HomeMy WebLinkAbout05-23-1995 City Council Minutes MINUTES
SARATOGA CITY COUNCIL
TIME: Tuesday, May 23, 1995 - 7:00 p.m.
PLACE: City Hall Administration Meeting Room, 13777 Fruitvale
Ave.
TYPE: Adjourned Regular Meeting/Joint Meeting with Finance
Advisory Committee
1. Roll Call
The meeting was called to order at 7:00 p.m~ Councilmembers
Jacobs, Moran, Tucker, Wolfe and Mayor Burger were present.
Staff Present: City Manager Peacock
Finance Advisory Committee Members Present: Hahn, Koen, Low,
Ousley, Van Hoesen
2. RepOrt of City Clerk on Posting of Agenda
Pursuant to Government Code 54954.2, the agenda for this meeting
was properly posted on May 19. The notice of adjournment from the
May 17 Council meeting was properly posted on May 18.
3. Joint Meeting with Finance Advisory Committee for 1995-97
Budget and Capital Improvement Program Preview Workshop
A. staff Budget Overview Presentation
The City Manager presented anoverview of the budget, indicating
that the draft budget shows a decrease in the General Fund balance
of $76,000 in Fiscal 1995-96 and $25,000 in Fiscal 1996-97 with a
projected increase of $291,000 in Fiscal 1997-98 and a decrease of
$61,000 in Fiscal 1998-99. He indicated that in looking at the
next two years revenues available for operations versus the
projected costs of operations leaves only $157,000 for capital
projects in Fiscal 1995-96 and $40,000 in Fiscal 1996-97, from the
General Fund. General Fund revenues for the next two fiscal years
are projected at $7,447,137 and $7,751,521 respectively, and Total
Revenues from all sources for the next two years are projected to
total $10,646,327 and $10,978,341.
Total Expenditures are proposed at $10,824,183 and $10,799,523
respectively. He indicated that when the Contingency Reserve
numbers are included, the General Fund becomes out of balance by
some $287,000 for Fiscal 1995-96 and by some $241,000 for Fiscal
1996-97. He expressed concern that further cuts to the proposed
budget are necessary if the current general fund reserve
requirement is to be maintained. This would require $40,000 in
cuts for Fiscal 1995-96 and $133,000 in cuts for Fiscal 1996-97.
B. Finance Committee Overview Presentation
The members of the Committee indicated that over the past several
years General Fund revenue had been overstated. Since Fiscal 1990
the General Fund Balance has gone from about $6 million to about $2
million. The Committee asked the City Council to recognize that the
draft budget depletes the General Fund by some $327,000, that the
budget does not appear to be zero based, that staffing costs equal
50% of General Fund revenue, that the staff costs to work on
capital project items needs to be recognized in the project costs,
that there is significant revenue and expense risk from a number of
factors, including the state of the economy and the possibility of
further adverse state government actions, there needs to be a
better explanation of the major fluctuations in the budget and that
the budget "cuts" aren't necessarily cuts, they are just smaller
increases.
The Committee agreed with the City Manager's comment that 1995 is
a watershed year. It is time to begin to rebuild Saratoga's
financial health. A General Fund Reserve Requirement of $2 million
is recommended instead of the current 25% of General Fund
Appropriations approach, that there should be both a Best Case and
Worst Case budget scenario developed. The City Council needs to
City Courtoil Minutes 2 May 23,
1995
approach this important task by p~rioritizing city services.
The Committee indicated that there are revenue risks in the draft
budget which should be recognized.. These include possible changes
in property assessments, general economic conditions, state budget
impacts, and a slowdown in construction activity. It was
recommended that the revenue plan be reduced by $200,000 for Fiscal
1995-96 and $300,000 for Fiscal 1996-97.
The Committee noted there are expenditures risks as well. These
could include the need to fund the new sheriff's station at a cost
of $500,000, that needed additional appropriations couldexCeed the
contingency fund, there could be unanticipated state mandates, the
possible adverse impact of federal funding cuts in the HCDA
program, a shortfall in community services revenue, and possible
flood control and stormwater management fluctuations as occurred
from thewinter storms this year, and pending contract negotiations.
with the SEA.
To counter these possibilities the Committee recommends that the
City Council should consider that there is a $487,000 deficit to
the General Fund for Fiscal 1995-96 and a $560,000 deficit to the
General Fund for Fiscal 1996-97. It further recommended that the
one time money from the Greenbriar project be set aside.
The Committee recommended that service priority be defined as what
services are basic and which are optional. Basic services to
include public safety, infrastructure maintenance, waste
management, planning and zoning, and permits and inspections.
Optional services to include recreation, senior assistance, youth
program, community events, cable TV and library assistance. For
each optional program the following questions should be asked:
-should the city be in this business?
-are their alternative sources for the same service?
-should the city require self-funding?
The Committee suggested that the City Council engage in an effort
to rethink government. There should be adequate financial
processes, services should be privatized where cost benefits can be
achieved, examine city management of the land use, construction
design and zoning functions, and develop a long range plan which
balances services with revenue sources.
Following the presentations the City Council recessed at 9:10 PM.
The City Council reconvened at 9:25 PM with all members present.
Mayor Burger acknowledged letters from G. W. Kreamer and Kevin
Skelly, Principal, Saratoga High School. Dr. Skelly reviewed his
letter asking for the City Council to provide a total of $30,000
for a new all weather track at the high school. Re asks the City
to try to find a way to help fund this amount to help repay an
interest from loan over the next several years.
C. Staff Budget Detail Presentation
City Council agreed that it would be unnecessary to have the
detailed presentation at this time.
D. Council Discussion on Changes to Budget to Be Made Prior
to the JUne 7th Public Rearing IncludingConsideration
of the Recreation Director's Request to Amend the
Salaz7 Structure for Part-time Recreation Workers
(Continued from the May 17th City Council Meeting)
The City Council reviewed the presentations and instructed the City
Manager to bring the budget intc~ balance as suggested by the
Finance Advisory Committee by closing the gap between revenues and
expenditures in the amount of $4S7,000 for Fiscal 1996 and $560,000
for Fiscal 1997. These proposals to be presented at the budget
hearing of June 7, 1995.
City Council Minutes 3 May 23,
1995
It was moved by Moran, seconded byJacobs, and passed 5-0 to table
the matter of Part-time Recreation workers salaries to the meeting
of June 21, 1995.
4. Self-Evaluation of the May 17th Meeting
City Council members thought the meeting went well.
5. Agency Assignment Reports
Councilmember Wolfe reported on the Hakone Foundation and indicated
a need to talk to the incoming and outgoing Presidents about the
status of the Foundation's operations. He also updated the City
Council on the latest developments of the Business Development
Council, noting the Farmers Market is scheduled to start on June
10th.
Councilmember Moran reported on the Emergency Council, Sister City,
and the Traffic Authority Policy Advisory Board, noting she is the
new Vice Chair.
Councilmember Tucker reported on the freeway noise committee, that
the soundwall retrofit effort is being dropped byDr. Grebenkemper.
She reported that members of ABAG ON-LINE can now connect to the
INTERNET through that service. She also mentioned the Alquist
regional gas tax bill and suggested that the City should take a
position in opposition, Council agree. ABAG's LG&O Committee is
considering the Benninghoven proposal for county/city compacts as
the basis for local government reorganization and she needs to know
the position of the City Council. The City Council asks the City
Manager to prepare a one page s-m~ary of the proposal for City
Council to review at an adjourned session in June. Councilmember
Tucker also inquired as to whether the City should consider
approaching Monte Sereno regarding changing its Sphere of Influence
so the City could annex the La Hacienda area since Monte Sereno
does not want any commercial development in its city. Council
agreed that she should approach Monte Sereno to gauge its reaction.
Mayor Burger reported on the work of the Design Review Committee
and that she and Councilmember Wolfe had been visiting all the
merchants in the Village and have gotten to the Buy and Save area
which will be their next stop.
6. AdjOurnment
The city council adjourned at 11:15 PM to 10:00AM on June 3, 1995,
for the purpose of interviewing applicants to the City's Youth
Commission, in the Administrative Conference Room at City Mall.
Respectfully submitted,
City Manager