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HomeMy WebLinkAboutSPJTBUD Minutes 1994-06-14SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page I IN THE COUNCIL CHAMBERS OF THE CITY OF SAN RAFAEL, TUESDAY, June 14, 1994, AT 7:00 PM Special Joint Meeting: Present: Albert J. Boro, Mayor/Chairman San Rafael City Council/ Paul M. Cohen, Councilmember/Member San Rafael Redevelopment Agency Barbara Heller, Councilmember/Member Joan Thayer, Councilmember/Member David J. Zappetini, Councilmember/Member Absent: None Others Present: Pamela J. Nicolai, City Manager/Executive Director Jeanne M. Leoncini, City Clerk/Agency Secretary BUDGET HEARINGS - 1994-95 BUDGET - File 8-5 x (SRRA) R-103 Mayor/Chairman Boro described the process to be followed for the budget hearings. City Manager/Executive Director Nicolai gave an overview of the budget, noting we are not facing any known major cuts from the State. She explained that the State's fiscal situation is not good, and they have been attempting to characterize it as a balanced budget only in context of having sued the Federal Government, hoping for $3 billion, which is unlikely. Once the election is over, there may be a mid -year crisis. Ms. Nicolai stated that our budget was put together with the revenue that we are estimating for the upcoming fiscal year and anticipates no particular impact by the State. She noted that the only significant proposed change included in the budget is the implementation of a second paramedic unit, which we would propose to house north of Puerto Suello Hill. The biggest increase in the number of calls has been in the number of medical calls. Ms. Nicolai noted that the Council will be presented with a suggested paramedic tax increase and instituting third party billing to support that additional service. Ms. Nicolai explained we took money from the Capital Fund to fund some capital projects, including the rebuilding of Fire Station No. 6, with money that was created with the sale of the Blue House and with money that became available through the conversion of the County to the "Teeter Plan". Ms. Nicolai stated that by law, she is obligated to present a balanced budget, which by definition means that the revenue coming in during the next fiscal year is the limit of what we can spend in that fiscal year. Therefore, the use of savings accounts, or other sources of revenue does not fall within the legal definition of a balanced budget. Counci lmember /Member Zappetini asked for clarification of the increase in paramedic tax to 3 cents per square foot for businesses. He asked if it should actually be 3 cents total, or a 1 cent increase. Finance Director Coleman stated that was correct, it is an increase of 1 cent since it is already at 2 cents. Mr. Zappetini then inquired whether the residential tax was a household tax rather than per the number of people in the household. Ms. Nicolai stated it is per household, no matter how many people live there and also includes apartments. Mr. Zappetini asked what other projects will be funded with the $400,000 because he thought it was $450,000 to rebuild Station No. 6. Ms. Nicolai stated the $400,000 refers to the Teeter Plan conversion that the County implemented in the middle of the fiscal year, which is a way of distributing property tax. It says that the County in December should distribute to the Cities the property tax that should come in. They are the ones responsible for collecting any delinquencies. We get 100 percent of our allocation, and the county gets any penalties collected. This year, because of the school district allocation and what the State is doing, it was to their advantage to do that. So, the county will give us the 100 percent property tax value. This one time in order to convert to that plan, we were paid for all the delinquencies on the books. Because it was a one- time occurrence, staff suggested it be put into the capital fund. Finance Director Coleman reviewed some of the major revenue sources, noting the following: - All increases from the property taxes are as a result of change of ownership of property in San Rafael. As prices or sales decline, so too, has the increase in our property tax. We are expecting a little less than 4 percent growth next year. The property tax shown here represents the Teeter Plan figures. - This year is the first time in two years that there has been a turnaround in sales tax; previously there had been a decline. Two years ago, the sales tax revenue was $10.7 million; this year it is just under $10 million. - The franchise tax is made up of about half from Viacom and half from PG&E. We may experience a decline in the revenue from the cable franchise because of all the changes going on at the federal level that are mandating some reductions at Viacom. SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 1 2 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page - There has been a big increase in transit occupancy tax, primarily due to Embassy Suites which has had a lot of growth. - The transfer tax represents future sales in Marin County and reflects the taxes received on the sale of property. The transfer tax gives us a clue of what to expect in terms of property tax. - Paramedic tax is up about 20% based on the projected 20 percent increase in tax rate to be presented at the next Council meeting. Councilmember/Member Heller asked what the difference is between "secured" and "unsecured", and asked if the supplemental tax is the same as Proposition 132. Mr. Coleman answered that secured is a building or dwelling, while unsecured is like a boat. The supplemental tax is what a person is billed when they buy a house and there are taxes owed that were not paid at the time of the sale. He explained this is an unpredictable amount having to do with the timing of the sale, the sales activity in the County, etc. Mr. Coleman explained that not much change is expected in licenses and permits. The same is true of fines and forfeitures. The largest item in this category is parking tickets. In the area of moving violations, the State is taking approximately 50 percent of the fines that normally would come to the City. Mr. Coleman stated that interest income and rent should not change much. He noted that part of the rental income comes from Gannett for the bus stops. Mr. Coleman stated that the other large block of revenue is revenue from other agencies. CSA 19 is a contractual amount. State motor vehicle in -lieu fees is a figure supplied to us by the State and is dependent on the sale of new vehicles. Another revenue source is money from the Redevelopment Agency that the City bills for various services performed by City staff. The other large source of revenue is the billing to the school districts for the work we do on the various fields for the school districts. Mr. Coleman stated that the State Transportation Fund has no money in it this coming year because it was a one-time revenue source from the State this past year. Proposition 172 sales tax represents the half cent sales tax that was supposed to generate at least 50 percent of our loss, although it is not turning out that way, primarily because we are getting paid only for 3/4ths of a year and because the legislation was vague enough to allow the County to create a formula that is to their advantage rather than ours. He stated that San Rafael generates approximately $5 million of this money but gets back only about $200,000. The original expectation was that we would get about $230,000 for 1994/95. Counci lmember /Member Zappetini asked if we had a State Motor Vehicle License Fee in the budget a couple of years ago. Mr. Coleman stated that an initiative was passed three or four years ago that guaranteed this money to go to local governments. However, the State has interpreted that to mean they can distribute that to any local government, whether County or City. He further explained that the vehicle in -lieu tax is based upon a formula which distributes money based on a pro -rata share of car registrations State-wide, not just from San Rafael. Mr. Zappetini asked if there was a chance we would receive the money eventually. Mr. Coleman answered that we have no reason to believe that the State is going to do anything with that revenue source over the next year or two. Counci lmember /Member Cohen asked whether the revenue generated from CSA 19 that goes to fund EMS (Emergency Medical Services) is in this figure. Mr. Coleman stated it is not; the CSA 19 account is in the Fire Department budget and the primary cost of that account is Fire Station #7 at the Civic Center. Mr. Coleman stated that the Charge for Services is status quo. The only significant change is $300,000 in the total for third party billing. Mayor/Chairman Boro asked for an explanation of third party billing and how it will be allocated for paramedic service. Mr. Coleman stated that another company will help collect a fee (from the insurance companies) for transporting people in an ambulance to the hospital. This fee, plus the $200,000 from the increase in paramedic fees, will be used to fund the second unit. Councilmember/Member Zappetini asked who we charge for plan checking fees. Mr. Coleman answered that when developers come they are charged for plan checking. Mr. Zappetini asked if it was a percentage of the project costs. Mr. Coleman stated he was not sure of the structure, but it probably is. Mr. Zappetini ask where "other revenue" comes from. Mr. Coleman stated it is a source of revenue that is recurring every year; an item with no definite revenue source coming in. It includes things such as insurance refunds, refunds on liability or workers' compensation, refunding from the Peacock Gap Assessment District, etc. SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 2 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 3 Councilmember/Member Thayer stated last year the State abolished the AB 8 bail-out fund; there was a property tax shift from the cities to the schools and to the Counties. She asked if that becomes automatic every year or is it within the discretion of the Legislature? Mr. Coleman stated it has been built in to the State's budget now; the money they have taken away is permanent. All of the property tax that has been taken away from us still does not equal all of the AB 8 shift. He explained the State has a $5 billion deficit, and if they lose a court case before the Supreme Court on a unitary tax, they will be obligated to spend another $2 billion on refunds to international firms. Mayor/Chairman Boro asked if that included the $3 billion they are hoping to get from the federal government. Mr. Coleman stated the $3 billion is supposed to make up part of their deficit. Mr. Coleman stated that the ongoing revenue in the Capital Improvement Fund is interest income that was in the fund. The fund started off with money set aside from the sale of property to the Redevelopment Agency to pay for the fire house, and $400,000 was transferred from the Teeter Plan for a total of $900,000. Councilmember/Member Zappetini referred to the asterisk on page 4 which states "includes a transfer of $75,000 from Workers' Compensation to Liability Fund", and asked where it shows up on the chart. Mr. Coleman stated the $452,000 from the current fiscal year and the $501,000 for 1994/95 is money being transferred into the General Fund from the interest income from the Workers' Comp and Liability Fund, so this is a revenue source from funds not shown on this chart but does increase the money available in the General Fund. He pointed out that an asterisk was omitted from the $452,078 under Transfers In for 1993/94 and the $501,000 from 1994/95. CITY COUNCIL City Manager/Executive Director Nicolai stated there are no substantive changes in the City Council's budget. The amount in Services and Supplies is primarily to cover the cost of attending meetings and some for office supplies. Mayor/Chairman Boro asked for comments from the audience, and there were none. Mayor/Chairman Boro stated there was very little money in the budget for travel or training. He cited examples of a Councilmember attending the California League of Cities Meetings, or going to another city to receive an award on behalf of the City - even traveling to Chicago, and suggested we come up with some funding. Ms. Nicolai stated she would come back with a recommendation. Councilmember/Member Thayer moved and Councilmember Cohen seconded, to adopt the City Council budget in concept in the amount of $57,080. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None CITY CLERK City Clerk/Agency Secretary Leoncini reported she has received two quotes for the transcrip-tion and recording systems and is awaiting the third, noting the equipment should be purchased within this budget year. Mrs. Leoncini stated this has been a busy year for the City Clerk's office, citing an election in November and the addition of two new boards and commissions. In 1992/93, there were 39 applications for boards and commissions, in 1993/94, there were 109. All minutes but one from last year have been brought up-to-date. She stated the previous Deputy City Clerk resigned in July, 1993, and the position was not filled permanently until November, 1993. Mayor Boro asked for questions from the audience, and there were none. Councilmember/Member Zappetini moved and Councilmember/Member Cohen seconded, to approve the City Clerk's budget in concept in the amount of $178,809. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None CITY ATTORNEY City Manager/Executive Director Nicolai stated this is a status quo budget. The staffing level is the same as was previously authorized. The previous Assistant City Attorney was not on the retirement plan, but the current one is which brings the costs up slightly. There are additional funds for legal fees, books and equipment maintenance, plus they want to get a computer upgrade. City Attorney Ragghianti stated the real increase for the computer coordination is $500, and $1,000 was removed from book upkeep. He stated that 1993/94 was a particularly busy year, with 5 land -use related lawsuits filed against the City. He commended his staff on the fine job they are doing. Councilmember/Member Heller asked if the Deputy City Attorney was an in-house employee or SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 3 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 4 on an outside contract. Mr. Ragghianti answered that he is here 20 hours a week. Councilmember/Member Thayer asked when we need outside counsel, from what funds do they come. Mr. Ragghianti stated it comes from the City -funded General Liability Account administered by Insurance Consultants Associates, Inc. Mayor Boro asked for questions from the audience, and there were none. Counci lmember /Member Cohen moved and Councilmember/Member Zappetini seconded, to approve the City Attorney's budget in concept in the amount of $272,726. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None CITY MANAGER Ms. Nicolai stated they have asked that a half-time secretarial position be changed to 3/4 time. Services and Supplies have been reduced. Management Training and Development Funds have been eliminated. Mayor/Chairman Boro asked for questions from the audience, and there were none. Councilmember/Member Thayer moved and Councilmember/Member Heller seconded, to approve the City Manager's budget in concept in the amount of $346,134. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None FINANCE Finance Director Coleman stated the major change is a transfer of some of the monies current-ly being spent on Purchasing functions into the Finance Department. He stated two years ago that function was budgeted and performed by a person in Central Services; since then that position has been frozen and unfunded, but the work has been performed by the Office Engineer in Public Works. A portion of his salary has been transferred into the Finance Department. This year Requests for Proposals (RFPs) will be sent out for banking services. Counci lmember /Member Heller asked about the RFP on the banking services. Mr. Coleman stated it should have been listed under Specific Objectives, and it would be done to see if we would change services. Counci lmember /Member Zappetini referred to the Specific Objectives item, "Revise budget format to include more program data." He asked if that is a new computer program. Mr. Coleman stated we are trying to have the departments code in more detail to show in a functional way what they are doing in order to give the Council more costs related to program areas, more project tracking. Mayor/Chairman Boro referred to the hand-held devices used for writing traffic citations and asked how they are working out. Mr. Coleman stated they are working great and saving 2-3 hours a day in data entry work. Councilmember/Member Heller asked if we have done a five-year financial plan in the past. Mr. Coleman answered we have made some projections on revenue, and we also should include various policies and goals we want to accomplish. Counci lmember /Member Cohen asked if there is any update on a previous request to research business license fees in the construction industry. Mr. Coleman stated that Bill Palmer in the Finance Department is working on that issue and noted that everyone coming in for a building permit is asked whether they have a business license; however, some people come into town on weekends and never get a building permit. Mayor/Chairman Boro asked if there is a process to determine if subcontractors have a business license. Mr. Coleman stated when a general contractor gets a business license, he completes a form listing subcontractors. Also, Joe Curley, Building Inspector, visits job sites to remind them they need to have a business license. Mr. Zappetini stated that his experience has been that a general contractor will be asked if he has a business license, but often the subs are not. Mr. Coleman stated they are trying to formalize a plan to ensure it happens. Mayor Boro asked for questions from the audience, and there were none. Councilmember/Member Heller moved and Councilmember/Member Zappetini seconded, to approve the Finance budget in concept in the amount of $511,096. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 4 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 5 NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None CENTRAL SERVICES Ms. Nicolai explained that Central Services is a division of the City Manager's office which includes the print shop, the mail and delivery within the City, and contract for the City-wide computer automated system. Assistant City Manager Golt stated there are only minor changes in this budget, noting the part-time Typist Clerk position has been changed to a part-time General Services Aide who does afternoon mail. She stated there is an increase in the contract for CMSI computer services. Ms. Nicolai explained there is a Data Processing Policy Committee which has been working with CMSI. She stated that while there is an amount in the budget for this increase, the contract will come before the Council for their approval. Councilmember/Member Zappetini asked how much we are paying CMSI now. Mr. Coleman answered it is approximately $26,000 per month. Mr. Zappetini asked how old is the service and how complicated is it compared to a new service, and have we looked at changing services? Ms. Nicolai explained that the hardware itself has been changed several times, and what we do is contract for a service level. CMSI is then responsible for keeping software up-to-date. She stated that part of the increase in the budget in addition to another person, is bringing two new computers in that will work faster. Mr. Coleman also pointed out that the Supplies and Services portion of the budget includes more than just computers; it includes electricity, utilities and telephone charges for all of City Hall - they are not broken down by depart-ment. Mr. Zappetini asked for a breakdown of that item. He also asked why the vehicle rental costs have increased, what they were before and what they are being increased to. Mr. Coleman stated we have four pool cars, and the rental rate has risen $300 per vehicle. He explained that all departments rent cars from the City, and it is a depreciation account. Mayor/Chairman Boro suggested the Council review our computer services. Ms. Nicolai stated that when the new agreement is presented to the Council, they will have the whole thing to look at. She pointed out that by adopting this budget, they are not agreeing to the additional cost for CMSI, it is merely setting the money aside. Mr. Zappetini asked if we request bids for computer services. Ms. Nicolai stated we did in the beginning ten years ago, but have not since. Counci lmember /Member Cohen suggested having the Budget Oversight Committee look at this item. He also stated if what we are funding is a service level, then it ought to be hardware and software independent; therefore, why does the $75,000 include amortizing the purchase of new hardware. Ms. Nicolai stated it is a service level, and at the same time real costs must be dealt with and are not completely separable. Mayor/Chairman Boro agreed that this should be looked at by the Budget Oversight Committee. Counci lmember /Member Heller asked if CMSI takes care of all the computer and data proces- sing for the City, or are there separate systems. Ms. Nicolai stated that the new systems coming in are separate. The Police Department has a system tied into other statewide data bases, but they are integrated with our system. She stated that the Policy Committee looks at this issue when a department wants to set up a network. Mr. Zappetini asked if our ten year old system has the capability to be expanded. Ms. Nicolai said it did. He also asked if we were linked into the County's system. Ms. Nicolai stated the County's existing system was not even compatible between their own offices. However, she noted we are working together with the County on the new information highway system. Councilmember/Member Cohen emphasized we do not have a ten year old system; what is ten years old is the contract. Mayor Boro asked for questions from the audience, and there were none. Counci lmember /Member Cohen moved and Councilmember/Member Zappetini seconded, to approve the Central Services budget in concept in the amount of $793,799. However, Mr. Cohen asked to see a breakdown of the Supplies and Services portion as a part of the budget. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None PERSONNEL Ms. Nicolai stated there is a small decrease in the authorized personnel because the half- time Typist Clerk is being budgeted at a lower salary step. Personnel Director Chandler stated that the increase in Supplies and Services is primarily related to medical costs (especially physicals). SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 5 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page Councilmember/Member Thayer asked if our Affirmative Action Plan was being updated. Mr. Chandler answered that it has been completed. Counci lmember /Member Zappetini referred to the Specific Objective regarding the current data processing system, and asked if their system tied in with the others. Mr. Chandler answered that their system is a part of CMSI; that they have a software program that allows us to computerize personnel data on all employees, and establish a position control system to track positions for budget purposes. Ms. Nicolai explained that program is already in the existing system, tied into the payroll program; it just has to be implemented. Mr. Zappetini asked if the Personnel Department pays for that service. Ms. Nicolai stated it is budgeted to Central Services. Mayor Boro asked for questions from the audience, and there were none. Counci lmember /Member Cohen moved and Councilmember/Member Zappetini seconded, to approve the Personnel budget in concept in the amount of $212,829. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None CULTURAL AND RECREATION SERVICES LIBRARY Ms. Nicolai stated there is a reduction in full-time and part-time salaries. She noted that previous budgets have never reflected as allocated numbers the part-time, full-time equiva-lencies, such as the Library Assistant position and job sharing, but stated it is important to reflect these because the Library could not be operated without the total component of those hours. The current budget now reflects those positions. Library Director Stratford stated that one of the major changes in personnel this year is that we are using primarily part-time people in the Librarian slots. Previously there were four full-time Librarians; currently there are two full-time Librarians and several part- time Librarians. Regarding the automation project, Mr. Stratford reported that they had projected coming on- line with the circulation module on July 5th. However, because of problems in other librar-ies, it will be delayed until at least August, 1994. Several committees have been developed to work on data base parameters, developing how this system will function, how it will look. Counci lmember /Member Zappetini asked if it would necessary for library staff to go through a training process for the new automation. Mr. Stratford stated they are training in phases, with the first phase being the circulation module. Two staff members have been trained by the vendor, who will then train the rest of the staff. The next module will be the public access catalog which will probably begin in October or November. They are expecting to have the Friends of the Library, the Library Board and the staff to help the public use it. Mr. Zappetini asked if the City school districts have tied into the library system. Mr. Stratford answered they have received requests from the school districts to use the system; however, because we are a multi -agency, functioning under the Joint Powers Agreement, we need to come to a consensus regarding how the schools will come on-line. He stated they would prefer to have the schools work out an arrangement where we are dealing with one entity rather than each school district. Mr. Stratford stated that the schools have an automation group. He stated he believed there is a way to provide access to the schools through the County Office of Education. He would expect there will be a charge to the schools to access the system to cover the costs. John Haeuser, Chairman of the Board of Library Trustees, stated approximately 20 percent of the Library budget is allocated for the purchase of books, and more than half of that money is coming from the Davidson Bequest. He stated the amount gets bigger every year, and he is afraid there will be nothing left in the Davidson Bequest in the next few years. He also noted we used to have the equivalent of 14.5 Librarians, and now we are down to 12.5. He noted we were without a Childrens' Librarian for a year in an attempt to help balance the Library budget. Mr. Haeuser stated the Library used to be open six days a week and now it is open five days a week. He pointed out we are gradually trimming a little here and there, and we cannot keep doing this forever. He did not have a solution, but urged the Council to start thinking about the problem. Mayor/Chairman Boro commented that this Council, as well as past Councils, have been very dedicated to the Library as demonstrated by the retrofitting of the Library. He pointed out that we have had to make cuts in all services due to State take-aways and inflation. He also complimented the Library Board on the fact that the Friends of the Library has grown from 50 to 300, and they plan to grow to 500. Councilmember/Member Thayer moved and Councilmember/Member Cohen seconded, to approve the Library budget in concept in the amount of $776,620. SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 6 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 7 AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None LIBRARY SPECIAL RESERVE FUND Ms. Nicolai stated there are four accounts in this fund - the Davidson Bequest, which continues to fund the Friends' Coordinator and the purchase of books; the Friends of the Library, Video Rental Fees and Copy Machine Fees. Counci lmember /Member Zappetini asked if the Davidson Bequest will be exhausted in a few years. Mr. Stratford explained the original bequest was $425,000, and at one point reached $800,000. In the last year, there was a major expenditure for the automation system of $108,000, and more and more of it gets used to supplement the book budget, plus about $200,000 for the remodeling. The balance is approximately $500,000. Counci lmember /Member Thayer asked that this data be included in the report to give a more accurate idea of the balance in these funds. Mr. Zappetini asked if the purchase of books would be cut back when the automation is begun since we will be borrowing from other sources. Mr. Stratford stated that the book budget has declined slightly, and is at its minimum. Mayor/Chairman Boro suggested that there is a new resource in the City called Borders Books which is a national book chain. They indicated they would be willing to work with the City regarding benefits. Mayor/Chairman Boro suggested the Friends of the Library pursue that, along with the possibility of cost- cutting for purchasing new books. Mayor/Chairman Boro asked for questions from the audience, and there were none. Counci lmember /Member Cohen moved and Councilmember/Member Thayer seconded, to approve the Library Special Revenue Fund budget in concept with a request for a report of the recent history of the Davidson Bequest. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None CULTURAL AFFAIRS Mr. Stratford stated that the major change in the budget this year is that General Fund money was used to fund a Development Coordinator, rather than a Curator, and the Curator has been funded by grants. He stated the Cultural Affairs division is committed to raising the funds to paint the house and repair the exterior. They have raised $63,000 in 18 months. He stated if they do not receive one of their grants for the development effort, they may have to scale back. Counci lmember /Member Heller asked about the Curator and Development Coordinator positions. Mr. Stratford stated the Curator's hours have been reduced, and it is now funded out of the General Fund. He noted getting a fundraising person out of grants is difficult. Councilmember/Member Thayer noted that in 1993/94, Falkirk was host to approximately 30,700 visitors, and asked the possibility of charging a fee - maybe $1.00 per person for entry. Mr. Stratford stated about $30,000 is earned per year for rental fees. Falkirk Administrator Carol Adney pointed out there is a donation box available. Mayor/Chairman Boro stated they have been approached by an advance person for a possible film to be shot at Falkirk which would include a fee which could help the capital budget. Councilmember/Member Zappetini asked what is the average contribution per year from grants, and Mr. Stratford answered $60,000 - $70,000. Mr. Zappetini asked how soon will we know about the pending grants. Ms. Adney stated we should know in August. Councilmember/Member Cohen asked that the subject of charging admission be referred back to staff, and wanted to know how much money is generated by special events, the donation box, etc. Mayor/Chairman Boro stated he sees Falkirk as he does the Library where we do not charge for services and is afraid charging admission may have a "chilling effect". Mr. Coleman pointed out that revenue appears in three places - the general fees going into the General Fund, contributions and grants in the Special Revenue Fund. Mr. Zappetini asked if the Program of Municipal Services booklet could be organized differ- ently so we could follow one page after another. Ms. Nicolai stated we could. SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 7 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page I Counci lmember /Member Thayer moved and Councilmember/Member Heller seconded, to approve the Cultural Affairs budget in concept in the amount of $152,775. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None Counci lmember /Member Thayer moved and Councilmember/Member Zappetini seconded, to approve the Falkirk Special Revenue Fund in concept as presented, with the understanding that at a future meeting there will be a discussion on the funds collected at Falkirk. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None Counci lmember /Member Cohen referred to page 97 regarding Grants, and asked since this is for information purposes and is not included in the budget totals, how does the money get accounted for? Mr. Stratford stated that if we get the grant, we do the program; if we do not get the grant, we do not do the program. Mr. Cohen asked if there is a breakdown of where the money goes. Ms. Nicolai stated that generally the Council is the one authorizing the request for the grant to begin with. Mr. Cohen stated it would be helpful if once a year all of the grant information could be put together. Irwin Williams, Cultural Affairs Commissioner, pointed out that the activities of the Commission attract a lot of volunteers. He stated that although it is hard to quantify, there is value to the volunteer hours that the Council should take note of. For example, staff estimates the value of the services contributed by the Cultural Affairs Service League (CASL) to be about $83,000. The Cultural Affairs Commissioners contribute $20,000 - $30,000 per year which indicates about $100,000 that really is not in the budget. Mr. Williams noted that they fed over 200 artists participating in the Italian Street Painting Festival last weekend. Mayor/Chairman Boro agreed that it would be helpful in the future during the budget process to reflect the total hours and some estimate of the values for both Cultural Affairs and the Library. Counci lmember /Member Cohen affirmed the importance of the cultural activity in the City. However, due to the financial situation the Council must look very closely at the budget. Wayne Lechner, Cultural Affairs Commissioner, stated he appreciates the Council being a stickler on the budget. He stated he chaired the reception for the Youth in Arts at Falkirk, noting they were very well organized and mentioned they felt so appreciated and welcomed at Falkirk. Mr. Lechner stated the citizens of San Rafael need to take more ownership and responsibility in Falkirk, and possibly also with the Library. He stated he would like for the Commission and the Council to figure out ways to do that. RECREATION Ms. Nicolai explained the Consolidated General Fund Budget and the Consolidated Revolving Fund Budget. In the late 1970's and early 1980's there was an effort to make the Recreation Department more self-supporting. In the mid -1980's they evaluated whether they were putting too much stress on the community by excluding people from participating in programs. The Consolidated General Fund category funds the Recreation Department with three recreation centers. All the programmatic areas are listed under the Revolving Fund, and those programs generate fees that cover those costs. It also offsets partial costs of the Recreation Supervisor, the overhead and facilities. Ms. Nicolai pointed out the one big difference is that the child care program has always been self-supporting. Counci lmember /Member Zappetini asked if self-supporting included building maintenance. Recreation Director Sharon McNamee answered that building custodial and general day-to-day maintenance are funded. Mr. Zappetini questioned the Salaries & Wages in the Consolidated Revolving budget with only 7.25 employees. Ms. McNamee stated the bulk of that is part- time salaries, noting there are over 60 child care employees, plus 50-100 part-time people working in sports. She stated the 7.25 personnel indicated relates only to full-time salaried employees. She also indicated we received $125,000 in grants for scholarships for 60-70 child care children. Ms. Nicolai explained that when the child care program was set up, all the employees were contractual employees. The 7.25 employees are those City employees with benefit packages. Over the years, we have tried to add benefit packages to some employees rather than to lose people and have dramatic turnovers. Mayor/Chairman Boro suggested putting an asterisk after the salary amount to explain it is for total salaries so it does not look so disproportionate. Mr. Zappetini stated he would also like to see a breakdown of Supplies and Services. Ms. SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 8 SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page McNamee explained that a large portion of that is for contractual services, but she will provide a breakdown. Ms. McNamee stated that the Hughes-Heiss Report indicated that the San Rafael Recreation Department was over 85 percent self-supporting, while most cities are at 50-60 percent. Councilmember/Member Cohen stated that according to Hughes-Heiss, the Recreation Department is very aggressive in the cost recovery approach. He agreed with Mr. Zappetini that we need more of a breakdown in the Supplies & Services and the Salaries & Wages categories so that anyone picking up the booklet could fully understand. Counci lmember /Member Thayer asked for a report pertaining to salary levels by groups of employees. Mayor Boro asked for questions from the audience, and there were none. Counci lmember /Member Cohen moved and Councilmember/Member Zappetini seconded, to approve the Recreation budget in concept for the Consolidated General Fund in the amount of $478,047 and the Consolidated Revolving Fund in the amount of $2,389,888, with a request for a report of the Supplies and Services in the Revolving Fund and the number of employees. AYES:COUNCILMEMBERS/MEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor/Chairman Boro NOES:COUNCILMEMBERS/MEMBERS: None ABSENT: COUNCILMEMBERS/MEMBERS: None There being no further comments, the meeting was adjourned at 9:25 p.m. JEANNE M. LEONCINI, City Clerk/Agency Secretary APPROVED THIS DAY OF , 1992 MAYOR OF THE CITY OF SAN RAFAEL/ CHAIRMAN OF THE SAN RAFAEL REDEVELOPMENT AGENCY SRRA/SRCC MINUTES (Spec. Jt.) (Budget) 6/14/94 Page 9