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HomeMy WebLinkAbout02-20-2003 Joint City Council /RDA Study SessionMINUTES JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, FEBRUARY 20, 2003 *~*~~~~:~~~:~*~~~:~~:~~*~~~**~*~~~~~*:~***~~,~~~:*~~:~*~*~~~*******~~ CALL TO ORDER Mayor Brinley called the Joint Study Session to order at 1:40 p.m. PLEDGE OF ALLEGIANCE Community Services Director Sapp led the Pledge of Allegiance ROLL CALL PRESENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY,SCHIFFNER BRINLEY ABSENT: COUNCILMEMBERS: NONE Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Police Chief Walsh, Information/Communications Manager Dennis, Planning Manager Villa, Building and Safety Manager Russell, Public Works Manager Payne, Finance Manager Magee and City Clerk/Human Resources Director Kasad. MID-YEAR BUDGET REVIEW - FISCAL YEAR 2002-03 (F30.1) City Manager Watenpaugh provided an overview of the items to be discussed regarding the mid-year budget review. He noted that his intent PAGE TWO - STUDY SESSION - FEBRUARY 20, 2003 was to provide Council with a report as to the status of where the City stood at mid-year with regard to finances. He noted the packet of information prepared for Council's review and gave a brief description of the contents. He introduced a powerpoint presentation which indicated the Budget Highlights and Budget Goals for F/Y 02-03. He indicated that this material would be beneficial to Council for reference in the approaching years regarding setting goals and objectives. Mayor Brinley questioned if the committees and workshops included in the goals included the RDA. City Manager Watenpaugh confirmed. He indicated that the specific goals were addressed by all departments in the back-up material. He noted thatdue to the adjusted projections of the revenues and expenditures, the reserve account would contain $4,924,600 of unallocated revenues at the end of this fiscal year. City Manager Watenpaugh addressed the issues concerning the State andthe projected expenses due to Booking Fees and ERAF. Mayor Brinley asked if the State charged a flat fee. City Manager Watenpaugh explaned that the State would triple the amount of money they took for those fees in the next fiscal year. He noted the increase in the amount the City paid for Police and Fire services as stated in the contracts for those services. He provided a summary of the General Fund balances. He stated that the City maintained a reserve balance of $2 million, and the amount of unallocated revenues was $954,000. He advised Council review any additional programs or projects carefully and prioritize them. Councilman Hickman addressed the allocation of funds for any outstanding lawsuits. City Manager Watenpaugh indicated that would come out of the Reserve Fund. He noted that the City did not have any litigation against them at this time. He gave an overview of the positive accomplishments of Council regarding their long-term financial strategy. Mayor Pro Tem Schiffner noted the refinancing of the bonds in Tuscany Hills and the savings the property owners. Mayor Brinley also noted the savings provided by refinancing the bonds for the Tuscany Hills property owners; and noted the due diligence of the Council and the financial team. PAGE THREE - STUDY SESSION - FEBRUARY 20, 2003 City Manager Watenpaugh addressed the projected general fund revenues by categories and the increase in cost recovery due to the development in town. There was discussion on what fund the VLF fees would impact. He addressed the general fund expenditures and the rising cost of public safety as additional services are provided. Councilman Hickman addressed the possibility of the City having their own public-safety program as opposed to the contracts with the Riverside County Police and Fire Departments. City Manager Watenpaugh indicated that the City could not afford to have their own departments due to the fact that when an officer is injured on duty, a replacement officer is assigned to the area and the City is not responsible far their continued salary. However, if they were part of a City department, the City would be responsible for all costs incurred and that would raise the public safety service eapense. There was discussion on the different cities and their public safety departments. City Manager Watenpaugh noted the benefits the City had in contracting with Riverside County Sheriff Department. City Manager Watenpaugh gave an overview of the information provided in the Mid-Year Budget Review Packet. He indicated that staff would be available to answer any questions regarding their department goals. He stated that it would benefit Council to review the information and present their questions at a future workshop. He provided a summary of the third section of the Review regarding operations and comparisons. He indicated that included a breakdown by department so that Council wozld have an idea of where the revenues were generated. He noted the historical data included and an updated 2002-03 Redevelopment Agency Budget. He stated that the final section provided a summary of the information presented as an overview. Mayor Pro Tem Schiffner stated that he wished the public was able to understand that the tax revenue was not enough to cover all of the costs for services. He stated that the amount of property tax revenue generated was much lower to revenues collected for services and therefore the tax revenue does not support the City. City Manager Watenpaugh confirmed and noted that staff was preparing something to show the public what property taxes PAGE FOUR - STUDY SESSION - FEBRUARY 20, 2003 fund. Mayor Pro Tem Schiffner noted that the citizens would benefit from the knowledge of the costs involved in providing services to the citizens of the community and how their property taxes contributed to those services. Councilman Hickman questioned how close the City was to obtaining another auto dealership. City Manager Watenpaugh indicated that an interested party approached the City regarding the potential of new dealerships coming to town. He noted that the local dealerships were doing very well with sales. Mayor Brinley commented on the RDA budget and the funds applied to low- moderate income development. She noted how diligently Council had worked to bring the budget into the black, while paying debts. City Manager Watenpaugh noted that the modular home site had a new owner and the potential for a new business was good. Mayor Brinley noted the options to use grant funds for capital projects. Mayor Pro Tem Schiffner noted that the sale of the modular homes was considered taxable income. City Manager Watenpaugh confirmed. Councilman Buckley noted the positive sales tax numbers; and 1~ questioned the approval of the Rental Housing Program. He clarified that all lawsuit settlements were accounted for in the budget. City Manager Watenpaugh confirmed. There was discussion on the General Fund buc~et comparisons by department and the future of the budget. There was discussion on the allocation of funds that were not spent and the potential for those funds to be rolled over to the next fiscal year. Councilman Hickman noted the positive direction and accomplishments of Council. Mayor Brinley confirmed. City Manager Watenpaugh requested direction from Council regarding the Hayhurst study. He noted the proposed changes in the Community Development Department in order to reduce costs. He indicated that the Information Technology Committee was made up of City staff to address PAGE FIVE - STUDY SESSION - FEBRUARY 20, 2003 computer issues and that they would submit an RFP for technology needs. He noted the potential future costs involved in upgrading the computer system and the need for a consultant in order to determine the computer needs of the City. He noted that the GIS system had been evaluated and indicated that staff would be bringing a proposal to Council acNressing the technological needs of the City. Council confirmed an interest in the proposal. City Manager Watenpaugh addressed the Skatepark and noted that is was current as per the contract and it was in compliance. He indicated that it was having finaicial difficulties and requested a study session to discuss the issues and concerns. Eric Lee, Action Park Alliance, commented on the recent event that took place at the Skatepark which aired on FOX Television Network. He indicated that the park was a step in a positive direction for a municipality; and that the State ruled in favor of City protection from liabilityin the event that the State rules and regulations were followed. He indicated that the kids should be able to skate for free. He noted that televised events should bring in revenue and BMX bike racing could bepermitted. A short video presentation was played for Council. Mr. Lee noted they needed the City to support the Skatepark in order for the children to skate for free. He noted the method of advertising for the special events and the recognition received in Skatepark Magazine. There was discussion regarding insurance and staffing of the park. He emphasized the need for City funding. Mayor Pro Tem Schiffner noted the interest of the Council in the success of the Skatepark. City Manager Watenpaugh noted that a proposal would be submitted by staff, in the near future, addressing the Lake and the possibility of making it a separate department. PAGE SIX - STUDY SESSION - FEBRUARY 20, 2003 ADJOURNMENT THE CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION ADJOLIRNED AT 2:55 P.M. ~'AMELA BRI EY, MAYOR CITY OF LA ELSINORE ~ Respectfully submitted, ~(/~ C~~ Lisa Gibbons, City Clerk's Office ATTEST: ~ ~ ,c,"~~1 VICHI KASAD, C.M.C., CITY CLERK HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE