HomeMy WebLinkAboutItem No.1AMINUTES
CITY COUNCIL /REDEVELOPMENT AGENCY
WORK SESSION
CITY OF LAKE ELSINORE
130 S. MAIN STREET
LAKE ELSINORE, CALIFORNIA
TUESDAYi FEBRUARY 2P 1993
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CALL TO ORDER
The Joint City Council /Redevelopment Agency Work Session was called
to order by Mayor Pro Tem Dominguez at 3:05 p.m.
ROLL CALL
PRESENT: COUNCILMEMBERS /BOARDMEMBERS: ADONGI,cZERVENY, WINKLER,
ABSENT: COUNCILMEMBERS /BOARDMEMBERS: WASHBURN
Also present were: City Manager Molendyk, City Attorney Harper,
Administrative Services Director Boone, City Planner Christen,
Community Development Manager Shear, Public Services Special Director
Tecca, Manager of
Coordinator Wood City Treasurer Projects n
TreasurerPape and City � Projects
Clerk Kasad.
DISCUSSION ITEMS
1. State Budget Overview.
2. Impact on Local Government.
City Manager Molendyk introduced Doug Ayres, Management Services,
Inc., indicating that he would provide information on the potential
shifts in State budgeting over the next few years and alternatives
for generating new revenues.
Doug Ayres congratulated the City Council for being in the top 1/3
of the cities in the State and looking forward to anticipate cuts
and find solutions to them. He presented his credentials as a
point of reference and commented on the economies of the Federal
and State deficits and their impacts on local government. He noted
that Proposition 13 had paralyzed the political systems. He
stressed the limited public works accomplished under the last four
governors and the resulting lack of credibility of elected
officials. He further stressed that the State is in a survival
mode because of the term limits and the new found competition from
local governments. He indicated that speculation on the Governor's
upcoming budget shows it to be approximately $10 billion out of
balance. He further indicated that it is anticipated that the
legislature will probably allow an additional 1/2 cent of sales tax
and take the rest of the property tax and vehicle in -lieu fees over
the next few years. He further noted that the State will most
likely have access to most funds excluding third party debt. He
indicated that the economy will not materially improve in the near
future, however it will improve in the long term.
Mr. Ayres suggested if local governments are to survive the current
economic times, steps should include, 1) secure short term revenue .
sources, 2) rebuild credibility by continuing to provide the
services, 3) make special benefit recipients pay full cost, and 4)
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PAGE TWO - JOINT WORK SESSION MINUTES - FEBRUARY 2, 1993
maintain quality staff to address the future. He stressed the need
to require payment for services over and above those provided to
the general public.
City Manager Molendyk reminded Council of the cuts already passed
down by the State this year and stressed the need to restructure
local government.
Councilman Winkler commented on the work done in 1986 to
restructure the fees for the City and assumed that these have been
appropriately updated. He questioned, based on this information,
where the City should go from here.
Mr. Ayers indicated that detailed analysis of general benefit
versus special benefit services would need to be done and based on
that the Council would need to make hard decisions, including non-
resident /resident fees and other revenues such as utility user
taxes.
Councilman Winkler addressed Mr. Ayers comments regarding
maintenance of quaity staff and the tendency to address staff
salaries as an off -set of the costs. Mr.1574XAyewlarified the
limitations and abilities of the Council. Mr. Winkler further
addressed prior discussions regarding a police tax and the impact
he felt it had on the recent election. Mr. Ayers commented that
the Council needs to decide if they will "sink with the ship ". He
stressed that this is not an easy situation. Mr. Ayers further
commented that the public still feels the funds are available and
this is why cities must seek to reestablish credibility, while at
the same time requiring that residents pay for services received.
City Treasurer Pape addressed alternatives to increasing revenue
and inquired whether a natural resource related tax would be
possible. Mr. Ayers indicated that a mineral excise tax was a
possibility. City Attorney Harper indicated that this would be
more likely in a Charter City. Mr. Ayers indicated that this has
been handled more as a zoning issue in other circumstances.
Councilman Winkler commented on the potential for continuing the
existing 1/2 cent sales tax and expressed concern with the impact
on area merchants. Mr. Ayers indicated that with the current
transportation system, an additional 1% or 112% is not a big
concern.
Councilwoman Cherveny requested examples of short term
alternatives. Mr. Ayers indicated that Assessment Districts, or a
program to ace the state out of the money are possibilities. He
commented on the alternatives available to charter cities over
general law cities stressing increased local control.
City Manager Molendyk commented that it is appropriate to address
a short term plan, but stressed the need for a total restructuring
in the next few years. He indicated that staff would be updating
the previous work on fees, but it is still necessary to look for
new revenue sources.
Mr. Ayers addressed utility users taxes as a quick way for more
funds, but expressed concern that the balance of services to
revenues has not been properly done in other communities.
Mayor Pro Tem Dominguez questioned special assessments and whether
they can be justified. Mr. Ayers indicated that he was assured
they could be justified.
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PAGE THREE - JOINT WORK SESSION MINUTES - FEBRUARY 2r 1993
City Manager Molendyk addressed the cuts of the last two years
including the lay -offs, cuts in capital expenditures, etc. and
suggested that the thought process for budgeting needs to be
adjusted.
An oURN ENT
The joint work session was adjourned at 4:22 p.m.
ATTEST:
VICKI KASAD, CITY CLERK
CITY OF LAKE ELSINORE
FRED DOMINGUEZ, MAYOR PRO TEM
CITY OF LAKE ELSINORE
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