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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. - 2 - 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.