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Home My WebLink About2003 08 20 CC MIN SSS2003 08 20 CC MIN SSS(ÌìHFOCOUNCIL CHAMBER 14403 E. PACIFIC AVENUE BALDWIN PARK, CA 91706 AUGUST 20, 2003 WEDNESDAY 5:30 P.M. The CITY COUNCIL, COMMUNITY REDEVELOPMENT AGENCY and HOUSING & FINANCE AUTHORITY of the City of Baldwin Park met in SPECIAL STUDY SESSION at the above time and place. ROLL CALL Present: Councilmember/Member Marlen Garcia, David Olivas, Ricardo Pacheco, Mayor Pro- Tem/Vice-Chair Bill Van Cleave arrived 5:45 p.m.), and Mayor/Chair Manuel Lozano Also Present: Dayle Keller, Chief Executive Officer/Executive Director; Michael Karger, City Attorney/Agency Attorney; Mark Kling, Chief of Police; Jose Sanchez, Finance Director; Shafique Naiyer, Public Works Director; Meledo Picazo, Interim Community Development Director; Manny Carrillo, Recreation and Community Services Director; Maria A. Contreras, City Treasurer; Rosemary M. Ramirez, Chief Deputy City Clerk; and Kathleen Sessman, Deputy City Clerk NEW BUSINESS The City Council, Redevelopment Agency and Housing and Finance Authority adjourned to the 3rd Floor, Room 307 for the purpose of conducting a Budget Workshop for FY 2003-04. PROPOSED BUDGET WORKSHOP FY 2003-04 CONTINUED FROM JULY 17 2003) Finance Director Sanchez started by informing the Council that the state Governor signed the budget on August 9, 2003. He directed the Council's attention to the power-point presentation as follows: POTENTIAL IMPACT OF THE TRIPLE FLIP" AND OTHER STATE TAKE-A-WAYS AS FOLLOWS Approved Budget Loss in Revenue Raise State Sales Tax by Vz cent $1.8 2.0 million Re-apportionment of Proper Tax $1.8 2.0 million) ERAF) to cities $1.2 million B.P. 1990's Assumed Dollar for Dollar flip Cash Flow Requirements Unknown Property Taxes in 2 payments Interest Earning Loss Unknown Increase ERAF Take-a-way to RDA's $90,000 Current ERAF $110,000 New $200,000_ GAP Financing for VLF July October, 2003 $939,000 Prior to full fee collection 3-uear loan proposed Finance Director Sanchez further stated that no detail information or final analysis has been developed or released by the state to confirm financial impact on individual cities. The above BIB] 38044-U01 2003-U02 08-U02 20-U02 CC-U02 MIN-U02 SSS-U02 LI1-U03 FO8420-U03 FO16119-U03 DO38914-U03 C4-U03 MINUTES1-U03 2/26/2004-U04 ROBIN-U04 SPECIAL-U05 STUDY-U05 SESSION-U05 CC,-U06 CRA,-U06 HFA-U06 2003 08 20 CC MIN SSS(ÌìHFOStudy Session Minutes August 20. 2003 Page 2 is based on staff's best assumptions at this time and the information that is currently available. GENERAL FUND CASH BALANCE ANALYSIS FISCAL YEAR 2003-04 Beginning Cash Balance Balance As of July 1. 2003 $ 3,514,885 Projected Revenues for 2003-2004 $ 16,099,990 Transfers-in General Fund) $ 1,128,636 Total Revenues & Transfers-in $17,228,626 Total Projected Cash Available $20,743.511 Proposed Budget for 2003-04 $ 17,077.273 Transfers-out $ 662.000 Total Projected Expenditures $ 17.739.273 Projected Cash at June 30, 2004 $ 3.004,238 Councilmember Olivas requested that in the future, he would like to see a reserve as a reserve and that the Council establish a percentage that is designated to contingencies. RECOMMENDED RESERVE REQUIREMENTS 1-General Fund Balance Estimate at 6/30/2004 $ 3,004.238 Designated Reserve: Contingency for Lss Revenue $ 1,800.000) Based on 10% of G/F Operation Budget $17.1) Fund Other Fund Deficits Park Maintenance Assessment $ 318,400 Fleet Services $ 436.000 $ 800,000) Reserved for: $ 404,238 Subsequent Appropriations/COLA's Emergencies/Contingencies 2-Traffic Safety Fund Estimated at 6/30/2004 $ 1,022,1254 Reserve Designated for Public Safety Program and Homeland Security Director Sanchez referred to page 7 of the Chief Executive Officer's message as follows: The estimated General Fund Cash Balance for June 30, 2004 is 3.004,238. In order to provide for the uncertainty in the economy and potential take-a-ways by the State in future, years, staff recommends that a contingency be established in the General Fund as a designated reserve for this purpose. Staff recommends this amount represent 10% of the BIB] 38044-U01 2003-U02 08-U02 20-U02 CC-U02 MIN-U02 SSS-U02 LI1-U03 FO8420-U03 FO16119-U03 DO38914-U03 C4-U03 MINUTES1-U03 2/26/2004-U04 ROBIN-U04 SPECIAL-U05 STUDY-U05 SESSION-U05 CC,-U06 CRA,-U06 HFA-U06 2003 08 20 CC MIN SSS(ÌìHFOStudy Session Minutes August 20, 2003 PageS General Fund operating budget, which is approximately $1.8 million. Although staff believes this contingency would assist in the event of lost revenues, it would not be proposed ass the first or only remedy especially if the loss is likely to continue from year to year. It would serve as a cash flow reserve to allow Council to make well though out service level reductions with the lease impact on the community. Staff also recommends that funds be designated to correct the deficits in the Park Maintenance Assessment District of $318,400 and the Internal Service Fund for Fleet Services of $463.000. These amounts total $781.400 and it is recommended that $800,000 be set-a-side as a designated reserve in the General Fund until the deficits are cured. In addition, staff recommends that the remaining $400,000 be designated for subsequent years appropriations to include cost-of-living adjustments, required unforeseen expenditures, emergencies and other contingencies. Outside of the General Fund, staff is recommending a public safety and homeland security reserve in the Traffic Safety Fund 110), in the estimated amount of $1.0 million. These monies have been designated to ensure the continued funding of the Police Department operations and other public safety programs. These would include the increasing retirement obligations anticipated as a result of the 3% 50 retirement plan to become effective June 30,2004. GENERAL FUND RESERVE AND EXPENDITURE PROJECTIONS INCLUDING ESTIMATED BUDGET PACKAGE APPROVED BY SENATE AND ASSEMBLY Projected FY03 Proposed FY04 FY05 FY06 RevenuesProjected State Loss)/Gain $16,937,637 $17,228,626($939,400) $18,395,485 $19,097,349$939.400 Net RevenuesExpenditures Personnel Operations $16,937,637$11,848,568 $ 4,272,959 $16,289,226$12,974,743 $ 4.234.005 $18,395,485$13,913,385 $ 4,319,695 $20,036,749$14,331,405 $ 4,406,089 Total Surplus/Deficit Cash Balance $16,121,527 $ 816,110 $ 3,514,885 $17,209,738 $920,512) $ 2,084,373 $18,233,680 $ 161,805 $ 1,736,178 $18,737,494 $ 1,299,256 $ 2,525,433 SUPPLEMENTAL REQUESTS The Council requested to proceed with adoption of the budget and to review the supplemental requests at the September 17, 2003 Council meeting. BIB] 38044-U01 2003-U02 08-U02 20-U02 CC-U02 MIN-U02 SSS-U02 LI1-U03 FO8420-U03 FO16119-U03 DO38914-U03 C4-U03 MINUTES1-U03 2/26/2004-U04 ROBIN-U04 SPECIAL-U05 STUDY-U05 SESSION-U05 CC,-U06 CRA,-U06 HFA-U06 2003 08 20 CC MIN SSS(ÌìHFOStudy Session Minutes August 20, 2003 Page 4 CLOSED SESSION The City Council, Redevelopment Agency and Housing and Finance Authority tabled all Closed Session Items to September 3, 2003 Special Meeting. There were no objections. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION GC 54956.9(a)) Name of Case: Petra Reynaga vs. City of Baldwin Park ACTION: Matter not discussed. Tabled to September 3, 2003. CONFERENCE WITH REAL PROPERTY NEGOTIATOR GC 54956.8) Property: 3145 Baldwin Park Boulevard Negotiating Parties: Agency Negotiating with Arman Gabay of M & A GABAEE, LLP Agency Negotiators: Dayle Keller, Stephanie Scher. Meledo Picazo, and other representatives as designated Under Negotiation: Price and Terms of Payment ACTION: Matter not discussed. Tabled to September 3, 2003. CONFERENCE WITH LABOR NEGOTIATOR GC 54957.6) Agency Negotiators: Dayle Keller, Chief Executive Officer; Jose Sanchez, Finance Director; Kara Bouton, Assistant to the Chief Executive Officer; and other representatives as designated Employee Organization: SEIU, Professional and Technical Employees; Police Management Employees; Confidential Employees; Baldwin Park Police Officer's Association and General Management Employees ACTION: Matter not discussed. Tabled to September 3, 2003. ADJOURNMENT There being no other matters before the Council/Agency, the meeting was adjourned at 7:00 p.m. Approved as presented by the Council/Agency at their meeting held November 5, 2003. Rosemary/M"RgTp??z, CMCJose Sanchez, Chief Deputy City Clerk Agency Secretary BIB] 38044-U01 2003-U02 08-U02 20-U02 CC-U02 MIN-U02 SSS-U02 LI1-U03 FO8420-U03 FO16119-U03 DO38914-U03 C4-U03 MINUTES1-U03 2/26/2004-U04 ROBIN-U04 SPECIAL-U05 STUDY-U05 SESSION-U05 CC,-U06 CRA,-U06 HFA-U06