Minutes 2004-05-03
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MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
CYPRESS CITY COUNCIL
HELD
May 3, 2004
The adjourned regular meeting of the Cypress City Council was called to order at 5:03
p.m. by Mayor Keenan in the Board Room, West Wing of City Hall, 5275 Orange
Avenue, Cypress, California.
PRESENT: Council Members McGill, Sondhi, Mayor Pro Tem Piercy, Mayor Keenan
ABSENT:
Council Member McCoy
Also present were City Manager, Director of Finance and Administrative Services,
Assistant City Manager, Acting Public Works Director, Chief of Police, Recreation and
Community Services Director, Assistant Community Development Director, Finance
Manager, and City Clerk.
ORAL COMMUNICATIONS:
None.
WORKSHOP SESSION:
Review of Fiscal Year 2004-2005 Annual Budqet
The Finance Manager stated that the budget presented to the City Council is balanced.
He stated that the budget consists of three entities: the Redevelopment Agency, the
City, and the Recreation and Park District, and is a four to five month process that
involves all of the departments.
The Finance Manager stated that considerations in the development of the budget
include City goals, the Capital Improvement Plan, financial restraints, State budget
concerns, and City Council direction. Assumptions that were made in the preparation of
the budget were: maintaining the general fund balance and contingency, which is 25%,
approved City goals, adopting the Capital Improvement Plan, limiting operating
expenditure increases for the current year on a percent basis, and maintaining focus on
infrastructure.
The Finance Manager stated that the budget is just over $30 million, which includes the
CIP, debt service, and the operating budget. This represents a decrease of $1 million
from the prior year primarily due to a $2.4 million decrease in the Capital Improvement
Program. Proposed personnel costs have increased 4.8 percent, which is $650,000. He
stated that the operating budget has increased approximately 4.2 percent and that
personnel costs are 2/3 of the operating budget. He stated the revenues and
expenditures for the general fund budget are close to the same amount as the currant
year. The slightly higher amount is due to a one time use of excess revenues for the
civic center.
The Finance Manager stated that future revenue threats include State takeaways,
business relocations, and mandated costs, such as raising of the minimum wage.
He stated that the Recreation and Park District budget includes the usage of
accumulated monies from the current year to fund some capital improvement projects.
He stated that general fund support will be needed for the Recreation and Park District
budget in the amount of approximately $62,500.
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CITY COUNCIL MINUTES
MAY 3,2004
The Finance Manager stated that the Redevelopment Agency activity this year is low in
comparison to previous years, primarily because there is no rollover debt. He stated
that the estimated revenues include the third year of the ERAF shift in tax increment
monies.
The Finance Director stated that the City will go forward with its budget even though the
State budget has not been adopted yet.
The meeting was recessed at 5:28 p.m.
The meeting was reconvened at 5:40 p.m.
The Finance Manager stated that revenue projections are based upon analysis and
reviewing individual sources, current year revenue receipts, relevant trends,
development activity, and other external and internal analysis, which includes State
impacts. The City is conservative in its approach to revenue projections. Major revenue
impacts mostly involve the State, which includes: ERAF shift for City, District and
Redevelopment Agency, the vehicle license fee, the "triple flip" sales tax backfill with
property tax, and property tax for Prop 13 growth. He stated that sales tax growth is
modest at approximately $75,000, property tax is about 9% and the transient
occupancy tax has risen approximately $100,000. Decreases have occurred in
investment earnings due to a lower portfolio balance and market rates.
The Finance Manager stated that personnel changes include the reclassification of the
Principal Engineering Aide to Engineering Assistant, reclassification of the Housing
Coordinator II to Redevelopment Manager, funding of a second Recreation Supervisor,
and the elimination of two part-time positions in the Recreation and Community
Services Department.
The Finance Manager stated that other noteworthy budget items include:
· Costs associated with November 2004 election
· Funding of public information/education campaign
· Increase in crossing guard contract
· Decrease in Supplemental Law monies available to fund police officer positions
· Police Property Audit
· West-Comm Joint Power Authority costs
· Increased Community Development funding for marketing and appraisal study
· Contract custodial services at Library, Yard and Kids Corner
· Closed Circuit TV Inspection
· Traffic Mitigation Study
· Turf contracts
· Increased maintenance of Stanton Channel Berm
· Capital Outlay
o Replacement of six marked cars/two motorcycles (Police)
o Replacement of Combination Sewer Cleaning Truck
o Replacement of four Y2 ton pick-ups, one flatbed truck and one utility pick-
up (Maintenance)
· Internal Service Funds (fully funded)
The Finance Manager stated that infrastructure long term maintenance includes:
.
Public buildings, streets, signals, sewer, storm drain, street lighting, and
sidewalks
o Budget includes first year of recently approved seven year CIP Plan.
o Sufficient resources and appropriations exist in budget for ongoing
operating activities associated with infrastructure systems.
o Storm drainage system is the one major infrastructure item without any
dedicated revenue sources. Significant improvements have been
identified in the Master Plan but are not addressed in this budget.
o Sidewalk/tree trimming contract remain at the same level.
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CITY COUNCIL MINUTES
MAY 3, 2004
The Finance Manager stated that the budget is balanced and is consistent with City
goals. The budget will be presented to the City Council on May 24,2004 for adoption.
Mayor Pro Tem Piercy asked that when the Maintenance vehicles are replaced, staff
look into the purchase of alternative fuel vehicles.
The Director of Finance and Administrative Services stated that an electric vehicle will
be used by Landscaping around City Hall that will be funded by AQMD AB 2766.
Council Member McGill stated that he would like staff to evaluate future police staffing
with the growth and service area along Katella Avenue.
ORAL COMMUNICATIONS:
None.
ITEMS FROM CITY COUNCIL MEMBERS:
None.
ITEMS FROM CITY MANAGER:
None.
ADJOURNMENT: Mayor Keenan adjourned the meeting at 6:23 p.m., to Monday, May
10, 2004, beginning at 5:00 p.m. in the Executive Board Room, 5275 Orange Avenue,
Cypress, California.
~~
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CLERK OF THE CITY OF CYPRESS
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