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HomeMy WebLinkAbout09-12-1996 Special Joint CC/RDA/PFA MinutesD~IINUTES SPECIAL JOINT CTTY COUNCIL/ REDEVELOPMENT AGENCY/ PUBLIC FINANCE AUTHORITY MEETING CITY OF LAKE ELSINORE 130 S. MAIN STREET LAI~ ELSINORE, CALIFORNIA THURSDAY, SEPTEMBER 12,1996 ~~cx~~xax**xxaxxazxx*rexa~*xxit~caxx*xxxzxx*xxxrczxrczz**iex~*fe*~***~c~*x~cs**~tx**x*~tx CALL TO ORDER The Special7oint City CounciURedevelopment Agency/Public Finance Authority Meeting was called to order by Mayor Pape at 11:35 a.m. ROLL CALL PRESENT: COUNCILMEMBERSBOARDMEMBERS/ AUTHORITY MEMBERS: ALONGI, BRINLEY, KELLEY, METZE, PAPE ABSENT: COUNCILMEMBERSBOARDMEMBERS/ AUTHORITY MEMBERS: NONE Also present were: City Manager/Executive Director Molendyk, Assistant City Manager Watenpaugh, Administrative Services Director Boone and City Clerk/Clerk of the Board Kasad. Discussion of Short/Lonp_ Term Financial Plan.(F:30.1) Rod Gunn, Rod Gunn & Associates explained the existing bond pool and the City/Redevelopment Agency reserves. He further explained that there are significant deficiencies and pending obligations and noted the potential for non-payment default in some areas. He indicated that it was important to note, and that the Council be aware, that the City will stand behind the debts and the bondholders will be paid on October lst. He noted the new financing team which has been assembled to address the current financial position. He detailed the team being Rod Gunn & Associates Incorporated; Jones, Hall, Hill & White; Harper & Burns; Chilton & O'Conner, Inc.; Fulbright & Jaworski; McFarlin & Anderson; and detailed the qualifications of each. Mr. Gunn indicated that the team will be working with developers to get the information needed for disclosure requirements; doing a market absorption Study for the City as a forecast of the demand within each district; and work on a solution for the pool. He explained that each of the five districts within the pool is unique and has its own unique problems; which must be solved on a district by district basis to solve the total problems. He explained that moving forward on one solution would not be appropriate because of the magnitude of the pool. He recommended that the team start to dismantle the pool, working on each district separately to detemune the best solution. He indicated that as each solution is developed and ready for implementation they will be brought to the Council. He suggested that the first district to be addressed would be CFD 88-3 as it will move the most quickly, probably within the next 90 days. He indicated that in the long term it would take approximately the nea~t 12 months to attack the entire pool. He further indicated that he was optimistic at this point, but there are no guarantees, as much of the solution will be dependent on third party reactions. He commented that there is presently the advantage that the market is starting to turn azound, and noted that last year he could not have been so optimistic. PAGE TWO - JOINT 5PECIAL MEETING MINUTES - SEPTEMBER 12, 1996 City Manager Molendyk noted that this was intended as an over view of the team and where the work will begin. 2. Authorization of Loan/Pool Bond Payments - Amendment Resolutions Re@ardinp JPA Members - Resolution Nos. 96-53. Resolution No. RDA 96-8. (F:126.5) City Manager Molendyk explained that based on the previous discussion, this item is for authorization to loan funds to the bond pool. MOVED BY BRIlVLEY, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NOS. 96-53 AND RDA 96-8. RESOLUTION NO. 96-53 A RESOLUTION OF THE CTTY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING AND DIRECTING THE EXECUTION OF A FIIiST AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT TO PERMIT ADVANCES TO THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY, AND PROVIDING OTHER MATTERS PROPERLY RELATING THERET0. RESOLUTION NO. RDA 96-8 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CPTI' OF LAKE ELSINORE AUTHORIZING AND DIItECTING THE EXECUTION OF A FIIiST AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT AUTHORIZING AND DII2ECTING AN ADVANCE PURSUANT TO SUCH AMENDMENT TO THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY, AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO. 3. Discussion of City Budaet/Le islation. (F30.1)(X:96.1) City Manager Molendyk noted prior discussions regazding Proposition 218 and noted that it further impacts the financial situation. He explained attempts to keep a balanced budget and the potential need to cut city services. He explained the intent of'l18 to change the assessments and fees which relate to property and the need for a vote of the public to assess them. He noted that one problem administratively is that if it passes, it would be necessary to request consideration on streets, parks, lights, etc., most likely the following November. He explained the concern for cash flow in the interim, and the need to make adjustments mid-year to wait for the vote of the public. He indicated that the legislation would eliminate $1.7 miilion which covers streets, beaches, pazks, etc. He noted the need for a new definition of streets which will be discussed in the near future. He noted that it would also be necessary to come back and work with the Council regazding the costs to maintain parks and ball field lighting. He indicated that there will be a need for a special election or vote in November, 1997. He indicated that until a new revenue stream can be identified the facilities would be shut down 7uly 1, 1997, due to the ongoing liability of keeping them open. He noted that there is presently limited understanding of the impacts of Proposition 218 within the Community: He stressed that the hard decisions will need to be made following its passage. He clarified the current process for setting assessments and fees and the changes required by the bill. He explained the vote spread which is allocated by property ownership, and noted that the one with the most property gets more votes. He further noted that in this community it could mean that an assessment could fail upon the vote of four major developers, as the large land owner could control the vote. He advised that the Council intends to be available to local service organizations to address this issue as the election approaches. He reiterated that changes would probably PAGE THREE - JOINT SPECIAL MEETING MINUTES - SEPTEMBER 12, 1996 need to occur within 30 days of the outcome of the election. 4. Adoption of 1995-96 Redevelopment Agencv Bud~et. (F:30.2) Administrative Services Director Boone noted that this adoption is basically housekeeping for inclusion in the financial report, and mirrors the actual activity of 1995-96. MOVED BY BRINLEY, 5ECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE 1995-96 REDEVELOPMENT AGENCY BUDGET AS PRESENTED. ADJOURNMENT The Special City CounciURedevelopment Agency Meeting was adjourned at 11:58 p.m. ~~~/ VIN W. P , MAYOR CITY OF LAKE ELSINORE ATTEST: ~`!`~'v~~l~~L7~ VICHI KASAD, CITY CLERK/ CLERK OF THE BOARD/ CLERK OF THE AUTHORITY