01-25-1993 - Regular Meeting - MinutesM I.N U T E S
• ADJOURNED REGULAR MEETING
WEST COVINA CITY COUNCIL
January 25, 1993
• The adjourned regular meeting of the City Council of West Covina was called to
order at 7:15 pm by Mayor Manners at the Shadow Oak Park facility located at
2121 E.'Shadow Oak Drive, West Covina. The Pledge of Allegiance was led by
Mayor Pro Tem Jennings.
ROLL CALL Mayor Manners, Mayor Pro Tem Jennings, Councilmembers
Herfert, McFadden, Wong
Others Present: Starbird, Thomas, Wylie, Panas, Holler, Salazar, Miller,
Urban, Koniarsky, Hanna, Keating, Orr, Emmons, Glover,
Greene, Janto, Irwin, Collier, Samaniego, Parker, Berry
LONG-RANGE FINANCIAL PLANNING - CITY REVENUES
City Manager Starbird stated that the purpose of the study
session was to review the City's General Fund and sources
Staff presentation for enhancing those revenues. The Council chose to take
a..series of study sessions out to the community to in-
crease public input and participation. Mr. Starbird
noted that many suggestions would be offered throughout
the evening as food for thought - with no accompanying
recommendations. Ideas were sought and received from
all levels of the organization. He also explained that
the anticipated drop in revenues was the result of several
issues:
a) State budget impacts of $1,160,000 in property
tax for FY 93/94 and $1,410,000 in Redevelopment
tax increments.
b) $5,000,000 in BKK revenues due to the closure
6f the landfill scheduled for 1995.
c) Downward trend in economic development.
Referring::to":the evening's handouts, City Controller Panas
explained the revenue and expenditure assumptions used
in arriving at the has projections to the year 2000.
As he discussed the graphs and pie charts, he fielded
questions and comments from the audience.
Assistant City Manager Wylie commenced the third leg of
the presentation, covering revenue alternatives and en-
hancements. These were presented in seven categories:
1) Revenues from development activities.
2) Revenues from departmental entrepreneurship
activities.
3). Non -recurring revenues.
4) Revenues from new or increased fees and charges.
• 5) Revenues from new or increased assessments.
6) Special tax levies.
7) General tax levies.
As Mr. Wylie discussed the seven categories, he addressed
policy issues pertinent to each category, the potential
revenues for various suggestions, and the implementing..:.
method for them. Questions and comments from the audience
were responded to throughout the category discussions.
- 1 -
•
CITY COUNCIL MINUTES
Recess
January 25, 1993
Page Two
Mayor Manners called a recess at 8:49 pm. The City
Council reconvened at 9:04 pm with all members present.
• Staff presentation Mr. Wylie continued his reivew of the remaining four cate-
continues gories, fielding additional questions and comments from
the audience.
Council comments The Councilmembers thanked the citizens for attending the
meeting and sharing their thoughts, concerns, and sug-__i_�...
gestions (please see attached listing).
Councilmember Herfert made several comments:
* Would the market support trading Prop "A" funds
at 65c/$1.00?
* A second generator will soon be installed at the
landfill and the City has taken no action to
impose a tax on the first generator.
* He gave his reasons for supporting the closure
of the landfill as scheduled in 1995.
* Asked what would happen to the property values
once the landfill does close.
Councilmember McFadden:
* City must hold the line on salaries and benefits.
* Continue pursuing a MRF or something similar.
* Would support an increase on BKK's current 10%
business license tax.
Requested more information on other significant
revenue alternatives, such as a.paramedic sub-
scription program and graffiti abatement.
* Does not favor additional taxes on the businesses.
Councilmember Wong:
* Felt the BKK closure issue needs to be on the
table.
* Favored the continuation of current programs, but
recognized that resources are limited.
* Explained the use and benefit of consultants by
the City.
* Very interested in citizen responses and welcomed
written comments as well.
Mayor Pro Tem Jennings:
Noted that there isn't just a one answer solution
to the City's budgetary challenges. The solution
will be a compilation of ideas and methods as
diverse as the viewpoints expressed this evening
by the citizens.
Mayor Manners:
* Everything is on the.table for consideration.
* However, nothing can be taken off the table until
• the expenditure side of the issue has been dis-
cussed.
Mayor Manners expressed her appreciation for the citizens'
input and encouraged them to attend the March 8 study
session when expenditures aridlservices-will be addressed.
• Council will begin to deliberate the issues once that
meeting has been held.
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CITY COUNCIL MINUTES January 25, 1993
Page Three
•
City Manager Starbird stated that the next study session,
• scheduled for March 8, 1993,.will-be-held at the Palm View
Park facility at the corner of Puente and Lark Ellen at
7:00 pm.
ADJOURNMENT Motion by Jennings, seconded by McFadden, and unanimously
carried to adjourn the meeting at 10:42 pm.
ATTEST:
,City Clerk Janet Ber
•
•
Mayor NanU Manners
- 3 -
Overview of Public Comments from
January 25 Study Session on
City Revenues
• At the January 25 study session on City Revenues residents raised a variety of questions, made
statements and offered suggestions regarding the City's revenues. The overview of these public
comments are not intended to be a listing of "quotes", but is provided to remind Council of the
types of concerns that were raised by the public. This information is provided for Council
• consideration as we work through the "acceptability" and "achievability" of the various revenue
alternatives.
The comments provided below have been listed under three areas: 1) questions; 2) statements;
and 3) suggestions.
- Has there been any discussion to join with another city(s) in the development of a MRF?
- In looking at fees for ambulance services or other services, has consideration been given to
the impact of collection rates?
- Has the City been able to take advantage of lower interest rates in their financing efforts (eg.
bonds)?
- Why does the City use consultants to the extent that it does and why can not staff perform
this work?
- Has the City considered the sale of the Water Company to generate revenues?
- Will the BKK landfill reach capacity in 1995 and if not has it been considered to leave it open
until it reaches capacity? What is the closure date?
- To the extent that the pending closure of BKK in 1995 is discussed in this forum, is the City
recommending that the landfill not be closed?
- The business community is hurting financially as well as the city and actions should take this
into consideration. Chamber has experienced a drop in membership, several due to businesses
going out of business.
- Fees and charges are nothing more than taxes which all serve to reduce our disposable
income. This further reduces money available to be spent at local businesses.
- There is a real concern about the placing more pressure on businesses.
E
Before new revenues are considered the City must show that current expenditures are
essential.
- Would not like to see advertising on City facilities.
Recalls when graffiti was not a problem, would not want property owners charged for
• cleaning.
We have a very diverse population with diverse points of view
- BKK will reach capacity in 1995 and whether or not it does the MOU requires the landfill
to close in 1995.
- The loss of revenue with the closure of BKK is substantial and if not at capacity leaving it
open for 1 or 2 years should continue to be an option, this will bring in a lot of money and
provide additional time for redevelopment and other alternatives to be put in place.
- There is to much emotion on the BKK issue and not enough reason. It should be left on the
table as an option. .
- We have had somewhat of a free ride with BKK. Now with its closure the real cost to the
public for services can be seen. City should compare with other cities regarding per capita
expenditures.
- Storm drains, fire, police etc. are expensive and are only an example of the services we want
and need and should be willing to fund. A nice, safe community is expensive.
- Taxes are the price we pay for civilization. If taxes raise too much it may hurt businesses.
Need to know what taxes are being spent on. Still have a substantial infrastructure need.
- A utility user tax is very regressive and would need to have some exemptions etc. for low
income.
- Merging cities may be considered, but bigger is not necessarily better.
- It appears that with a MRF and added BKK taxes most of the problem is solved. Can't the
rest be met with economic development activities.
- The Fire Department has done a good job in reviewing potential fees.
0
- Based on what is happening with private businesses in terms of merging together, the City
should consider merging with another city (Covina?) to cut costs. This issue should be placed
• before the voters not just staff and politicians.
- The City needs to develop and promote commercial activities. Promote the auto mall so it can
move towards the same success as the Cerritos Auto Square. Actions need to be taken which
bring in a larger share of the "pie".
• - . Has the City considered increasing the Business License Tax on BKK above the 10% level?
- Is there a potential to close Fire Station 3 and contract with Covina?
- May consider raising Business License Taxes with an offsetting decrease in the BIT.
- May consider a tax on potential methanol production at BKK and on energy generation.
- Would people be willing to pay an extra $150 or so per year to offset the loss of BKK
revenues and to have the landfill closed?
- Citizens committee on infrastructure found that a small tax of about $5 per residence per
month would go a long ways in meeting the City's needs.
- Need more efforts to promote shopping in West Covina.