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HomeMy WebLinkAbout2012/06/06 - Minutes - Special June 6, 2012 CITY OF RANCHO CUCAMONGA CITY COUNCIL MINUTES FIRE PROTECTION DISTRICT MINUTES SPECIAL MEETING A. CALL TO ORDER A special meeting of the Rancho Cucamonga City Council and Fire Protection District was held on Wednesday, June 6, 2012, in the Tri-Communities Room at the Civic Center located at 10500 Civic Center Drive, Rancho Cucamonga, California. Mayor/President L. Dennis Michael called the meeting to order at 3:00 p.m. Present were Council Members/Board Members: Bill Alexander, Chuck Buquet, Mayor Pro Tem/Vice President Sam Spagnolo and Mayor/President L. Dennis Michael. Council/Board Member Williams arrived at 3:15 p.m. Also present were: John Gillison, City Manager; Linda Daniels, Assistant City Manager; Lori Sassoon, Deputy City Manager/Administrative Services; Tamara Layne, Finance Director; Jeff Bloom, Interim Planning Director; Mark Steuer, Director of Engineering Services; Nettie Nielson, Community Services Director; Trang Huynh, Building and Safety Services Director; Chris Paxton, Human Resources Director; Robert Karatsu, Library Director; Chief Mike Bell, Rancho Cucamonga Fire Protection District; Veronica Fincher, Animal Services Director; Jim Frost, City Treasurer and Debra L. McNay, Assistant City Clerk/Records Manager. B. PUBLIC COMMUNICATIONS No communication was made from the public. • ice♦+e C. ITEMS OF DISCUSSION C1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCAL YEAR 2012/13 A staff report was presented by John Gillison, City Manager. Mr. Gillison addressed the economic downturn and the City's current situation and spoke about sales tax revenue versus the unemployment rate. He indicated that the previous "soft landing" approach has been negated by the State's elimination of Redevelopment. The General Fund has been faced with a $4.2 million deficit and is now operating with essentially the same General Fund revenue as in FY 2006/07. Meanwhile, he noted that various reoccurring costs continue to rise. The principal challenges for FY 2012/13 were discussed, including adjustment to the loss of Redevelopment programs, projects, services and personnel; the need to gradually wind down the business of the former Agency and the proactive adjustment of employee salaries and benefits to offset the rising PERS pension costs. Other challenges include the need to offset rising utility and fuel costs with increased efficiencies, cost savings or other new revenues (as necessary) and the goal to balance the City's operating budget without the use of reserves. Charts were presented showing how $2,574,150 in reserve interest has been used to balance the operating budget over the last three years. Proposed Budgets for Fiscal Year 2012/13- Fire Protection District, City Council Minutes Special Meeting -June 6, 2012 - Page 1 of 3 Mr. Gillison addressed the FY 2012/13 budget goals, including the goal to seek through litigation the restoration of Vehicle License Fee revenue and Property Tax Administration fees; the goal to end the FY 2012/13 with savings that will go to the reserves and the goal to set aside $500,000 to $1,000,000 each year for placement into the reserves. Mr. Gillison commented on the FY 2012/13 budget changes, including the staffing reduction and loss of programs as a result of the elimination of Redevelopment. Mr. Gillison also noted that all of the labor agreements are nearly complete and outlined the reduction of furlough hours, the restructuring or option to restructure future medical benefits, the requirement for new and existing employees to share in the cost of their pensions, the reduced pension benefits for new hires, the continued holiday closure of City facilities and the voluntary 10% reduction in Council compensation and the elimination of PIERS benefits for future elected officials. Lastly, he outlined the facility operation and program reductions proposed for FY 2012/13 and noted four programs are proposed to be eliminated entirely (nearly all economic development services and tourism and marketing services previously provided by the former Redevelopment Agency, the elimination of the First Time Homebuyer Program and the elimination of the Holiday Banner program. The City's proposed Operating Budget of $63,340,830, the Library's proposed Operating Budget of $3,924,980, the Fire District's Operating Budget of $32,800,490 and the Special Funds Operating Budget of $72,320,230 were discussed. Also discussed were the key revenues for each of these funds as well as the changes in the operating funds and these revenue sources over the years. Mr. Gillison noted that the City is seeing the first sustained signs that the declines of the past few years has leveled off. There are some small areas of revenue growth and there are certain unavoidable fixed operating costs that are increasing. He noted that offsets are being proposed to current cost increases (i.e., employee pension changes, fuel and water efficiencies). Staff reductions are currently at 107.5 FTE since 2007. In response to Council Member Buquet, Mr. Gillison confirmed that this number included the previously reported 76 FTE positions. Mr. Gillison presented the proposed FY 2012/2013 budget. The City General Fund is recommended to be $63,340,830, which represents a 0.38% increase from Fiscal Year 2011/2012. The budget provides for a continuation of essential public services, does not use the reserves and adjusts to the loss of the Redevelopment Agency. The Fire District operating fund was discussed, which is recommended to be $26,699,390. This represents a 3.5% increase over Fiscal Year 2011/2012. This budget does not use the reserves and incorporates the fixed operating cost increases and redistributes operating expenses in various areas. Mr. Gillison noted that there is no increase in the CFD assessments for the first time the CFDs were created. The Library operating budget was discussed and is recommended to be $3,924,980. This represents a 1.2% reduction from Fiscal Year 2011/2012. This budget uses $86,650 of reserves and has absorbed the loss of $180,000 in State funding. It was noted that certain vacancies have been maintained and that the numerous grant programs has helped to shore-up services. Mr. Gillison addressed Special District revenues, including those in Community Facilities Districts, Landscape Maintenance Districts and Street Lighting Districts. Revenues continue to fluctuate but appear to be flattening out and in some cases are showing improvement. As some Districts do not have an index to adjust for rising costs, he noted that either an adjustment to the landscape maintenance level or Proposition 218 elections will be needed in the future. Mr. Gillison noted the need for each District to remain self-sufficient. The Capital Improvement Program was discussed, with Mr. Gillson noting that these funds are restricted and can not be used for general operating costs. The capital projects for Fiscal Year 2012/2013 include completion of Hellman Avenue storm drain to the Cucamonga Creek Channel, the pavement rehabilitation at various locations, the completion of the City Maintenance Yard Expansion and Household Hazardous Waste facility, the undergrounding of utilities on Arrow Route and Base Line Road, the Central Park pavilion as well as hardscape and landscape improvements, various park improvements (Golden Oak and Mountain View Parks), the construction of Southwest Cucamonga Park, the Fire Training Facility design and several pedestrian connections. Proposed Budgets for Fiscal Year 2012/13- Fire Protection District, City Council Minutes Special Meeting-June 6, 2012- Page 2 of 3 In closing, Mr. Gillison noted that the City remains committed to maintaining its 30+ year tradition of fiscal stability and providing the highest quality services within budgetary constraints. The fiscal discipline that the City Council has maintained has enabled a much better outcome for Rancho Cucamonga than in many other places, even with the loss of the sixth largest redevelopment agency in California. He noted that the budgets presented, while still lean, are balanced within the resources available to the City, without the use of operational reserves. However, he noted that this state of balance is pending any further State impacts to local revenues. Council Member Alexander indicated that he would set up a meeting with the City Manager in order to discuss his concerns with some of the proposed reductions, specifically regarding programs for the seniors and youth sports. He noted that the people at the lowest end of the economic scale always seem to be affected the most. In response to Council Member Williams, Mr. Gillison noted that the rest of the City Council would receive an outline of the concerns and his responses at the next workshop. Council Member Williams inquired about the funding for the crossing guards and wondered if more funding could be cut. In response, Mr. Gillison noted the goal to gradually decrease the amount of funding and indicated that this is being discussed with the School Districts. Council Member Buquet stressed the need to communicate the service level changes to the community. He inquired on the outreach being done to affected agencies (such as the Chamber of Commerce and the School Districts). Lastly, Council Member Buquet expressed a concern with the Landscape Maintenance Districts and indicated that a plan should be prepared and steps should be taken to eliminate turf in these Districts. In response, Mr. Gillison noted that discussion is ongoing with affected agencies. Also, staff is exploring ways in which to reduce the amount of turf to be maintained in the Landscape Maintenance Districts. Mayor Pro Tern Spagnolo noted that he did not want to see any cuts. Regarding Council Member Alexander's comments, Mayor Pro Tern Spagnolo wondered what the Council Member would like to propose instead. Mayor Pro Tern Spagnolo inquired if the number of FTEs included the Police and Fire Departments. In response, Mr. Gillison indicated that the number did not include these Departments, noting that 10 FTE were affected in the Police Department and 3 FTE were eliminated in the Fire Department. Mayor Michael requested a copy of the PowerPoint presentation. He inquired about the Mobile Home Assistance Program and noted that some of the programs funded by the Redevelopment Agency have been absorbed by the General Fund. Mayor Michael pointed out that the loss of personnel puts a strain on the existing staff to provide services. He thanked the employees for their contribution to the City. Mayor Michael noted that the City Council wants to be a part of the solution. Future elected officials will not participate in PERS. He expressed a concern in the increase to the County's administrative fee and appreciated the use of electric/CNG vehicles in the City fleet. He noted that a second budget workshop will be needed, noting that it has been scheduled for June 14, 2012. In the meantime, Council Member Buquet noted that the City Council members could speak with the City Manager with any budget questions. E. ADJOURNMENT The meeting adjourned at 4:06 p.m. Re t ectfully submitted, vL De ra L. McKay, MMC Assistant City Clerk/Records Manager Approved: June 20, 2012 Proposed Budgets for Fiscal Year 2012/13- Fire Protection District, City Council Minutes Special Meeting-June 6, 2012 - Page 3 of 3