HomeMy WebLinkAboutCC MINUTES 2006 07 03 - SPEC
MINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL
TUSTIN, CALIFORNIA
JULY 3, 2006
CALL TO ORDER - 4:00 P.M.
ATTENDANCE
Present: Mayor Doug Davert; Councilmembers Jerry Amante and Lou Bone
Absent: Mayor Pro Tem Tracy Worley Hagen and Councilmember Tony
Kawashima
City Clerk: Maria R. Huizar, Chief Deputy City Clerk
Others Present: William A. Huston, City Manager and Douglas C. Holland, City Attorney
PUBLIC INPUT - None
WORKSHOP - Fiscal Year 2006/2007 Budget
FY 2006-07 Program and Financial Plan
The draft operating budget for all funds ensures that reserves are at levels that protect the City's
financial interests and provide the flexibility to adjust in the future if needed. In the past several
years through prudent financial planning, the City has been able to sustain consistent levels of
services while:
. Maintaining a 15% General Fund operating reserve for cash flow, investment income and
unforeseen contingencies;
. Absorbing the annual loss of property tax revenue shifted to the Educational Revenue
Augmentation Fund (ERAF) as mandated by the State;
. In fiscal years 2004-05 and 2005-06, absorbing the loss of over one million dollars in additional
General Fund revenue shifts to the State;
. Transferring monies to the capital improvement and park development funds in order to
complete essential projects;
. Transferring monies to the liability fund to meet obligations for the City's self-insured retention
level.
Total Revenue
Total Expenses
Use of Funds
State Impacts on General Fund
. Educational Revenue Augmentation Fund-diverts property tax revenue to education. Since
1992-93 loss totals $20,871,712 (projected through fiscal year 2006-07)
. Proposition 57 - Known as the "triple flip." Provides a revenue stream State needs to secure
recovery bonds by:
o Reduced City share of sales tax from 1.0% to .75%
o Lost sales tax is replaced by property taxes (I.e., ERAF)
City Council Meeting
Minutes
July 3, 2006
Page 1 of 2
o 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 ($3.8 million in 2004-05 and in 2005-06)
· Cities agree to lose VLF revenue in 2004-05 and 2005-06. Tustin's share is $1 million each
year.
General Fund Revenue
General Fund Expenses
Proposed New Positions
Expenditures - 5 year Budgeted vs. Actual General Fund
Capital Improvement Project vs. Operating Budget
Property Tax Distribution
Sales Tax
Educational Revenue Augmentation Fund (ERAF) Losses
Public Safety Costs vs. Tax Revenues
Capital Improvement Projects
Seven Year CIP
Year End Projected Fund Balance
Policy Considerations
. Financial Planning-Fiscal Year 2006-07 and beyond
o Economic conditions
o Recovery from State takeaways and loss of sales tax generators
o Regulatory requirements
o Cost recovery
oRates
o Commitment to technology
o Use of fund balances
. Project Phasing
o Capital costs
o Operating costs
o Commitment of staff resources
. Setting priorities
o Day-to-day operations
o Tustin Legacy project
o Tustin Town Center Project (ULI)
. Library financing
. Trash contract
. Fire contract
. Regional issues
o Measure M
o RHNA
o Water quality
ADJOURNED
PAMELA STOKER,
City Clerk
DOUG DAVERT,
Mayor
City Council Meeting
Minutes
July 3, 2006
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