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HomeMy WebLinkAbout2003 - MINUTES - 5/14/2003 STUDY SESSIONSTUDY SESSION CITY OF PALM SPRINGS MAY 14, 2003 CONVENE IN OPEN SESSION A. Call to Order-Large Conference Room-Hodges absent. B. Flag Salute C. City Attorney Report on Matters Discussed in Closed Session-See Page 2 of Agenda this date. D. PUBLIC COMMENTS - None E. COUNCIL COMMENTS/QUESTIONS/REPORTS Councilmembers commented on various civic functions attended. F. CITY MANAGER COMMENTS - None G. STUDY SESSION 1. BUDGET UPDATE Director of Finance &Treasurer reviewed a power point presentation, copy attached; and in answer to questions stated that property tax had increased 7% this year; that the building and planning fees increase is looking favorable; and that approximately one-half of the budget is credited to public safety. Mayor stated there is concern with the growing separation between revenue and expenditures; and that structural changes will need to be made. Director of Finance & Treasurer stated that the rates for PERS are set as actuarial shortfalls; that one component is based on the investment earnings; that it was estimated that the earning would be 8.5%; that did not happen and that to make up the difference a higher percentage was levied on the Cities. Mayor stated that in 2004-05 the rate is estimated at a 50% increase for retirement benefits; that with the COLA’s of 2 – 4 % and no growth in revenues there will be no parity. Director of Finance & Treasurer stated that the total PERS cost is $4.2 million; that if the rates do go up 50% the increase will be $1 to $1.5 million. Mayor it seems that they determine their own fates and that they are their own authors. City Manager stated that the proposed budget does contain personnel cuts of $1.4 Million; that at this time there are no further cuts recommended; that the budget does need to be reviewed in a 2-year cycle; that next year all bargaining units will be up for negotiations; that it is requested that the balance of the deficit filled by a transfer from Fund Balance; that the transfer will allow the City to proceed through the next Fiscal Year so that all dynamics can be considered. Oden questioned with the cuts, how many would be left in streets and traffic divisions. City Manager stated there is only one deleted position; that some are reclasses; that there are 14 currently in the division; that 5 are eliminated and there will be 9 remaining. Director of Finance & Treasurer stated that the overall savings from cuts in personnel will be greater than indicated, that one of the reasons is that more services will be privatized. Oden stated that in the past the City has privatized many services; that in the end the same services are brought back to be filled by the City; and that it is not clear that the privatizing system of services really works. Reller-Spurgin stated that the City privatizes services to save money, but over the life of a contractual service the price increases resulting in being able to perform the service by the City at a cheaper rate; and added that the Franchise Fees do need to be reviewed to possible increase revenues; that it may behoove the City to start transport services by the Fire Department and that both should be studied. Mayor stated that admissions tax is possible revenue along with an increase in property tax; that there are some future revenue streams with the new boxes being built and with the development of Section 20. City Manager stated that the long-term fix will come in the 2004-05 fiscal year budget and all possible alternatives will be on the table. Mills stated that the staffing issues of planning, building and engineering should not be deleted or delayed in filling vacancies; that these positions do produce revenue and that in review of the weekly report from Planning the vacancies are becoming an issue. City Manager stated that the PSEDC did recommend some additional positions to be added to those departments; and that the next meeting the PSEDC will be present for a report regarding the issue and the concept of E-Government will also be introduced. Oden stated that if fees are increased in Building & Planning, the City will need to show improved service and until all issues in those departments are addressed those proposed increases should be held. Mayor stated that is the costs are associated with doing business, then the developer should pay the cost. Director of Finance & Treasurer stated that the PAL and DARE Officers are proposed to be cut, but refilled with non-sworn personnel; that donations have been allocated for the positions for one year. Mayor clarified that $500,000 has been earmarked from the Parking Fund for the streetscape of the DFP. 2. BUDGET TASK FORCE REPORT & RECOMMENDATIONS Chairman stated that it is the unanimous vote of the Task Force to follow the City Managers recommendation and questioned the Council if the Task Force should remain solvent to address the future budget. Mills stated that the Council was not expecting answers for this years, but that the Council is looking for policies and recommendations for the future; that the City needs to address the Fiscal Year 2004-05 budget now and that it is requested the Task Force stay together and focus on the budget issues Oden stated that the Task Force should continue on the job to assist the Council with specific recommendations and guidelines within the next 6 months. Council concurrence that the Task Force continue in addressing budget issues for fiscal year 2004-05 with recommendations to be presented to the Council within the upcoming 6 months. 3. QUIMBY ACT ORDINANCE Director of Planning & Zoning review handout, copy attached. Mills stated that the Urgency Ordinance should be introduced at the next regularly scheduled meeting; that the longer the City waits, the less financial support will come in. Reller-Spurgin and Oden stated that the materials concerning the Act had just been received this date and that it is not enough time to study the issue and that with the possible increase of taxes the entire issue should be thoroughly discussed and reviewed and proceed in the usual fashion, not fast-tracked. Mayor stated that the item should come forward at a regular meeting due to the limited support of urgency findings. ADJOURN