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05-13-1996 - Special 2 Meeting - MinutesMINUTES SPECIAL MEETING OF THE WEST COVINA CITY COUNCIL May 13, 1996 ' The special meeting of the West Covina City Council was called to order by Mayor Touhey at 6:05 pm in the Management Resource Center at City Hall, 1444 W. Garvey Avenue, West Covina. ROLL CALL Mayor Touhey, Councilmembers Herfert, Manners, Wong Absent: Mayor Pro Tern McFadden (excused) Others Present: Starbird, Wylie, Koniarsky, Tucker, Delgadillo, Panas, Keating, Greene, Distelrath, Glover, Collier, Samaniego, Jones, Hoppe, Markham, Paul, Ure, Yoshizaki, Berry PUBLIC COMMENT ON AGENDA ITEMS No comments offered. STUDY SESSION: PRELIMINARY FY 96/97 ANNUAL BUDGET City Manager Starbird commenced the evening's discussion with an overview of the budgetary accomplishments of FY 95/96. He then proceeded on to FY 96/97. In preparing the preliminary budget, the General Fund revenue assumptions used by staff included: General Overview * Recovering economic growth * No cuts to property tax * Impact of overhead recovery costs reduced due to reduction in administrative costs * RDA repayment unchanged at $1.652 million * BKK Augmentation Fund interest limited to $200,000 * Plaza Mello -Roos savings not included * Marketing Fire Services (Covina Fire billing: $250,000) * Treatment of BKK Business License Tax re those that terminate 8/15/96: + Increased tonnage $150,000 + Falcon transportation $150,000 * Treatment of BKK BLT that are ongoing: + Methane $ 50,000 + Electrical $ 75,000 * RDA projects sales tax from new developments: $350,000 At this point, Controller Panas presented the overview of the revenue summaries. He discussed the differences between the projected FY 95/96 figures against the estimated FY 96/97 figures. The totals reflected a 1.8% increase from FY 95/96 to FY 96/97. Council discussed Mr. Panas' estimated 7.8% increase in sales tax. The concern was expressed that the figure was too high and for budgetary purposes, perhaps a more conservative increase would be wise. Different methods for accommodating a change in the esti- mated increase were discussed by the City Manager and the Con- troller. Mr. Panas reviewed FY 96/97 General Fund appropriation highlights: * No use of reserves - fund balance retained at $12.0 million (increase of 20% over FY 94/95) UJ • Minutes of 5/13/96 Page 2 Overall increase of 3.8 % Continue to hold the line on inflationary increase (CPI currently at 2.7%) Appropriation estimates include reasonable cost of living increases The General Fund preliminary appropriations total for FY 96/97 is projected to be $28,414,914.00, a 3.8 % increase over the adopted FY 95/96 total. In reviewing highlights of the FY 96/97 Restricted Funds, the City Manager suggested renaming the BKK Augmentation Fund. Mayor Touhey suggested transferring those monies to the Capital Improve- ment Program. Mr. Starbird recommended that the interest from the BKK Augmentation Fund be transferred to the CIP, but leave the principal in a separate account which would generate that interest. Controller Panas next reviewed the Combined Funds Statement for FY 96/97. During this discussion, Councilmember Wong requested a map depicting the various park districts. An overview of the Capital Improvement Program proposed for FY 96/97 was presented with a total of $17,675,863. No projects have been prioritized within this grand total - that will be done when the CIP is taken separately during the budget process. To conclude the overview discussion, City Manager Starbird recap- ped the General Fund budget proposed for FY 96/97. Recess Mayor Touhey recessed the City Council meeting at 7:30 pm. Council reconvened at 7:45 pm with all members present, except Mayor Pro Tem McFadden. Departmental Overviews Police Chief Distelrath reviewed the proposed preliminary budget for Police Services, including Office of Emergency Services. The FY 96/97 total is $15,559,211.00, a .42 % increase over FY 95/96. ADJOURNMENT Attest: City Clerk Janet Berry Fire Chief Greene reviewed the proposed preliminary budget for all of Fire Services. The FY 96/97 total is $7,987555.00, a 4 % increase over FY 95/96. Communications Director Keating reviewed the proposed pre- liminary budget for Communications. The FY 96/97 total is $1,578,320.00, a 2 % increase over FY 95/96. Motion by Herfert and seconded by Touhey to adjourn the special meeting at 8:57 pm. Motion carried 4-0. W Ad Tw" M yor Michael Touhey