Minutes 2002-05-20MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
CYPRESS CITY COUNCIL
HELD
May 20, 2002
The adjourned regular meeting of the Cypress City Council was called to order at 5:38
p.m. by Mayor Sondhi in the Board Room, West Wing of City Hall, 5275 Orange
Avenue, Cypress, California.
PRESENT: Council Members McGill, Piercy, Mayor Sondhi
ABSENT: Council Member Keenan, Mayor Pro Tem McCoy
Also present were City Manager, Director of Finance and Administrative Services,
Public Works Director, Recreation and Community Services Director, Police Captain,
Police Lieutenant, Assistant Community Development Director, Assistant to the City
Manager, Finance Manager, and City Clerk.
The Director of Finance and Administrative Services stated the 2002-2003 annual
budget includes the operating budget and the first year of the Capital Improvement
Program. The workshop will provide an opportunity to discuss budget assumptions and
for Council to provide direction and input before the final budget is adopted.
The Director of Finance and Administrative Services stated the budget cycle begins
with revenue projections in November/December, which are updated throughout the
budget process. A mid-year budget review/goal review is held in January. In March, the
Capital Improvement Program workshop is held and the City Manager conducts
departmental meetings. In April, a public hearing is held for the Capital Improvement
Program and the CIP is then adopted. The final budget is adopted in June.
The Director of Finance and Administrative Services stated the considerations in
developing the budget include the City's goals, the Capital Improvement Plan, financial
restraints, and additional City Council direction. Assumptions that were made in
preparing the 2002-03 budget were: increase the General Fund Balance for future
revenue threats, approved City goals, adopted Capital Improvement Plan, financial
restraints, particularly within funds, holding the line on operating expenditures in view of
future revenue projections, and focus on infrastructure needs.
He stated the overall proposed budget of the City is $25,501,185, which is an increase
of $784,468. The proposed operating budget is $20,385,398, which is a 5.6% growth.
Proposed personnel costs for the year are $12,868,800. Total General Fund revenues
are $22,982,465, which is an increase of 5.4% and total expenditures are $21,096,300,
which is an increase of .5%. The difference between revenues and expenditures is
$1,886,165, which can be used for any additional Council appropriations during the
budget year. The expenditures reflect a reduction of two police officers from last year's
budget that is supported this year by a supplemental law enforcement grant.
The Director of Finance and Administrative Services stated future revenue threats
include State takeaways (vehicle license fee backfill and reduced street/public safety
funds), business relocation, and mandated costs/labor legislation.
He stated the Cypress Recreation and Park District has estimated revenues of
$3,537,633, with other funding from the Park Development Fund ($75,000) and
Equipment Replacement Fund ($12,773) for a total of $3,625,406. Proposed
expenditures total $3,619,515.
CITY COUNCIL MINUTES MAY 20, 2002
The Director of Finance and Administrative Services stated the Cypress
Redevelopment Agency has estimated revenues of $2,385,993 with expenditures
totaling $2,621,008.
He stated revenue projections are based on analyzing individual revenue sources,
current revenue receipts, trends, current development activity, and internal/external
analysis. Revenue impacts included in the budget include adjustment of property tax for
court ruling on Prop. 13 growth calculations and adjusting Southern California Edison
franchise revenue for initial ruling on what revenues are subject to fees. Revenue
impacts not included in the budget include State budget takeaways to help balance the
State's $24 billion deficit.
The Director of Finance and Administrative Services stated major revenue assumptions
for the budget include slower development growth, 7.3% sales tax receipt growth from
the previous budget, flat property tax growth, increased transient occupancy tax and
business license receipts, increased grant funding, reduced State subventions due to
census numbers, and City investment earnings projected at 4%.
Personnel changes for the upcoming budget are:
Police Department: Reclassify two Police Corporals to Sergeants, reclassify four Police
Corporals to Police Officers, reclassify Records Coordinator to Police Clerk II, reclassify
Emergency Services Officer and Court Liaison Clerk to Police Services Officers, reduce
Police Aide parking enforcement hours, and continue funding additional Police Services
Officer with special law enforcement grant
Community Development Department: Eliminate temporary part-time Assistant
Building Permit Clerk
The Director of Finance and Administrative Services stated other noteworthy budget
items that have major financial impacts include:
800 MHz backbone maintenance costs
Police mobile display computers service costs
Infrastructure appraisal of the Sorrento Pump Station
Added tree trimming service
NPDES County permitee and inspection fees
West-Comm Joint Power Authority costs
Capital outlay
set aside additional funds for Management System software
replace three Police marked vehicles
replace video system - Council Chamber remodel
replace District van and passenger sedan
Capital Improvement Program
storm drain and sewer projects
Measure M - street rehab/traffic signal projects
Civic Center sidewalk replacement
General Fund support of infrastructure maintenance
playground equipment upgrade
Internal Service Funds (fully funded)
The Director of Finance and Administrative Services stated the following would be done
for infrastructure long-term maintenance in the next budget year:
Public buildings: $250,000 annual transfer to General Fund for maintenance and
improvement; $70,000 in depreciation charges for future remodel and repair of
buildings
Streets: $800,000 annually for residential rehabilitation; arterial rehabilitation
funded by Measure M and Gas Tax revenues
Traffic signal system: Replacement and upgrades funded by Gas Tax, Measure
M and grants ($513,500); operations funded by Lighting District ($168,076)
CITY COUNCIL MINUTES MAY 20, 2002
Sewer system: Operations and capital improvements funded through fees
charged on water bill ($362,974)
Storm drainage system: $415,720 for routine maintenance; additional
infrastructure funded in part by developer fees
Street lighting system: Operations and infrastructure needs funded through
Property Tax; $464,654 budgeted for current needs
Curbs, gutters, and sidewalks: Backlog of $650,000 in needed repairs. CIP policy
appropriates $100,000 annually, which combined with $250,000 this budget and
last budget year will make significant progress toward eliminating backlog.
The Director of Finance and Administrative Services stated the budget is balanced and
the growth is consistent with the added services and City goals.
The City Manager stated that in discussions with Mayor Pro Tern McCoy, he had
expressed concern over crime rates increasing and the need for additional police
support. The City Manager had requested the Chief to look at alternative funding
sources for additional personnel.
Council Member McGill asked if the funding for street lighting current needs and capital
needs is separate from the Lighting District.
The Director of Finance and Administrative Services stated the Lighting District is for
the operation and maintenance of the street lights.
Mayor Sondhi asked if funding programs for affordable housing would be a line item or
lump sum of $500,000.
The Director of Finance and Administrative Services stated $200,000 is budgeted for
the HELP I Program, $200,000 for the HELP II program, and $100,000 for development
assistance.
Mayor Sondhi asked if funding would still be available for the Orange County Regional
Airport Authority.
The Director of Finance and Administrative Services stated funding could be taken from
the Contingency Fund.
ORAL COMMUNICATIONS:
None.
ITEMS FROM CITY COUNCIL MEMBERS:
No items presented.
ITEMS FROM CITY MANAGER:
No items presented.
ADJOURNMENT: Mayor Sondhi adjourned the meeting at 7:03 p.m., to Tuesday, May
28, 2002, beginning at 5:30 p.m. in the Council Chambers, 5275 Orange Avenue,
Cypress, California.
ATTEST:
MA~SS
C~Y CLERk( OF TI~ CITY OF CYPRESS
3