HomeMy WebLinkAbout2011/05/26 - Minutes - SpecialMay 26, 2011
CITY OF RANCHO CUCAMONGA
CITY COUNCIL MINUTES
REDEVELOPMENT AGENCY MINUTES
FIRE PROTECTION DISTRICT MINUTES
SPECIAL MEETING
A. CALL TO ORDER
A special meeting of the Rancho Cucamonga City Council, Redevelopment Agency and Fire Protection District
was held on Thursday, May 26, 2011, in the Tri-Communities Room at the Civic Center located at 10500 Civic
Center Drive, Rancho Cucamonga, California. MayorlChairman/President L. Dennis Michael called the
meeting to order at 5:00 p.m.
Present were Council Members/Agency MemberslBoard Members: Bill Alexander, Chuck Buquet, Diane
Williams, Mayor Pro TemNice Chairman/Vice President Sam Spagnolo and Mayor/Chairman/President L.
Dennis Michael.
Also present were: Jack Lam, City Manager/Executive Director; John Gillison, Assistant City Manager; Linda
Daniels, Deputy City Manager/Community and Economic Development; Tamara Layne, Finance Director;
James Troyer, Planning Director; Mark Steuer, Director of Engineering Services; Kevin McArdle, Community
Services Director; Trang Huynh, Building and Safety Services Director; Robert Karatsu, Library Director; Chief
Joe Cusimano, Rancho Cucamonga Police Department; Chief Mike Bell, Rancho Cucamonga Fire Protection
District; Joe Pulcinella, Animal Services Director; Jim Frost, City Treasurer and Debra L. McKay, Assistant City
Clerk/Records Manager.
......
B. PUBLIC COMMUNICATIONS
No communication was made from the public.
...+._
C. ITEMS OF DISCUSSION
C1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCAL
YEAR 2011/12
A staff report was presented by Jack Lam, City ManagerlExecutive Director. Mr. Lam outlined the fiscal
challenges inherent in the national and state recession and summarized how the organization had adapted to
the challenges though budget reductions and cost containment strategies. He presented a summary of the
City General Fund operating budget as well as key revenue sources. Charts were presented showing how
revenue sources have declined in the City General Fund. The Fire District and Library operating budgets and
their revenue sources were also discussed.
Mr. Lam addressed the budget strategy during these fiscal challenges and the benefits of a "soft landing"
approach. In response to the economic downturn, he outlined numerous actions that have been taken to
achieve this "soft landing", including strategic cost reduction measures, attrition management, consolidation of
various functions, shifting eligible staffing to capital projects and other grant funded programs and using the
American Recovery and Reinvestment Act funding as well as other funding opportunities. He noted that staff
has taken on significant additional burdens even as the City's staffing resources have shrunk. He reported that
staff has been reduced by 76.1 full time positions since 2007.
Proposed Budgets for Fiscal Year 2011112
Redevelopment Agency, Fire Protection District, City Council Minutes
May 26, 2011 -Page 1 of 3
Mr. Lam indicated that the "soft landing" has been achieved in the Fiscal Year 2011/2012 budget. He noted
that the revenue decline has stabilized and the budget reductions and budget adjustments are now in
alignment with the bottom of the revenue curve. Also, Mr. Lam stated that while revenue is growing in some
areas, the revenue growth is being accompanied by a rise in the cost of goods, supplies, and services. The
Fiscal Year 2011/2012 operating budget will utilize no reserve funds, thus achieving the City Council's goal for
this budget. He noted that economists are predicting a period of several years near the bottom of the fiscal
"trough" before actual growth is seen.
Mr. Lam presented a budget analysis of the Fiscal Year 2011/2012 budget. The City General Fund is
recommended to be $63,507,030, which represents a 1% increase from Fiscal Year 2010/2011 and an 8.8%
reduction from Fiscal Year 2008/2009. The budget provides for a continuation of essential public services and
absorbs $878,560 of fixed operating cost increases. The only new program addition is to absorb the basic
Senior Transportation Program. Mr. Lam stressed that there was no OPEB unfunded liability in this budget.
The Fire District operating fund was discussed, which is recommended to be $25,807,800. This represents a
3.4% increase over Fiscal Year 201012011. This budget absorbs $676,740 of fixed operating cost increases
and reflects a full year of the fire inspection program. Mr. Lam indicated that the budget maintains the attritted
positions and noted that there was no OPEB unfunded liability in the Fire District's operating budget.
The Library operating budget was discussed and is recommended to be $3,974,210. This represents a 1.8%
reduction from Fiscal Year 2010/2011 and an 11.5% reduction from Fiscal Year 2008/2009. The Library
budget reflects the possible loss of all State Public Library funding. Mr. Lam noted that attrition management
and successful grant programs have helped to maintain service levels. The book budget was reduced, but the
hours of operation remain the same. Lastly, he noted that there was no OPEB unfunded liability in the Library's
budget.
Mr. Lam addressed Special District revenues, including those in Community Facilities Districts, Landscape
Maintenance Districts and Street Lighting Districts. He noted that the delinquencies have appeared to have
peaked. Mr. Lam indicated that the Proposition 218 process will be started for Landscape Maintenance District
2 and expected that the assessment for Landscape Maintenance District 1 will be revisited in Fiscal Year
201112012.
The Community Development Block Grant funding was discussed. While a 15% decrease was initially
expected, Mr. Lam indicated that the decrease will actually be 16.7%. He outlined the anticipated impact to the
Fiscal Year 201112012 budget. This item has been scheduled for the June 1, 2011 Council meeting. Mr. Lam
confirmed that all of the recipients have been notified of the decrease in funding.
The Capital Improvement Program was discussed, with Mr. Lam stating that these funds are restricted and
can not be used for general operating costs. The capital projects for Fiscal Year 2011/2012 include the Base
Line Road at I-15 interchange, master planned storm drains on Archibald and Lemon Avenues and a median
island retrofit from Haven Avenue from 4'" to 19`" streets.
Lastly, Mr. Lam addressed the Redevelopment Agency. He noted that the State took away $32 million in
Fiscal Year 2009/2010 and more than $6 million in Fiscal Year 2010/2011. The Agency opposes Governor
Brown's proposal to eliminate all Redevelopment Agencies and will continue to work on infrastructure and
programs which attract and maintain businesses and result in job creation.
In closing, Mr. Lam noted that the Fiscal Year 201112012 budget reflects the current realities of the Great
Recession and also the priorities and goals of the City Council. After three years of cost cutting, this budget
will achieve the goal of a "soft landing" and does not include the use of reserves. Mr. Lam expected that the
City will remain in a fiscal "trough" for several years. Key factors to monitor include: Any negative State budget
action(s) that further divert local revenue, revenue performance for the remainder of the calendar year and the
outcome of the Countylpublic labor negotiations.
Mr. Lam indicated that the City has been given an AA credit rating and still maintains a $13,745,456 reserve.
The budget preserves basic City services and continues the priority on public safety. Mr. Lam indicated that
the City and the Fire District have no unfunded OPEB liability and have eliminated any reliance on reserves.
Also, the City and the Fire District have implemented pension reform to help ensure long-term fiscal stability.
Proposed Budgets for Fiscal Year 2011 /12
Redevelopment Agency, Fire Protection District, City Council Minutes
May 26, 2011 -Page 2 of 3
Mr. Lam stated that the downsizing, restructuring and cross utilization of staff have enabled the organization to
adapt to the new reality. During this Fiscal Year, he noted that the City Manager's Office will be working with
all Departments to develop a comprehensive succession plan as well as an organizational restructuring plan.
He thanked all of the employees who remain committed to providing the community with the best services
possible utilizing the resources available during these difficult times.
Mayor Pro Tem Spagnolo thanked all of the employees for their contributions in making these budgets work. It
is hard to believe that so many positions have been attritted. He appreciated the very soft landing.
Council Member Buquet noted that the City was a shining example of how fiscal planning should occur. He
noted the many communities who were unable to manage their expenses. The Council Member appreciated
the conservative approach taken in preparing the budgets. Regarding the succession planning and
restructuring, Council Member Buquet suggested that the 71.6 full time positions be removed from the table
and that each Department Managers focus on what was needed to meet future Departmental goals. Once the
economy recovers, Council Member Buquet suggested atwo-prong approach, noting the need to replenish the
reserve as well as to provide for the employee groups who had sacrificed during these hard economic times.
Council Member Williams noted that the implementation of Team RC was very apparent in this balanced
budget. She appreciated the fact that everyone worked to pull through the Great Recession and concurred
with the suggestions made by Council Member Buquet.
Council Member Alexander concurred with the comments that were made.
In response to Mayor Michael, Mr. Lam indicated that he would be watching for future State action and
monitoring revenue streams. Mr. Lam indicated that quarterly reports would be provided to the City Council.
Also discussed was the need to meet with every Department to address a succession plan as well as a
restructuring plan.
Mayor Michael noted that $900,000 was used last year in reserves and pointed out that this budget was
balanced even with unavoidable fixed cost increases. He applauded all Departments for their hard work and
dedication to the City.
In response to Mr. Lam, the Council Members indicated that the second budget workshop, tentatively
scheduled for June 2, 2011 was not needed. Mr. Lam indicated that a special meeting would be held on June
9, 2011 so that the budgets can be considered and adopted. This meeting was open to the public and would
be in the City Council Chambers.
Council Member Alexander indicated the need to meet with Mr. Lam to discuss personnel issues.
Council Member Buquet noted that the June 9, 2011 meeting could accommodate any needed budget
changes.
E. ADJOURNMENT
The meeting adjourned at 5:49 p.m.
Resp!?cffully submitted,
,,~ ~
Debr L. McKay, MM
Assistant City ClerklRecords Manager
Approved: June 15, 2011
Proposed Budgets for Fiscal Year 2011112
Redevelopment Agency, Fire Protection District, City Council Minutes
May 26, 2011 -Page 3 of 3