Minutes 2003-06-02MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
CYPRESS CITY COUNCIL
HELD
June 2, 2003
The adjourned regular meeting of the Cypress City Council was called to order at 5:02
p.m. by Mayor McCoy in the Board Room, West Wing of City Hall, 5275 Orange
Avenue, Cypress, California.
PRESENT: Council Members McGill, Piercy, Mayor McCoy
ABSENT: Mayor Pro Tem Keenan, Council Member Sondhi
Also present were City Manager, Director of Finance and Administrative Services, Chief
of Police, Community Development Director, Public Works Director, Recreation and
Community Services Director, Police Captain, Police Lieutenant, Assistant City
Engineer, Finance Manager, Assistant to the City Manager, Personnel Manager, and
Deputy City Clerk.
Review of Fiscal Year 2003-04 Annual Budqet:
The Director of Finance and Administrative Services stated that considerations in
developing the budget include City goals, the Capital Improvement Plan, financial
restraints, the state budget deficit, and City Council direction. Assumptions that were
made in preparing the budget were: maintain the general fund balance and 25%
contingency as established by the City Council, approved City goals, adopted Capital
Improvement Plan, financial restraints, hold the line on operating expenditures in view
of revenue projections, and maintain focus on infrastructure needs.
He stated the overall proposed budget for the City is $31,092,964, which is an increase
of $5,591,779. The increase results from a $4.7 million CIP increase and personnel
costs of $923,174. The proposed City operating budget is $21,305,727, which
represents a 4.5% growth. Proposed personnel costs are $13,791,974. General Fund
revenues for the City's portion of the budget are $22,196,308, which is a decrease of
3.4%. The total expenditures are $23,218,243, an increase of 10.1%.
The Director of Finance and Administrative Services stated future revenue threats
include State takeways (ERAF shift, reduced street/public safety/redevelopment funds),
business relocation, mandated costs, and labor legislation.
He stated the Cypress Recreation and Park District has estimated revenues of
$3,447,357, with additional funding from the Park Development Fund of $197,000.
Proposed expenditures for the District total $3,641,696, an increase of $22,181. He
stated the Community Center renovation will impact the District through maintenance
and staffing costs. Renovation costs will be paid through redevelopment funds.
The Director of Finance and Administrative Services stated the Cypress
Redevelopment Agency has estimated revenues of $2,385,993, rollover debt of
$12,600,000, and fund balances of $17,728,109 for a total of $32,714,102. Proposed
expenditures/uses total $32,714,102. He stated that $100,000 will be placed in the
budget for residential rehabilitation projects, $300,000 in the first time homebuyers
program, and $750,000 for development assistance. He stated the Redevelopment
Agency will also be looking at the possible merger of the three project areas.
He stated that revenue projections are based on analyzing individual revenue sources
and are based on current revenue receipts, trends, current development activity, and
internal/external analysis. Revenue impacts included in the budget are: adjustment in
property tax for court ruling on Prop 13 growth calculations, adjusting the Vehicle
CITY COUNCIL MINUTES
License Fee for loss of backfill, loss of traffic congestion funding/booking fees
reimbursement and POST reimbursement, and adjustment of Southern California
Edison franchise revenue rate reduction.
The Director of Finance and Administrative Services stated major revenue assumptions
include slower development growth, a 6.5% Sales Tax receipt growth from the previous
budget, Non-Tax Increment Property Tax growth of 2%, increased Transient
Occupancy Tax, decreased grant funding, reduced State subventions due to population
numbers and the State budget, and City investment earnings projected at 3%.
He stated that personnel changes include the elimination of the part-time Court Liaison
Assistant position previously funded by contract with Los Alamitos and Seal Beach,
continued funding of a Police Services Officer and Police Officer position through the
Special Law Enforcement Block Grant, and the addition of a Recreation and
Community Services Superintendent position.
The Director of Finance and Administrative Services stated other noteworthy budget
items include:
· 800 MHZ backbone maintenance costs
· Police mobile display computers service costs
· Infrastructure appraisal- Sorrento Pump Station
· Continue tree trimming service level
· NPDES County permitee and inspection fees
· West-Comm Joint Power Authority costs
· Capital Outlay
Replace City-wide computers/servers/Financial Management System
Replace three Police marked and two Police unmarked vehicles
Replace Public Works truck (sewer)
Replace Community Development vehicle
· Zoning Code rewrite
· Maintenance Study implementation
· Turf contracts (contracts up 1/2004)
· Capital Improvement Program
Storm Drain and Sewer Projects
Measure M-Street Rehab/Traffic Signal Projects
General Fund support of infrastructure maintenance
Civic Center, Council Chamber, Community Center
Expansion/Renovations
· Internal Service Funds (fully funded)
The Director of Finance and Administrative Services summarized the long-term
maintenance of the City's infrastructure re as follows:
· Public Buildings
Budget includes $250,000 annual transfer of General Fund monies for
capital maintenance and improvements of buildings
Budget contains funding of expansion/renovation projects.
Budget includes $70,000 in depreciation charges in the Office Rental
accounts for future remodel and repair of buildings.
Should be able to maintain with continued General Fund Support.
Budgets balanced with City Council Policy on CIP transfer.
· Streets
Residential rehabilitation funded by General Fund over a seven year cycle
($800,000 annually)
Arterial rehabilitation funded by Measure M and Gas Tax revenues
Funding at level stated in new Pavement Management Program.
Should be able to maintain streets with current funding levels. Long term
concern would be end of Measure M funds (2011).
· Traffic Signal System
Replacement and upgrades funded by Gas Tax, Measure M and grants
($249,942)
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2, 2oo 50
Operations funded by Lighting District ($158,919)
Should be able to maintain system both for operations (with Property Tax
growth), and for capital improvements through Federal, State, and
Measure M funds.
· Sewer System
Operations and Capital Improvements funded through fees charged on
water bill ($431,006).
Sewer fee (based on water consumption started in FY 99-00) funds all
costs in the proposed budget.
Should be able to maintain system with fee and being pro-active in
replacing or relining sewer pipe "hot spots."
· Storm Drainage System
Funding provided for in budget for routine maintenance.
Additional infrastructure would be funded in part by Developer Fees.
$42 million in additional/upgraded drainage facilities identified in Master
Plan. Budget does not address these costs.
Establish fee or future bonding needed to address major needs.
· Street Lighting System
Operations and infrastructure needs funded through Property Tax.
Budget includes current needs and maintains a fund balance for future
capital needs.
Increased electricity costs could be long-term concern.
· Curbs, Gutters, and Sidewalks
The Condition Assessment and Inventory conducted last year estimates
that there is a backlog of $650,000 in needed repairs.
CIP Policy appropriates $100,000 annually to repair. This budget includes
an amount of $250,000, which is same as last budget year and will make
significant progress towards eliminating backlog.
Once the backlog is eliminated, the annual transfer should be able to
maintain the sidewalks with assistance from increased tree trimming work.
The Director of Finance and Administrative Services stated the budget is balanced and
is consistent with the goals established by the City Council. The budget will be brought
forward to the City Council for adoption on June 23, 2003.
Council Member McGill asked about the use of Redevelopment Agency funding for the
Community Center renovation.
The Director of Finance and Administrative Services stated that the City's
redevelopment attorney has confirmed the legality of using funds for the Community
Center renovation.
Mayor McCoy asked about constructing sidewalks on Moody so the children don't have
to walk in the street.
The Public Works Director stated staff has investigated installing curbs, gutters, and
sidewalks in the area, which also involves right-of-way issues and acquiring property.
The approximate cost for the project is $2.7 million.
The Community Development Director stated that staff has been in negotiations with
the County of Orange to acquire the Cypress Acres redevelopment area. The City and
County must come to an agreement on a starting point for sharing tax increment
revenue. This revenue may create a funding soume for some infrastructure
improvements.
Mayor McCoy suggested establishing a street improvement fund for any excess funds
that would then be used for Moody infrastructure,
The Director of Finance and Administrative Services stated that beginning with the
current fiscal year, any excess revenues or reductions in cost can be designated for this
project.
CITY COUNCIL MINUTES JUNE 2, 20(~5 1
Council Member McGill asked about funding for the O.C. Firefighter Memorial by the
City. He stated that Cypress is one of two cities who have not donated any money and
that contribution payments can be spread over several years.
It was the consensus of the Council to contribute $1,000 this fiscal year and to re-
evaluate additional contributions next year.
ORAL COMMUNICATIONS: For Matters Not on the Agenda.
None.
ITEMS FROM CITY COUNCIL MEMBERS:
No items.
ITEMS FROM CITY MANAGER:
No items.
ADJOURNMENT: Mayor McCoy adjourned the meeting at 6:30 p.m., to Monday, June
9, 2003, beginning at 5:30 p.m. in the Executive Board Room, 5275 Orange Avenue,
Cypress, California.
MAYOR OF THE CITY ~ CYPRESS
ATTEST:
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