05-07-2003 - Special Meeting - MinuteslJ
K MINUTES
SPECIAL MEETING
OF THE
WEST COVINA CITY COUNCIL
MAY 7, 2003
Mayor Pro Tem Miller called to order the special meeting of the West Covina City Council at 6:30 pm
in the City Manager's Conference Room at City Hall, 1444 W. Garvey Avenue, West Covina. The
second half of the special meeting convened in the Community Room on the First Floor for a budget
study session.
ROLL CALL Mayor Pro Tem Miller, Councilmembers: Hernandez, Wong
Absent: Mayor Herfert, Councilmember Sanderson
Others Present: Pasmant, Africa, Fields, Hoffinan
CLOSED SESSION Mayor Pro Tem Miller commenced the closed session at 6:30 pm for a
discussion on the following matters:
CONFERENCE WITH LABOR NEGOTIATOR: Hoffman
Pursuant to Government Code � 54957.6
SBPEA — General Employees' Group
Mid -Management employees' Association
Confidential/Exempt Employees' Association
SBPEA — Maintenance Employees'
Public Safety Dispatchers Association
West Covina Firefighters' Association, Local 3226
West Covina Police Officers' Association
West Covina Police Management Association
The closed session concluded at 7:15 pm. The City Council relocated to
the Community Room on the First Floor for the second half of the
scheduled special meeting.
2003/2004 PRELIMINARY BUDGET OVERVIEW
ROLL CALL Mayor Pro Tem Miller, Councilmembers: Hernandez, Wong
Absent: Mayor Herfert, Councilmember Sanderson
Others Present: Pasmant, Africa, Fields, Bachman, Swink, Freeland, Hoppe, McIsaac,
Bommarito, McDonald, Gardner, Devera, Samaniego, Paul, Johnson,
Morgan, Urban, Durbin, Greene, Tedesco, Briley, Hernandez, Houston,
Yauchzee, King, Smilowitz, O'Keefe, Berry
Mayor Pro Tem Miller called to order the budget study session at 7:30 pm.
• He stated that comments from the audience regarding the preliminary
budget would be taken after the staff presentation.
A video was aired on Channel 55, which was prepared by the League of
California Cities. The video discussed the adverse impact that the current
State's budgetary problems would have on California cities.
Finance Director Bachman gave a slide presentation on the Preliminary
FY 2003/2004 budget. Although fiscal year 2002/2003 has not yet con-
eluded, he was able to project some conclusions. There will be
approximately a $3.296 million gap between revenues and expenditures
and there may very well be a $5.171 million gap at the conclusion of FY
03/04. There are several contributory factors causing this year's gap: (1)
four years of budgets have been balanced with reserves, (2) loss of interest
revenues to the amount of $1.5 million, (3) loss of state subventions - $1.5
million, (4) public safety PERS rate increase of $790,000, (5) medical
insurance increases of $390,000, and (6) Liability/Workers Comp
increases of $700,000.
Of interest was the breakdown of the preliminary FY 03/04 budget:
Personnel 81 %
Materials & Services 18%
Equipment 1 %
Mr. Bachman presented a slide projecting into FY 2005/2006 the impact
of the PERS Rates, which depicted the following increases:
Misc.
Safety
Total Annual
Cumulative Increase
Increase
Increase
Increase
Over 2002/2003
2003/2004
$ -
$ 882,500
$ 822,500
$ 882,500
2004/2005
$ 888,076
$ 2,449,802
$ 3,337,878
$ 4,220,378
2005/2006
$773,895
$ 2,382,609
$ 3,156,504
$ 7,376,882
Total
$ 1,661,971
$ 5,714,911
$ 7,376,882
Preliminarily, the FY 2003/2004 budget may have a $5.172 million gap
between revenues and expenditures. Mr. Bachman's slide proposed
several options to help reduce that amount to a $2.988 budget gap. With
drastic cuts in the operating budget, there could actually be a potential
budget surplus of $324,476.
Finance Director Bachman concluded with a list of policy questions,
recommendations for a more balanced approach to balance the budget, and
an overview of the RDA budget.
PUBLIC COMMENT ON ITEMS ON THE AGENDA
Mayor Pro Tern Miller asked for comments from the audience and the
following addressed Council:
r
Royal Brown, 2153 Aroma Drive, suggested annexing the area around
Nogales High School into the City of West Covina as one method for
increasing revenues, as well as straightening the borders of the City. He
also suggested increasing the cost of meals at the Senior Citizens Center to
$2.00/meal which would reduce City subsidies by $20,000.
Council Comments Councilmember Wong thanked staff for the report and the materials. He
would like to see what kind of options a 15% cut would have on the
budget. Additional alternatives would give Council more options to
choose from.
Councilmember Hernandez requested the community to support the
• Council in the cuts they will ultimately need to make. Input from the
citizens and various groups may engender ideas not yet thought of.
Mayor Pro Tern Miller noted that annexations need to be reviewed before
taking any steps to ensure that they would be economically sound for the
City and beneficially to the area. He, too, supported the concept of
looking at 15% cuts. He suggested looking again at ambulance service.
/A
Mayor Pro Tern Miller said the next budget meeting will be in about thirty
days and anyone who has an idea about increasing revenues or cutting
expenditures was invited to call into the City Manager's Office.
CLOSED SESSION (CONTINUED)
Motion by Wong and seconded by Hernandez to conclude the study
session portion of the meeting and return upstairs to the City Manager's
Office to finish the closed session.
Reporting Out from Closed Session
Legal Counsel Africa reported that in reference to the labor negotiation
conferences, the City Council received a briefing from the City's
negotiation team regarding the status of the negotiations and the potential
impact of the budget to such negotiations. No direction was given by the
City Council. No final action was taken and there was nothing further to
report.
In reference to the conference regarding the employment of a public
employee (City Manager) specifically regarding the Housing Assistance
provisions of the contract, staff gave a briefing to the City Council
regarding the matter and further clarification was given regarding certain
issues. The City Council provided direction to staff. No final action was
taken and there was nothing further to report.
The closed session concluded at 10:47 pm.
ADJOURNMENT Mayor Pro Tern Miller adjourned the meeting at 10:47 pm.
Attest:
V
City Clerk Janet Bern
•
Mayor Steve Herfert
9