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HomeMy WebLinkAboutMinutes 1993-02-17 Mayor Roberta Cerri Teglia Council: Jack Drago _,, Joseph A. Femekes John R. Penna Robert Yee MINUTES City Council ,. Municipal Services Building. Community Room February 17, 1993 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 17th day of February, 1993 at 7:00 p.m., in the City Council Conference Room, City Hall, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: 2. 3. 4. Mid-Year Budget Review. 1993-94 Budget Policy Direction. Review of Service Levels. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotiations and litigation. Dated: February 12, 1993 City Clerk City of South San Francisco CALL TO ORDER: ROLL CALL: AG_E_NDA (Cassette No. 1) PLEDGE OF ALLEGIANCE: AGENDA REVIEW ACTION TAKEN 7:11 p.m. Mayor Teglia presiding. Council Present: Drago, Fernekes, Yee, and Teglia. Council Absent: Penna. The Pledge was recited. AGENDA REVIEW Former City Manager Armas stated that there were no changes to the agenda. 2/17/93 Page 1 Mid-Year Budget Review. 1993-94 Budget Policy Direction. Review of Service Levels. 2/17/93 Page 2 Finance Director Margolis gave a very detailed report: net loss for 1991-92 was $770,002, about $1,600,000 better than goal established mid-year; projected decrease in revenues of $400,000 due to the budget not being amended; loss in property tax of $721,000 due to State action; vehicle license fee payments have not been seen from the State; the State imposed an additional property tax reduction of $1.65 per capita on a one-time basis; overall proper- ty tax revenue is anticipated to be $850,000 below budget; sales tax revenue anticipated to produce $200,000 more than budgeted; expenditures project- ed to be about $1,000,000 below the adopted budget at year end due to department savings; actual sav- ings rate is about 7% of budget; $1,053,000 decline in fund balance; etc. Discussion followed: in which departments had the savings occurred; staff to develop figures on indi- vidual department savings; the State not honoring its obligations; that a break on the booking fees had not materialized; to send a strongly worded letter to our representatives in Sacramento on the missing reve- nue; growth in sales tax; reimbursement for the 101 study; T.O.T. revenue increase; increase in building fees in rehab rather than in new construction; why the Airport money for the study was being shown as income; that the east of 101 revenue was offset by expenditures; that the agreement with the Airport Director had been modified to reflect monthly reim- bursements rather than on certification of the EIR; service levels by department in reference to those required by operation of law and those discretionary; request that City Clerk and City Treasurer submit service levels; Council must decide what services it will provide to the public with the reduced revenue; keeping reserves as a safeguard against future State hits; the City had to cut $1.5 million; how service cuts would be made; positions in support capacity would be considered; putting aside 7% in reserves; whether the City could go for a bond if it runs out of money, etc. Further discussion followed: major disasters through earthquakes; that some reserves had been used for the downturn in the economy; Councilman Yee had mentioned that those departments making an effort to save money should be entitled to an incentive, wherein they can use pan of the savings for something they need; language should be written in a policy to effect incentives, etc. .. 069 kerns 1-3 - Continued. ~'ouncilman Penna Arrived at the Meeting: 2/17/93 Page 3 Councilman Penna arrived at the meeting at 7:52 p.m. Further discussion followed: options on potential reductions in services; Item No. 4 on page 4 should read 'There will be no reduction in sworn personnel that provide emergency services to the public, etc. ~; that the $1.5 million State hit does not include what the Governor might do, and that may be another million; the Governor's proposal is to take $1.5 million away yearly - which would amount to $3 million for this City which could not be absorbed in cuts; to phase $1.5 million in revenue cuts over two years; Councilmembers Drago and Teglia supported the Manager's guidelines for $1.5 million; Council- man Yee wanted to deal with the $3 million, etc. Consensus of Council - To develop a sixth principle on incentives; deal with a $3 million deficit; accept four principles with the added language on Item No. 4. Consensus of Council on new revenue alternatives - agreed on development fees; paramedic fees; major- ity vote (Drago voted no) on discharge fees; staff to explore miscellaneous, business license, property transfer tax, and a water franchise fee. Discussion followed: Vice Mayor Fernekes felt the Council should deal with the $3 million figure; Councilman Penna did not want to see any salary increases because he felt there was too much inefficiency, and increases were not deserved; he felt that our police made more than the police in San Francisco; he wanted to look at the services being provided and their direct costs; San Francisco police were not comparable because they did not have collective bargaining, and their benefits are wholly lacking; Councilman Penna felt that City workers' salaries and benefits were over paid com- pared with private industry; previous State bailout monies; the State taking property tax revenue from cities; that public safely represented 50% of the budget; that people laid off should be allowed to assume open positions as long as they meet the minimum qualifications; entitlement had to be dis- cussed in Closed Session; incentives to make people retire and create positions; $3 million dollars equals sixty positions; possibly borrowing from the re- .--ttems 1-3 - Continued. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotia- tions and litigation. RECALL TO ORDER: ADJOURNMENT: serves while anticipating revenues at a later date; reserves had to be maintained for contingencies such as earthquakes; to utilize $1.5 million of the $2.5 million to contend with future State hits and have a balanced budget for 1993-94; expenditure projec- tions; deficit spending; that the $2.3 million was a one time revenue; people objected to spending mon- ey on Orange Park in face of scaling back services; opportunity to purchase school surplus land; City Manager to lay out alternatives on a $1d5 million reduction; service levels; how the budget informa-' tion was going to be disseminated to employees; using budget bulletins; that the problem was a $3 million deficit, etc. Council adjourned to a Closed Session at 10:00 p.m. for litigation pursuant to GC 54956.9(a) on Edward Mulgrew; ami property negotiations pursuant to GC 54956.8 on school surplus property. Mayor Teglia recalled the meeting to order at 10:50 p.m., all Council present, no action was taken. MIS Fernekes/Drago - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 10:50 p.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk City of South San Francisco APPROVED. City of South San Francisco The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- tions, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 2/17/93 Page 4