,000 from the 95-1 Construction Fund (Tustin Ranch assessment district) to the Tustin Ranch Landscape and Lighting District. Transfer is contingent on further City Council action regarding closeout of the 95-1 Construction Fund. State Impacts on General Fund • Educational Revenue Augmentation Fund (ERAF~iverts property tax revenue to education. Since 1992-93 loss totals $22,400,000 (projected through fiscal year 2008-09) • Proposition 57-Known as the "triple flip." Provides a revenue stream State needs to secure recovery bonds by: Reduced City share of sales tax from 1.0% to .75% Lost sales tax is replaced by property taxes (i.e., ERAF) Schools are made whole by State general funds • VLF replacement is enacted pursuant to Proposition 1A. Property tax revenue (ERAF) is used to replace lost VLF. • Cities agree to lose VLF revenue in 2004-05 and 2005-06. Tustin's share was $1 million each year. • In FY 2008-09 the State attempted to divert redevelopment funds. Impact on Tustin would have been $1.3 million. Special City Council Meeting June 2, 2009 Minutes Page 3 of 13 Reviewed Total Revenues, Total Expenses, Utility Expenses, use of Funds, General Fund Revenue, and General Fund Expenses Property Tax Distribution • FY 2009-10 Public Safety Cost versus Tax Revenues • Total Public Safety Costs = $28,187,300 • Use of Reserves • FY 2009-10 Capital Improvement Projects • 2009/10 - 2015/16 Seven Year CIP Department Presentations City Clerk • FY 2009-10 Budget Overview • Coordinate annual revisions to the Comprehensive Schedule of Fees • Review records stored at the corporate yard and destroy obsolete records • Review the City's Records Management program and determine if records retention schedules and maintenance guidelines are appropriate; examine alternative storage solutions for departmental records • Prepare Request for Proposal for legal review and re-codification of Tustin City Code with re-codification in FY 2010-11 • Defer legal review of City Code • Administrative Secretary position to remain vacant • FY 2009-10 budget = $356,400 Reduced by $155,900 from previous fiscal year • Reductions and changes to expenditures: Legal Review of the Tustin City Code deferred Vacant Administrative Secretary position Finance and Information Technology • Finance and Information Technology FY 2009/10 Budget Overview • To meet additional requirements due to new accounting and auditing standards the department is: Adding an Accounting Supervisor position Completing an Internal Controls risk assessment • Information Technology will continue to support and maintain existing projects and core needs. No new projects added. Human Resources Department • FY 2009-10 Budget Overview • Key areas include the following: Recruitment & Selection Classification & Compensation Employee/Labor Relations Benefit Program Administration Training & Employee Development Special City Council Meeting June 2, 2009 Minutes Page 4 of 13 Safety Programs &Workers' Compensation General Liability & Risk Management Policies & Procedures Oversee budgeting in: Human Resources Worker's Compensation Liability Unemployment Significant Reductions include: Training Recruiting Expenses Employee Recognition Elimination of Management Wellness Benefit Elimination of Employee Benefit Website Community Development • FY 2009-10 Budget Overview • Community Development budget reduction: including 4 vacant positions -represents a $940.600 cost reduction from FY 2008/09. • When building "boomed" at Tustin Legacy, 10 contract building inspectors and contract plan-check firms were hired and then reduced as construction activity subsided. • Reduction in planning, building inspection and code enforcement staff this year means: Planning: Planners performing code enforcement Planners handling more projects per person Planners assigned more public counter duty Building: Building Inspectors performing over 200 Code enforcement Water Quality Inspections Building Inspectors and plan check staff handling more projects per person Reduced timeliness of plan check and inspection turnaround. Code Enforcement: Code Enforcement staff reduced by 1/3 (2 officers for entire City) New work - Admin Citation Program/Shopping Cart Ord./Parking Ordinance New Foreclosed Property Maintenance Issues Reduced Code Enforcement presence/Limited Citywide and Weekend Availability Increased Water Quality Inspections, Proactive Enforcement Delayed In FY 2009-10 the following which would have required additional funding have been postponed: General Plan Update Zoning Code Update Subdivision Ordinance Update Zoning Map Update General Plan Land Use Map Update Potential Annexation Projects Special City Council Meeting June 2, 2009 Minutes Page 5 of 13 Old Town Office on First Floor Ordinance 1St Street Specific Plan Update Old Town Commercial Design Guidelines Old Town Sign Code City Landscape Guidelines Update Old Town Parking In-Lieu Fee Study Historic Resources Survey Update CLG Grant application Private Development Construction Standards Update Grading Manual Update • Consider review of cost recovery for graffiti (on private property), business license processing and building permits. • Development activities have begun to rebound • 46% increase in building permits for all types issued since Jan. to mid May 2009 • 45 planning applications (CUP, Zone Change, etc.) received Jan. to mid May 2009 • Ongoing Tustin Rail Station Garage, Tustin Legacy, Pacific Center East, Town Center New Beginning projects Public Works • Budget Overview FY 2009-10 • Operating Budget $17,493,400 ; 75 Authorized Positions Program Positions Budget Administration 5 $962,300 Engineering 14 $2,824,900 Emergency Services 1 $78,300 FS -Streets 7.5 $852,600 FS -Landscape 16.5 $2,663,800 FS -Vehicles 6.5 $982,800 FS -Buildings 3 $1,186,800 Water -Operations 17.58 $2,717,500 Water -Main Street Facility 1.35 $585,200 Water- 17th St Desalter 1.22 $1,486,200 Water -Production 1.35 $4,846,900 Lighting District 0 $524,500 Landscape and Lighting District 0 $781,600 Major Maintenance Responsibilities • Current Value = $209,000,000 106 centerline miles of roadway Special City Council Meeting June 2, 2009 Minutes Page 6 of 13 125 traffic signals 1,000 storm drain catch basins 43 miles of storm drain 15 parks consisting of 97 acres 112 acres of medians, parkways & public row 7 buildings consisting of 202,216 sq. ft. 392 pieces of equipment incl. 166 pieces of rolling stock 15,300 street trees 13 water wells 6 reservoirs 4 booster stations 170 miles of water line • FY 2009-10 Operating Budget Constraints • Water Quality -Proposed Budget $600,000 NPDES PERMIT TMDL Studies • Electricity -Proposed Budget $1,697,320 SCE Increases Average 15% for Buildings, Water and Street Lighting • Fuel -Proposed Budget $265,000 FY 08/09 Budget projection is $325,0000 • Groundwater Production -Proposed Budget $ 2,940,940 11,810 ac/ft @ $249 ac/ft Replenishment Assessment • Purchased Water- Proposed Budget $1,157,102 2,270 ac/ft Costs increases in Jan 2010 from $602.50 ac/ft to $729.03 ac/ft • Eng/Architectural Services -Proposed Budget $115,000 FY 08/09 Adjusted Mid Year Budget was $220,000 Required in FY 09/10 5 yr Speed Zone Study ($45k); Annual Traffic Counts ($20k) • Street & Alley Repairs -Proposed Budget $60,000 FY 08/09 Budget was $100,000 For potholes and miscellaneous pavement repairs • Citrus Park -Proposed Budget $ 49,950 December-January Opening Budget is for new costs for utilities and materials No additional personnel and equipment • Street Sweeping Program -Proposed Budget $0 Enforcement Personnel and Equipment Estimated at $175,000 FY 2009-10 Capital Improvement Program Project Category Total New Budget Flood Control 1 - 136,881 Park Facilities 4 2 2,880,281 Public Facilities 5 3 7,652,124 Traffic Control 2 - 493,350 Special City Council Meeting June 2, 2009 Minutes Page 7 of 13 Project Category Total New Budget Transportation Fac. Maintenance 4 1 6,229,385 Transportation Fac. Capacity Enhancement 4 - 1,948,296 Tustin Legacy 9 - 14,672,605 RAD 95-1 0 - -0- Water Distribution 1 - 25,000 Water Storage 1 - 282,776 Water Production 1 - 124,070 Total 32 6 34,445,398 FY 2009-10 Capital Improvement Program New Projects Fund Source Budget Red Hill Parking Bay cdbg $200,000 Playground Renovations (Magnolia, Laurel Glen) pd $296,000 Tustin Metrolink Parking Structure gma-7 $200,000 Go Local Phase II m-t $10,000 Tustin Ranch Irrigation System Upgrade Trmfi $1,500,00 0 San Juan Ave. Sidewalk cdbg $100,000 Total 2,306,000 * TRMF Tustin Ranch Maintenance Fund is surplus funds from the completion of RAD 95-1 (Fund 30) FY 09-10 Top 10 Capital Proiects Project Budget Tustin Library Expansion $5,110,481 Jamboree Road Rehabilitation $2,975,717 Citrus Ranch Park $2,338,281 Tustin Ranch Road Rehabilitation* $2,033,668 Tustin Ranch Irrigation System Upgrade** $1,500,000 Annual Major Maintenance $1,120,000 Special City Council Meeting June 2, 2009 Minutes Page 8 of 13 Project Budget Tustin Legacy Park $1,095,983 Newport Extension Phase II $895,000 Major Building Maintenance $831,643 Legacy Fire Station $641,850 Total $18,522,62 3 Dependent upon the availability of State Prop 1 B and Prop 42 funds ** Surplus funds from RAD 95-1 (Fund 30) Police Department • Police Department FY 2009-10 Budget Overview • FY 2009/10 Proposed Police Budget is $22,778,300 91.4% labor 8.6% operating cost 46% of General Fund expenditures Staffing • 147 full time personnel 95 sworn positions 52 civilian positions • 16 part time personnel 7 reserve police officers 3 part time civilian personnel 6 police cadets • 20 police chaplains/volunteers • 27 police explorers • Police Department FY 2009-10 Budget Overview Overall Budget Decrease $1,214,300 Total decrease in personnel costs: $796,000 Total decrease in operating costs: $418,300 Contributions to Personnel Costs Decrease: 3 full time positions frozen 2 part time positions frozen Overtime reduced Part time /temporary hours reduced Over-hire budget eliminated Contributions to Operating Costs Decrease: Training reduced to essential /mandated only Program support budgets streamlined w/little impact to programs Office maintenance and equipment costs reduced Uniform costs reduced following FY 2008/09 new uniforms issuance Police vehicles maintained in fleet longer Operational goals for FY 2009-10 Special City Council Meeting June 2, 2009 Minutes Page 9 of 13 • Reduction of graffiti by 5% • Reduction of Part 1 crimes by 5% • Reduction of Part 2 crimes by 5% • Reduction of injury traffic collisions by 5% • Complete research, purchase, and installation of new Mobile Data Computers, Mobile Audio Video Systems, and wireless download in all police department vehicles. • Monitor and ensure objectives are met for the 4"' year of the Police Department's Strategic Plan (2006-2010): Prepare a Wellness Program for the Department Implement the automated/paperless report writing process Continue the "self-assessment" phase of the CALEA Accreditation Process Parks & Recreation Services • FY 2009-10 Budget Overview • Reduces the number of Community Services Commission meetings from 11 per year to 10. • Eliminates Commission participation in the California Park and Recreation Society (CPRS) Training Conference in March 2010. • Reduces the office supply inventory and limits purchases for administrative support. • Minimizes full and part time staff training and networking opportunities • Cancels NRPA (National Recreation and Parks Association) and other non-essential memberships and subscriptions. • Defers replacement of outdated technical equipment; printers, copy machines, fax machines, etc. • Reduces support supplies for various programs • Defers placement of some sports programs and parks equipment • Reduces deployment of part-time staff for large City events • Requires reduction of some costs associated with special events (marketing, sound, lighting, etc.) • Continue with complete hours of operation at city facilities, with fewer assigned part- time personnel on shift, which may affect immediate customer service interaction and may limit pro-active activities with facility patrons. • Implement a complete summer calendar of safe and wholesome youth day camp programs at city facilities with a responsible staff to camper ratio (8:1); however the camp will offer fewer off-site excursions or present discounted off-site excursions which reduces admission and transportation costs. • Coordinate and implement a free city-wide July Fourth Celebration, with a complete 20 minute patriotic fireworks display; reduce city sponsored patron giveaways and reduce deployment of part-time event staff; possible decrease in musical band's entertainment value. (local band) • Present the annual Easter Egg Hunt at Tustin Sports Park; deploy fewer part-time personnel to conduct games and activities during the event; less effective set-up and clean-up of event equipment and supplies. • Plan and present eight, free summer Concerts at Peppertree Park with a decrease in contract sound production and only hire value based local bands. Possibly present one summer concert as a school or local showcase of bands to reduce or eliminate entertainment costs for one show. Special City Council Meeting June 2, 2009 Minutes Page 10 of 13 Redevelopment Agency • FY 2009-10 Budget Overview • Created in 1976, there are three RDA Project Areas: Town Center-360 Acres South Central-398 Acres MCAS Tustin-1508 acres • Major Projects • Complete the "Tustin Town Center New Beginning" Study • Complete the Final Phase of the new Tustin Library • Complete a new Commercial Rehabilitation Program • Support marketing & promotion of Old Town Tustin • Update 1st Time Homebuyer and Res. Rehabilitation Programs • Negotiate development of a mixed use project on the former AAE site • Coordinate property acquisition and final design for Newport Avenue Extension north • Develop a new Commercial Rehabilitation Program • Monitor Foreclosure Activity • Negotiate extension of affordability restrictions on 3 Apt. projects • Market LAMBRA Benefits to future eligible tenants • Coordinate and Monitor Legacy activities The District at Tustin Legacy & Army Reserve Issues The Villages of Columbus ATEP-SOCCCD site County of Orange conveyance sites TUSD school and conveyance issues Tustin Legacy Infrastructure Improvements • Update on-line and collateral marketing materials. • New outreach efforts for business retention & expansion is • Develop a monitoring program for all Agency agreements. • Coordinate an analysis of assessed valuation in the Project Area and oppose any significant appeals Operational Budget • Agency Operating Budget by Division appears to have increased but there are some anomalies contributing to this: MCAS Tustin Enterprise Fund expenditures ceased on May 13, 2009 (Navy recoupment period). Staff and Legacy redistributed to other RDA accounts Agency is funding $4,030,167 in its Housing Set Aside Accounts to Reimburse General Fund for provision of Affordable Housing. Council discussion: Councilmember Palmer -requested clarification on general fund expenses of $49.3 million versus pie chart of $121 million for operating expenses. What was added? $49.3 includes all operating budgets. What is expense for Concerts in the Park program, cost to be about $26,000; Tustin Youth Center income? under $10,000. Number of vehicles the City owns and operates? About 120. Requested information be presented to Council in the future. Special City Council Meeting June 2, 2009 Minutes Page 11 of 13 • Councilmember Gavello -requested explanation on reserve amount and asked why we are staying with 23.9% reserve number? Used as cash flow with goal to maintain 20%. If you look at the chart, we go into July 1 with a 24.5% General Fund reserve, and then when you talk about the reduction in revenue and cutting expenses, then adding adjustments, we are projecting a reserve of 23.9%. Would you feel comfortable if it dropped to 20% and departments added back some of the services they have cut? Probability very high that the 23.9% is going to drop down to 20.8% when the State enacts Prop A. We have made no provision for expired labor agreements, potential of sales taxes dropping even further, and looking into Fiscal Year 2010/11 we know we have higher costs. All employees have really stepped up to balance cutting costs, maintaining services and being as productive as possible. Total revenue of the Special Districts Fund $9,438,000 of the revenue we received, is that all Tustin Ranch? No, it includes Assessment District 95-1, The Landscape Lighting District, & Street Lighting District. On Sales and Use Tax, we are still anticipating a further decrease? WH: We are projecting for FY 08/09 we will finish up with sales tax declining about 15.2% through June 30, and projecting additional 4.9% decline next year. Why is personnel costs in the CM Dept higher? Reallocated costs from General Fund to the Redevelopment Agency, and water funds which is an in-house adjustment. Graffiti Removal - is contract a set amount, because budget amount is less? The costs come from three different funds, CDBG, RDA, GF between Public Works and Community Development. We try to use CDBG and RDA funds first, because they are restricted funds, and use general funds last. The two funds have been sufficient to cover costs. If we experience a shortfall next fiscal year, we would come back to Council and ask for additional funds. The police department has an aggressive program on catching taggers and there is a decline in graffiti. Where, in the budget is the Crossing Guard program? Are we looking at allocating more for additional crossing guards? The District has assumed that the City will pick up additional crossing guards, since they plan to eliminate some bus routes; It is a poor assumption. We are consolidating crossings to save money -the expense is over $500,000. • Councilmember Nielsen -human resources eliminated employee benefits website, was that with an outside firm? Yes. Old town parking study and residential design guidelines will be done in-house. Do we have costs of staff time being spent on this? No. Do we expect more federal stimulus money to affect Capital Improvement Budget? Expecting some Energy Block Fund money about $677,000 with the application due on June 25~'. • Mayor Pro Tem Amante -page 12 of budget public safety services, is $5.4 million budget represented in the pie chart? Yes. Page 13 transfer of special funds to general fund of 6%, moving out of special into GF? Yes. Page 14 water funds to affect capital funds based on where we are now in terms of income? Measure M funds $1.49million, that number is softening at OCTA, Mayor Pro Tem encourages PW to take a hard look at base assumptions. Expects gas tax, prop 42, and prop 1 a to be raided by State; page 17 sales tax concerned with soft numbers, staff needs to track sales tax; line item expenses considered, workers compensation huge shift, what is causing it? Funded by department depending on classification, in January was suspended for the remainder of the year, so difference between anticipated expenditures and proposed budget is due to charge by department for all 12 months and recent audit on costs adjusted the amounts. Would like to look at mid-year and: consider street and alley repairs, street sweeping enforcement, TDML studies (advocate against), transfer of 95-1 Bill regarding irrigation problems, need to have better soil/clay; concerned with police cuts on training. Special City Council Meeting June 2, 2009 Minutes Page 12 of 13 • Councilmember Nielsen - P&R (page 101) increase in support services; reductions in personnel costs -sports program reflects costs of living expenses, same as senior center; no overtime only merit increases; new park construction (Citrus Park) to be completed in September and open in 2010. • Councilmember Gavello -concerned with high telephone expense, council to consider lowering cost; large capital expense to purchase new phone system. Would like council to consider funding vacant code enforcement officer position; park fund reduced concerned that funds will not be replaced to fix parks. • Councilmember Palmer -dollar value of reserve funds is $11.8 million; would like Council to consider at mid-year budget the leasing of the Tustin Youth Center to a non- profitorganization. • Mayor Davert -budget reflects cuts that need to be made without affecting level of service; balancing budget without any increases; no layoffs, no utility taxes; consider funding Code Enforcement Officer position at mid-year budget; proposed that council adopt budget at the June 16'h meeting. • Councilmember Gavello -add code enforcement now rather than wait for 6 months. budget is fluid and if needed would return to Council before mid-year budget review. Consensus from Council that the Budget be agendized for the next regularly scheduled City Council Meeting on June 16, 2009. ADJOURNED - 5:15 p.m. DOUG DAV Mayor ; .,~ PAMELA STOKER City Clerk Special City Council Meeting Minutes June 2, 2009 Page 13 of 13