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HomeMy WebLinkAboutSPJT Minutes 1991-06-18SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGE, HEARINGS Page 1 IN THE COUNCIL CHAMBERS OF THE CITY OF SAN RAFAEL, TUESDAY, JUNE 18, 1991, AT 7:00 P.M. Special Joint Meeting: Present: Lawrence E. Mulryan, Chairman/Mayor San Rafael City Council/ Albert J. Boro, Member/Councilmember San Rafael Redevelopment Agency Dorothy L. Breiner, Member/Councilmember Michael A. Shippey, Member/Councilmember Joan Thayer, Member/Councilmember Absent: None Also Present: Pamela J. Nicolai, City Manager/Executive Director Gary T. Ragghianti, City Attorney/Agency Attorney Jeanne M. Leoncini, City Clerk/Agency Secretary Ransom E. Coleman, Finance Director 1. BUDGET HEARING - PRELIMINARY 1991/92 BUDGET - File 8-5 x R-103 City Manager/Executive Director Nicolai gave an overview of the proposed Budget. She stated that this year has brought some new challenges to balance the upcoming Budget, not only with some of the State Legislation and balancing the State Budget which authorized the County to pass some charges to the City in the middle of this particular fiscal year after the present Budget was approved, but the City has also been impacted significantly by the water moratorium and the recession in most of the revenue sources. There are many unknowns ahead which create other problems. She gave examples of putting sales tax on new items, taking away from the local jurisdictions the DMV In -Lieu Fees, which both equal $65 million. The impact will not be equally felt in various jurisdictions and the actual impact will take some time to evaluate. Ms. Nicolai stated the recession has had an impact on all the revenue sources, to some degree, particularly sales and property tax, which are the two largest sources of revenue for the City. She stated the City has a diversified portfolio in sales tax, so when one industry was down, another could be up, but in this particular fiscal year both sales and property tax are significantly down as far as growth is concerned. Ms. Nicolai stated they have had some actual losses in revenue from permit fees and activities in Planning and Public Works related to development, which have been impacted both by the recession and the water moratorium. The overall revenue picture has had a very slight growth this fiscal year, but costs are rising faster than the growth rate. Next year, the assumptions are that the recession will be bottoming out and there should be a change this Fall with turnaround, but noting this is hard to predict. She stated they are taking a conservative stand because of this. They are also assuming there will be a continued decline in revenue in the activity related development - Planning fees and building fees. The Planning Department is working on amending their fee structure and will come to the Council shortly. She stated they found their fees are half of what the other jurisdictions are charging. Adjusting the fees should keep the revenue level the same, even though the activity level is down slightly. She stated they are assuming they will have a full year of the Transient Occupancy Tax (TOT) from Embassy Suites Hotel and one-half year revenue from The Office Club, still to be built. There are no significant new developments in the future, so far, to be assumed as a new revenue source. Ms. Nicolai stated that as a result of slow growth areas in the revenue, this proposed budget is actually freezing 9, positions throughout the Departments. Ms. Nicolai went on to state that a hiring freeze was implemented in January, antici- pating the City would have some deep problems with the recession and the State budget problem. This has allowed staff to make some adjustments in this upcoming year with- out laying off employees, to evaluate some existing vacancies and look at this in relation to the Council's priorities established one year ago at the priority setting meeting. She then gave the Council a chart showing which positions are vacant now and the proposed frozen positions for the upcoming year. She noted these are presented in an overall Departmental context with different priorities for filling certain vacancies; an example was the Traffic Engineer, which has implications to several Departments - the Planning, Public Works and Police Department. Chairman/Mayor Mulryan stated the quality of service needs to be looked at, as well as what the City can afford to give in terms of any increases in salaries as a trade off for the services they are able to afford. Ms. Nicolai stated that the prepared Budget does reflect salary increases based on the contractual MOU with MAPE which is going into its second year, but does not include any increases in the Departmental budgets for Police and Fire because the City is currently in negotiations with them. She stated there has been an amount set aside for the conclusion of these negotiations. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 1 SRRA/SRCC h,,NUTES (Special Joint) 6/18/91 ,,JDGET HEARINGS Page 2 Member/Councilmember Breiner stated it looked like 10, positions and Member/ Councilmember Shippey commented that she was not counting 1 position and asked if that was the revolving fund position. Ms. Nicolai answered affirmatively. Member/ Councilmember Shippey stated that if they eliminated this position then there would be 17z from which they plan to freeze the 92 positions. He asked if Ms. Nicolai was assuming in her projections that those not frozen will be vacant in approximately one-half a year or so. Ms. Nicolai stated that she has given authorization to gear up for recruitment, but not make any offers; but some do not need a significant delay if they are not to be frozen. However, some differ because they produce revenue such as the Parking Enforcement Officer for the Police Department as opposed to a Dispatcher or Records Clerk, etc. She stated that with the new information on sales tax, one of the things she will be looking at is how quickly to fill these positions. Member/Councilmember Shippey asked what the assumption is as to when these positions will be filled. Ms. Nicolai stated the Budget is based on the assumption that the positions recommended to be filled be funded as of July 1, 1991, to which Chairman/ Mayor Mulryan concurred and stated this is very typical of making a conservative assumption. Member/Councilmember Shippey agreed and suggested pushing this back a little. Ms. Nicolai agreed with this and stated they would therefore have some savings. Member/Councilmember Boro stated that he thinks they should go forward with the hiring of the positions approved in this Budget as soon as possible, stating they needed to balance level of service vs. other expenditures. He expressed the desire to maintain the level of service and the delay in hiring is not helping the situation. Member/ Councilmember Boro asked about fees the Planning Department is asking for and are they included in this Budget proposal. Ms. Nicolai answered in the affirma- tive. He asked if there was any additional revenue out there. She answered they were working on a few other options, but were not ready to present them. Ms. Nicolai then stated that the other Departments would summarize and discuss their own sections in this Budget. REVENUE ESTIMATE DETAIL Finance Director Coleman discussed the revenue items, stating that part of the problem is that the property tax increase for the coming fiscal year is not as great as it has been in the past, because the property tax always lags behind. He stated most of the increase from year to year is not from new construction, but rather from resale of property, noting they are expecting a 6% increase next year. GENERAL FUND - TAXES Mr. Coleman then discussed the sales tax. Last year there was a 9% growth in the sales tax, which then dropped to about 3.5% in the 2nd Quarter, and the 1st Quarter came in at a negative 8%. Assuming there are no delinquencies or other adjustments to those figures, the year will end with approximately a 2% growth for this fiscal year over last fiscal year. He stated that the revenue for the next fiscal year was predicated on an estimated revenue this year of $10,950,000, so we will be starting off with a lower base of $10,705,000. He stated to get to the $11,440,000 estimate that we have in the Budget, we would have to experience about a 6.5% growth in the Sales Tax the next fiscal year. He noted it was possible, but it would take a good rebound in the economy. The other project contributing to Sales Tax revenue was the opening of The Office Club in the Fall which should generate, hopefully, another $50,000 of revenue for the City. Mr. Coleman stated the other taxes are fairly stable. The Franchise Tax will be up next year, thanks to VIACOM's contribution of a percentage of their income and the percentage of the PG&E sales in San Rafael. Transient Occupancy Tax will be up because there will be a full year of Embassy Suites reflected in this Budget. He stated he expects the revenue from Embassy Suites to be up from $710,000 to $800,000. He stated that the Business License Tax is showing an increase from $850,000 last year to $1,185,000 because of all the changes; however, he is not estimating any increase in this for next year because: 1) they do not know how the gross receipts are going to work; 2) there may be some fine tuning of these rates. The Property Transfer Tax was doubled in October, 1990, effective November 1, 1990. Even though the tax was doubled, the increase scheduled for next year assumes that there will be a full year of the $2.00 rate rather than just seven months of the $2.00 rate and that there will be a turnaround in real estate sales. He stated the $25.00 per parcel Paramedic Tax will be increased, noting staff will probably be coming back to the Council some time in July with a higher rate which will reflect the higher cost of the Paramedic program. He noted Commercial Development is flat. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 2 SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 3 LICENSES & PERMITS He stated that licenses and permits reflect the construction activity, noting they started off in 1989/90 at $365,410 and are down to $257,500 this year. Hopefully they should do a little better in 1991-92. Member/Councilmember Breiner asked if the City is being diligent with the remodeling inspections - is the City having their employees driving by to make sure the remodel- ing that may be in progress is acceptable. She indicated that the public has made complaints, bringing this to her attention. Mr. Coleman responded that they do get complaints from contractors regarding the problem of not having a permit for some remodeling. Chairman/Mayor Mulryan stated that it depends on the honesty of the person having the work done. Public Works Director Bernardi stated that they respond to complaints and calls regarding remodeling that looks unofficial, indicating that if a permit is not in their records, they send someone out to check on the situation. The penalty for this is a double building fee. Member/Councilmember Breiner then asked how much lost revenue is involved in this and if the laws are being enforced for this illegal remodeling. Member/Councilmember Thayer then asked Mr. Coleman about the property taxes collected by the County, what is the percentage for the City of San Rafael. Mr. Coleman responded that of the 1% levy collected, the City gets approximately 13% - 15%, depending upon what part of town is involved. Ms. Thayer asked if prior to Proposition 13 the amount received was 50%. Mr. Coleman stated that prior to Proposition 13 the City was receiving about the same level; after Proposition 13 passed, a pro -rata share of the taxes were taken from the individual based on their own property tax rate. This level was basically frozen. Chairman/Mayor Mulryan added that at that time the City had a property tax of about $1.00, which was the lowest in the County. Mr. Coleman stated that the City tax was frozen, based on the AB 8 formula that was created in 1979 to distribute the property taxes. Member/Councilmember Boro asked Mr. Coleman about the Transient Occupancy Tax. Mr. Coleman confirmed that once Embassy Suites is operating for about one year, they are estimating the tax will be over $300,000 with a subsequent growth in the following year to approximately $400,000. Member/Councilmember Boro then asked if the property transfer tax was increased in order to compensate for the $400,000 booking fee. Ms. Nicolai answered affirmatively. Mr. Boro then confirmed that the City's current revenue was not enough to cover this. Ms. Nicolai answered affirmatively. Mr. Coleman responded that two years ago, the City generated $380,000 based on the $1.00 rate. He stated they would be lucky to generate that same amount with the $2.00 rate effective November 1, 1991, indicating he was hoping that this area would pick up, but there was no guarantee. FINES, FORFEITURES & PENALTIES Mr. Coleman stated that this was pretty much a straight line, as there is not much activity. The only thing that would impact this would be an increase in the parking citations or other fines or increased enforcement in those areas. REVENUE FROM USE OF MONEY & PROPERTY Mr. Coleman stated that they are seeing a slight decline this year and expect this to continue next year. It is expected to stay low and then pick up toward the end of the year, probably a break even situation. REVENUE FROM OTHER AGENCIES Mr. Coleman explained that CSA -19 is a contractual arrangement the City has with the County providing fire service in the unincorporated areas surrounding San Rafael, with a factoring in of a 5% increase for next year. He stated State Vehicle In -Lieu Tax is another minor problem in that these figures are supplied to the City by the State of California and they estimated that next year, the City would get $1,828,000 and the revised estimate for this year was $1,730,000. He noted it would now appear that $1,700,000 would be the best the City could do this fiscal year. State Homeowners' Tax is somewhat the same. It depends on the Homeowners' exemption that property owners have. The Cigarette Tax has been declining, even though the estimate is $150,000. It seems it will be actually $140,000 this coming fiscal year. Mr. Coleman commented on Revenue from Other Agencies which is primarily received from the Redevelopment Agency for various overhead costs that the Agency is billed for. He stated they are expecting $340,000 from the Agency in the next fiscal year. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 3 SRRA/SRCC MSN UTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 4 CHARGES FOR CURRENT SERVICES Mr. Coleman stated the fees for subdivisions for the current year is $75,000. The Planning Department is working on revised fees and it is estimated that they should be able to generate $150,000 next year with the new fee schedule. He stated some of the other areas have been checked and indicate some inactivity in the building area. Engineering fees, for example, two years ago were $41,769 and now have dropped down to $5,000, and is expected to continue at $5,000 next year. Hazardous waste charges are expected to be at $40,000 this fiscal year, and hopefully, will be closer to $50,000 this coming year. POST is simply a reimbursement for Police personnel sent for their POST training and is partially reimbursed from the State of California. Library Fees are not changing. Cultural Affairs is up this year, thanks to the movie industry, and noting that another movie would help our revenue. Sanitary District reflects their reimbursement to the City for the Sewer District budget, which is estimated next year to be $464,000. The Major Crimes Task Force is a reimbursement for the Officers on loan to the Task Force from the City. OTHER REVENUE Mr. Coleman stated this is a very fluctuating item, from $15,000 one year to $240,000. He noted this is a good year because it reflects some refunds the City got back from the City's Liability JPA. There were two payments received for the year 1986 which was the City's first year in the program. He stated that this was the overall view of the General Fund, noting the big question - mark is the sales tax, but stating it is too early to tell what will happen. He noted the County is looking for a 6% increase. He stated he should have more information when the Sales Tax figures come out in September. GAS TAX FUND He stated that there is a new source of gas tax funds - 2105 monies. This constitutes a new tax on gasoline. To receive these funds, the City has to show that they can meet the maintenance effort. Most cities have not been able to do this, but San Rafael has for the last two years. Member/Councilmember Shippey asked if the City had any control over the maintenance efforts. Mr. Coleman answered affirmatively. He stated it basically takes all revenue from all sources that are spent on streets. RECREATION REVOLVING FUND Mr. Coleman stated these figures come from the Recreation Department, indicating there will be an increase in cost for one new child care facility next fiscal year. GENERAL OBLIGATION BOND FUND Mr. Coleman stated that the $190,000 estimated will pretty much cover the City's debt service. He stated this should be the last year the City has to levy an override tax to pay for the General Obligation Bonds. ADMINISTRATIVE & MANAGEMENT SERVICES CITY COUNCIL - Page 11 City Manager Nicolai stated there would be no frozen positions in this area. There is no projected increase in salaries and the benefits are staying the same. Services and Supplies have been reduced, including travel, subscriptions and supplies. Member/Councilmember Shippey mentioned that their Supplies & Services were down in 1989/90 and then went back up in 1990/91 and asked why this happened. Ms. Nicolai answered that some things were purchased out of the Travel and Meeting fund which brought it back up. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 4 SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 5 Member/Councilmember Breiner moved and Member/Councilmember Thayer seconded, to approve the City Council Budget in concept, in the amount of $62,628. AYES: MEMBERS/COUNCILMEMBERS: Boro, NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None CITY MANAGER - Page 12 Breiner, Shippey, Thayer & Chairman/Mayor Mulryan City Manager Nicolai stated that the only salary increases are indicated in the MAPE contract for the non -management positions in this department. There is one increase in this budget for the contract for the labor negotiating services, which was approved by the Council in March, for IEDA which is handling the current negotiations process. This is under Contractual Services under Services and Supplies. She indicated that Travel and Training has been cut. Member/Councilmember Shippey asked if there would be a tiations activity. Ms. Nicolai answered affirmatively. involved with the Police and Fire negotiations at this the project involving the rules and regulations, etc. concern that the use of IEDA was worth the money spent. are invaluable now in the negotiations in progress and on many of the personnel -related issues for the City. status report on the IEDA nego- She mentioned they are heavily time and trying to wrap up Mr. Shippey indicated his Ms. Nicolai answered they as an information resource Member/Councilmember Shippey moved and Member/Councilmember Breiner seconded, to approve the City Manager's Budget in concept in the amount of $384,317. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None CITY CLERK - Page 14 Ms. Nicolai stated that the City Clerk's budget is very tight and the amount allotted is down from last year. There is no change in the number of employees and since the advertising costs vary, there is a problem estimating the Supplies & Services. City Clerk Leoncini asked if the budget turns around in the future, that perhaps some of these cuts could be put back into the budget, such as temporary help, overtime and a computer. Member/Councilmember Breiner asked if changing the counter hours would help save money in the Clerk's office. Ms. Leoncini indicated she would prefer to have the office open throughout business hours. Chairman/Mayor Mulryan indicated that because they receive legal documents and claims, this would not work in this area. Member/Councilmember Boro asked if Ms. Leoncini had investigated a new recording system for the Council Chambers and what the cost would be. Ms. Leoncini answered affirmatively, adding the approximate cost would be $10,000 for a system with the proper specifications. Mr. Boro suggested that it should be looked into within the next two years. Member/Councilmember Boro moved and Member/Councilmember Shippey seconded, approval of the City Clerk's Budget in concept in the amount of $170,262. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None FINANCE - Page 16 Finance Director Coleman explained that their budget included a cut of one-half of a position, noting one of the Clerks will be coming in part-time during the fiscal year, which reduces the clerical help by 900 hours. He stated they are hoping to make up at least part of that by a new automated citation system to eliminate some of the data entry work that is currently being done. There are some cuts in Supplies and Services, particularly travel and training. The reduction in force will have some impact in being able to respond to the public at the counter. Member/Councilmember Breiner asked if the Business License Fees are due on a fixed date each year. Mr. Coleman answered that most are due January 1st., but many of the contractors, etc., are done on a quarterly basis. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 5 SRRA/SRCC MINUTES (Special Joint) 6/18/91 uJDGET HEARINGS Page 6 Member/Councilmember Breiner moved and Member/Councilmember Thayer seconded, to approve the Finance Budget in concept in the amount of $462,396. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None PERSONNEL - Page 18 City Manager Nicolai stated that this is probably one of the most understaffed depart- ments that the City has overall. Most of the expenses relate to services to the other Departments relating to recruitment, medical standards, development, advertising for positions, and having the physical and psychological exams done. She stated they will be carefully monitoring the advertising media for certain positions, to not advertise with an expensive firm that does not necessarily bring any particular benefit. Member/Councilmember Boro moved and Member/Councilmember Breiner seconded, to approve the Personnel Budget in concept in the amount of $206,897. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None CENTRAL SERVICES - Page 20 Ms. Nicolai stated that this budget was status quo, noting that most of the increases in costs relate to those contracts for city-wide arrangements. Member/Councilmember Breiner moved and Member/Councilmember Thayer seconded, to approve the Central Services Budget in concept in the amount of $862,718. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None CITY ATTORNEY - Page 22 Ms. Nicolai stated that this budget is also status quo, noting that the supplies costs have been kept to a minimum along with travel and dues and some reduction in outside legal assistance, and a slight increase in bocks and publications costs. The half-time Deputy City Attorney position is vacant at this time, and all the Departments feel this is a very important position to fill. Member/Councilmember Thayer asked if court costs were included in this budget. City Attorney Ragghianti answered affirmatively. Member/Councilmember Shippey moved and Member/Councilmember Boro seconded, to approve the City Attorney's Budget in concept in the amount of $265,303. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None CULTURAL & RECREATIONAL SERVICES LIBRARY - Page 23 Thayer & Chairman/Mayor Mulryan Ms. Nicolai stated there is one frozen position, a Library Assistant in the Circulation Division. She said that even though there is an increase in the part-time budget, it is actually less than what was requested. With regard to the Book Budget, they will be asking for some minor supplemental funds from the Davidson Bequest. Library Director Stratford stated that at the present time the Circulation Department is run from a very labor intensive view, noting they are planning to update their Circulation Department with a computerized system. He stated that with the loss of the Senior Library Assistant and 20 hours of Library Assistant time, the part-time budget represents a 50 person hour per week loss for this operation. He indicated that the impact of this is a reduction in operating hours in order to stay within this budget. He stated the consensus of the staff was that Thursday night was the least busy and they recommended closing that night and he also recommended closing Wednesday morning as well to keep within the budget. This would be a reduction of 8 hours per week of service. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 6 SRRA/SRCC MINUTES (Special Joint) 6/18/91 oUDGET HEARINGS Page 7 He stated that the first phase of automation has been approved by the Council and they expect to be fully automated by the Summer of 1993. With this system, there will no longer be as much manual labor cost involved in the checking in or out of books. He stated that the reduction in hours should be temporary and after the automation is fully in progress, the hours can be extended again. Member/Councilmember Boro stated he had a problem with the closing of the Library at certain hours because it interferes with the main purpose of being a public service area. He asked if another option could be considered, and requested Mr. Stratford to come back to the Council with another proposal. Chairman/Mayor Mulryan stated that by putting any funds from other departments back into the Library to keep it from closing down more hours would put an unnecessary burden on those other departments. He asked Mr. Boro more specifically what he would be looking for in this report from Mr. Stratford. Mr. Boro explained that he would specifically like to know how much it would cost to keep the Library open Thursday night. He stated that maybe the cost of living within this budget is just not possible and he thinks they need to make a choice between service to the public and monetary value. Mr. Stratford explained that 90% of the budget is comprised of two items, basically - Personnel costs and books. If the book budget were reduced significantly, the money could be put into the personnel account. This would make it difficult for the public to find what they had come to the Library to find. He stated the other trade-off is that when the Library is open, certain desks will be closed making a heavier burden on the Circulation Desk. He indicated that the staff has been involved in the decision making on the closing times of the Library and other cuts. Member/ Councilmember Boro asked if the Board of Library Trustees had gone through this process and do they support the schedule that has been put together. Mr. Stratford answered they did have concerns about the cutback in hours, but do understand the budget situation. Member/Councilmember Shippey indicated that he is strongly in support of what Mr. Boro stated in principle. He agreed with the use of volunteer help, if possible. He stated that he thinks they need to look into ways to keep the public service available without compromising the other areas mentioned. Member/Councilmember Breiner stated that she agrees that if there are cuts to make, that each department must carry its own burden for that decision and it is not un- reasonable that the City of San Rafael is facing cuts. She stated it might be inter- esting to have feedback from the schools through the Schools Liaison Committee with regard to the hours of closure of the Library, in terms of the students' needs. Chairman/Mayor Mulryan agreed with this, but noted what they all needed to do was to agree on the initial expenditure level. Mrs. Breiner stated she does support what is being proposed at this time. Member/Councilmember Thayer stated that conceptually she agrees with Mr. Boro with regard to the hours of the Library. She also wanted to know how much in dollars and cents the closing time will actually amount to. Chairman/Mayor Mulryan summarized by saying they would like to know a little bit more about the trade-offs by fine tuning the Library Budget in the ways suggested. Member/ Councilmember Breiner stated she hoped there could continue to be programs such as the story time at Pickleweed Park with funding from a grant. Mr. Stratford stated there was a grant called "Families for Literacy" which is providing outreach to the Hispanic community specifically which is State funded. He also mentioned the Bookmobile being used two afternoons a month. Member/Councilmember Boro stated that it was the Council's ultimate decision to approve the Budget and he feels they should penalize one service over another if there is a greater need in that area. Member/Councilmember Thayer stated that they could not make that decision until they talked to all the department heads. Mr. Boro agreed with this. Ms. Nicolai stated they have used the Davidson Bequest for special projects. This may be an option to resolve some of these problems. She stated that actually they have been able to maintain the level of service needed by the public when other entities have had to cut back, until now. Her main concern is to maintain the prior- ities the Council picked one year ago in some of the other areas, not just give out the funds evenly. At some point, she stated, they will not be able to maintain the level of service desired by the public, due to other problems. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 7 SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 8 Member/Councilmember Breiner asked if the Davidson Bequest is being used in this budget. Mr. Stratford stated that they are recommending supplementing the book budget, for approximately $45,000, in order to keep pace. Also, last night Council approved $9,000 from the Davidson Bequest for the automation project. He also pointed out that the first phase of the grant with the other jurisdictions - we received approximately $60,000, $125,000 for the first phase for data entry of our collection. So the majority of the cost of automation will be borne by the Davidson Bequest. Member/Councilmember Boro moved and Member/Councilmember Breiner seconded, to approve the Library Budget in concept in the amount of $846,464, with the understanding that the Library Director will come back to the Council with a report on incremental dollars it would take to add to the hours of operation of the Library throughout the year. AYES: MEMBERS/COUNCILMEMBERS: Boro, NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None CULTURAL AFFAIRS - Page 26 Breiner, Shippey, Thayer & Chairman/Mayor Mulryan City Manager Nicolai explained that some of the extra funds requested were for the Social Security needs of some of the part-time help and the utilities' costs can fluctuate depending on how cold the Winter is, and other factors. Member/Councilmember Shippey asked if staff was taking any active steps to bring in more movie making at Falkirk. Administrator Adney stated that there was active conversation going on with various studios. Member/Councilmember Breiner asked if the figures were calculated for each department with regard to the actual Social Security tax. Ms. Nicolai answered affirmatively and indicated there would be a slight increase for each department. Member/Councilmember Boro complimented Carol Adney on the operation of Falkirk and the increase in revenue; also, for her efforts toward further cultural diversity. Chairman/Mayor Mulryan also commented on this and the fact that Falkirk is being seen and enjoyed by an increasing number of people. Member/Councilmember Shippey moved and Member/Councilmember Boro seconded, to approve the Cultural Affairs Budget in concept, in the amount of $165,157. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None RECREATION - Page 29 City Manager Nicolai stated that there were fairly minor changes in expenditures in the Consolidated General Fund Budget. All the other cuts related to this Department are reflected in the Consolidated Revolving Account, which is a self - funding account. Chairman/Mayor Mulryan stated he understands there is a total outgo of $2.6 million of which only $500,000 comes from the General Fund and the balance comes from the various programs. He then congratulated Recreation Director Sharon McNamee on the success of balancing this budget, plus the broad spectrum of programs that are produced. Ms. McNamee stated that overall the programs are succeeding, but the revenue is down. They are investigating this to see how to increase the revenue. Member/Councilmember Breiner asked a question regarding the figures on Page 31, showing increases between the 1990 budget and the proposed. Ms. McNamee stated that was because of the Social Security impact. She stated that some of this was increase in benefits for Child Care employees. Ms. Breiner stated that they could not have these increases in the future. Finance Director Coleman noted that Social Security is just over $49,000 in this budget. Member/Councilmember Shippey asked why there are different expenses for the three separate Community Centers. Ms. McNamee stated that the San Rafael Community Center has the most activity of the three. Mr. Shippey then asked where the new Child Care Center would be. Ms. McNamee answered at Dixie School. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 8 SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 9 Member/Councilmember Thayer congratulated Ms. McNamee on the job she has done with the Department, especially within the child care program. Member/Councilmember Boro moved and Member/Councilmember Shippey seconded, to approve the Recreation Consolidated General Fund in concept in the amount of $504,035. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None Member/Councilmember Boro moved and Member/Councilmember Shippey seconded, to approve the Recreation Consolidated/Revolving Budget in concept, with clarification on the Social Security figure, in the amount of $2,123,838. AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None TRANSPORTATION & ENVIRONMENTAL SERVICES PLANNING - Page 36 City Manager Nicolai stated they have frozen 2 positions out of 13, which is the most significant impact in this budget. She also stated there has been a downturn in the number of projects and/or the kind of projects coming into the Planning Department. Planning Director Pendoley stated the staff impact is 2, positions. He indicated the counter hours have been changed, but there have been staff changes so that there is a receptionist up front who can answer questions in place of planners to free up their time. He indicated they would like to see the Traffic Engineer position filled to assist both Planning and Public Works. Member/Councilmember Shippey asked about the problems anticipated this next year with- out a Traffic Engineer. Ms. Nicolai answered that staff thinks it is critical to have this position filled. She stated that the position is currently vacant, but it is highly recommended by other departments that it be filled. Member/Councilmember Breiner asked about the hours the counter is closed to the public. Mr. Pendoley stated they have no one at the counter from 12:00 noon to 1:00 P.M. After 1:00 P.M. there are a receptionist and an intern. Mrs. Breiner then asked if the Planners were available to counter traffic in the afternoon. Mr. Pendoley stated that the public makes appointments for this time, but they are not available for walk-ins. Member/Councilmember Shippey asked if the walk-ins had very simple questions, not needing the expertise of a Planner, were they helped. Mr. Pendoley answered that most questions can be handled by the receptionist and the intern, and most of the regular customers have learned to utilize the hours posted. Mr. Pendoley stated they would have a very difficult time managing the General Plan without a Traffic Engineer. He added that, rather than have the counter position restored, he would like to see more hours for Code Enforcement, to be coupled with the Deputy City Attorney and with the Planning system. He stated this concept is being worked on and will be presented later to the City Council. Member/Councilmember Boro asked about the Comprehensive Tree Program on Page 36; if it is a time priority item still. Mr. Pendoley answered affirmatively. Mr. Boro then asked Ms. Nicolai if they could discuss the Planner position to be used within the Redevelopment Department and reporting to Mr. Pendoley in the next Budget Hearing on the Public Works section. Member/Councilmember Thayer asked Mr. Pendoley if there are any items on the priority list that could be pushed down further which would help the Planning Department. Mr. Pendoley stated that they are now following the steps within the General Plan. A representative of the Loch Lomond Homeowners' Association stated their concern about the need for a tree ordinance in their area. He requested that this be given greater priority by the Planning Department than what is scheduled now. He suggested a fee be attached to the mediation within this ordinance to bring revenue into the City. Member/Councilmember Thayer moved and Member/Councilmember Breiner seconded, to approve the Planning budget in concept in the amount of $728,009. SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 9 SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 10 AYES: MEMBERS/COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Chairman/Mayor Mulryan NOES: MEMBERS/COUNCILMEMBERS: None ABSENT: MEMBERS/COUNCILMEMBERS: None City Manager Nicolai made the recommendation that by September more information will be available, on: 1) Another quarter of revenue, so there is a more clear indication of what the situation will be, and 2) The efficiency study will be done by that time, also. There can be a priority adjustment opportunity at that time. There being no further business, the meeting was adjourned at 9:10 P.M. l2, .off JEANNE M.EDNCINI, Agency ecretary/City Clerk APPROVED THIS DAY OF , 1991 CHAIRMAN OF THE REDEVELOPMENT AGENCY/ MAYOR OF THE CITY OF SAN RAFAEL SRRA/SRCC MINUTES (Special Joint) 6/18/91 BUDGET HEARINGS Page 10