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HomeMy WebLinkAbout12-30-1997 Special City Council MinutesMINUTES SPECIAL CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, DECEMBER 30, 1997 KLIX41 The Special City Council Meeting was called to order by Mayor Pape at 10:05 a.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by City Manager Watenpaugh. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, BRINLEY, KELLEY,PAPE ABSENT: COUNCILMEMBERS: METZE Also present were: City Manager Watenpaugh, City Attorney Leibold, Administrative Services Director Boone, Community Services Director Sapp, Assistant to the City Manager Best, City Engineer O'Donnell and City Clerk Kasad. CONSENT CALENDAR The following item was pulled from the Consent Calendar for further discussion and consideration: Item No. 3. MOVED BY BRINLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. Received and ordered filed the following Minutes: a. Planning Commission Minutes - November 19, 1997. b. Planning Commission Minutes - December 3, 1997. (F:60.3) C. Design Review Committee Minutes - November 19, 1997. d. Design Review Committee Minutes - December 3, 1997. (F:60.4) 2. Ratified Warrant List for December 15, 1997. (F:12.3) 4. Rejected and referred to Claims Administrator for handling the Claims Against the City submitted by Eric Godfrey (CL #97 -27), John Ulrich (CL PAGE TWO - CITY COUNCIL MINUTES - DECEMBER 30, 1997 #97 -29) and Slavic, Bonebrake & Capriotte (CL #97- 30).(F:52.2) 5. Approved Public Hearing date of January 13, 1998, for the following: a. Tentative Parcel Map 28712 - Countrywide Homes. (F:110.2) ITEMS PULLED FROM THE CONSENT AL NDAR 3. Presentation of the F/Y 1996-97 Annual Audit & Financial RQQA. (F:24. 1) City Manager Watenpaugh highlighted the annual audit and financial report; and explained that it was completed and presented by Thomas, Bigbie & Smith. He advised that the City received an "unqualified" opinion for the year, or a clean bill of health. He noted the summary of the accounts and indicated that a complete copy of the report is available at City Hall. He detailed the general fund reserves, as of June 30, 1997 and advised that after deductions, the $2 million reserve was maintained. He noted that there will be a mid -year review of the budget on January 20th with the Goals & Objectives. Mayor Pape congratulated staff and Mr. Boone for the accounting award received this year. Chris Hyland, 15191 Wavecrest, .addressed a newspaper article which indicated that the RDA will come up $500,000 short this year, but noted that last year it was 800,000. She questioned if the amount would not be the same this year. She noted the statement that the City will need to pinch pennies to address future costs, and suggested that there are some high end jobs which could be laid off to allow for brining back less expensive employees. She further noted that she heard there was a possibility of there being CFD assistance to TMC in the amount of $5 million; and questioned what happens if they run away with the money, "like they did in Riverside ". City Manager Watenpaugh noted page 3 of 3 of the audit report; and clarified the balance as of June 30, 1997. He expressed uncertainty with regard to the question about the $500,000 shortfall, but indicated that the money transferred from this year's budget for a subsidy, was just under $900,000. Administrative Services Director Boone noted that he did not read article yet, however he did discuss the assessed value reductions with the press representatives, which were about $500,000 in losses over the last two years. He indicated that the City did assist the RDA with $820,000 this year and it is anticipated that amount will be about $968,000 in the coming year. Councilman Alongi questioned the report, noting that he was not sure why this was being done at a special meeting, when it could have been considered on January 13th. He questioned page 1 of 3 of the report regarding the General Fund Reserves on June 30, 1997. He questioned the General Fund Reserve of $3 million and questioned whether this was saying that there were no other deductions from June 30th to present; or if the amount of money to come out of the $3 million to December 30, 1997 is known. He inquired PAGE THREE - CITY COUNCIL MINUTES - DECEMBER 30, 1997 how much is in the reserves right now. Administrative Services Director Boone indicated that there is presently about $2.1 million if funds are not preserved for cash flow advances, such as the Lighting and Landscape Maintenance District. Councilman Alongi questioned why LLMD funds were coming out of the reserves, and not out of the LLMD account. Mr. Boone explained that the City will not receive the first LLMD check from the County until next month. Mr. Alongi inquired if this reimbursement would put the reserves back up to $2.1 million. Mr. Boone confirmed and clarified further. Mr. Alongi questioned the loans listed as payable to Library fund and Park fund. Mr. Boone clarified the loan amounts. Councilman Alongi reiterated that this matter should have been discussed at the meeting on January 13th. He further questioned where the funds for repayment of the loans would come from. Mr. Boone indicated that the funds would come from either the reserves or waiting for general fund revenue to increase and pay them back. Councilman Alongi questioned if the same could be done with the parks. Mr. Boone indicated that there was no revenue source to do so. City Manager Watenpaugh clarified the sources of revenue in the parks fund and the library fund. Alongi stressed the outstanding loans, and where the repayment will come from. Mr. Boone stressed that there would need to be a new revenue source or use the reserves. He stressed the funds which were borrowed and the limited ability to use them. Mr. Alongi stressed that they were borrowed to balance the budget; and suggested that the money could have been borrowed to keep the parks open. Mr Alongi noted page 3 of 3 and a reference to the RDA debt service funds for the three project areas and requested and explanation of those figures. Mr. Boone clarified the debt service, set aside and capital projects funds. Councilman Alongi qucs�ioned the 20% set -aside from the tax increment for housing, etc. Mr. ,Boone clarified that of the funds listed the only fund controlled by i k" ;; PAGE FOUR - CITY COUNCIL MINUTES - DECEMBER 30, 1997 UNANIMOUS VOTE TO RECEIVE AND ORDER FILED THE 1996 -97 ANNUAL AUDIT AND FINANCIAL REPORT. No Comments. CITY MANAGER COMMENT No Comments. CITY ATTORNEY COMMENTS No Comments. ADJOURNMENT THE SPECIAL CITY COUNCIL MEETING WAS ADJOURNED AT 10:24 A.M. ATTEST: -S Cl CLERK CITY OF LAKE ELSINORE tOR TORE