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HomeMy WebLinkAbout2008 04-05 CC CDC ADJ MINBook 90 / Page 83 04-05-2008 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY, CALIFORNIA April 5, 2008 The Adjourned Regular Meeting of the City Council of the City of National City was called to order at 9:04 a.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council members present: Morrison, Natividad, Parra, Zarate. Council members absent: Ungab. Administrative Officials present: Babaki, Baker, Dalla, Deese, Duong, Eiser, Gonzales, Hodges, Juniel, Ladrido, Post, Smith, Stevenson, Williams, Zapata. Others present: City Treasurer George Hood. BUDGET WORKSHOP 1. SUBJECT: FY 2008-09 Preliminary Budget Workshop for City and Community Development Commission. (City Manager) City Manager Chris Zapata, Assistant City Manager Leslie Deese and Finance Director Jeanette Ladrido, using overhead slides, presented an overview of the organizational, economic and fiscal progress and condition of the city and how it related to the proposed 2008-2009 Preliminary Budget for the City. See attached Exhibit 'A.' A recess was called at 10:00 a.m. The meeting reconvened at 10:15 a.m. All members were present with the exception of Council member Ungab. Assistant City Manager Leslie Deese reviewed the concept of a recently completed S.W.O.T analysis. That analysis required each City Department to identify strengths, weaknesses, opportunities and threats as they relate to their individual departments and the city. In addition, departments were asked to identify the impacts that would occur to their programs and department in the event the one cent district tax in repealed. Book 90 / Page 84 04-05-2008 BUDGET WORKSHOP 1. SUBJECT: FY 2008-09 Preliminary Budget Workshop (continued). Assistant City Manager Deese summarized the common themes that emerged from the S.W.O.T. analysis. Department Directors then made brief presentations of their individual departmental analysis and responded to questions. See attached Exhibit 'A.' A recess was called at 12:11 p.m. The meeting reconvened at 12:42 p.m. All members were present with the exception of Council member Ungab. At the conclusion of the departmental presentations there were questions and comments by the Mayor and Council. Mayor Morrison requested that if the district tax is repealed, staff immediately implement necessary budget reductions and not wait until the next fiscal year. PUBLIC ORAL COMMUNICATION None. ADJOURNMENT The meeting was adjourned to the next Regular Meeting of the City Council and Community Development Commission to be held Tuesday, April 15, 2008 at 6:00 p.m., Council Chambers, Civic Center. The meeting closed at 1:30 p.m. Clerk / ec rdin City g Secretary The foregoing minutes were approved at the Regular eeting of June 17, 2008. Mayor / Chairman TAPE RECORDINGS OF EACH CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION MEETINGS ARE AVAILABLE FOR SALE IN THE CITY CLERK'S OFFICE. City Council -Community Development Commission Budget Workshop Fiscal Year 2008-2009 April 5, 2008 City Treasurer George Hood City Clerk Mike Della L._ _ _ _ Citizens _ _ City Council A CIO/Marketing_ Vacant City MFnager's Office Finance Director Jeanette Ladrido IT Manager Ron Williams City Engineer Maryam Babeki Planning Director Roger Post Bldg & Safety Dir(Acting) Tony Garcia Comm Dev Dir Vacant T HR Director Stacey Stevenson Purchasing Agent Brenda Hodges Comm Sery Dir (Acting) Kaseem Baker Librarian Minh Duong F Police Chief Adolfo Gonzalez Fire Chief Rod Juniel Public Works Dir Joe Smith City Manager Overview ■ Financial Management ■ Revenue Tracking ■ Dual Budgets ■ Fee Review ■ Audits s Investment Review s Debt Review City Manager Overview � Revenue Creation & Cost Containment ■ New Projects • Review of Underperforming Properties • Grants ■ Position Review I Purchase Review City Manager Overview ■ Planning ■ Strategic Plan for Development ■ Westside Specific Plan ■ Capital Improvement Program ■ Transportation Plan ■ Open Space & Parks Plan ■ Arts & Culture Facility Plan City Manager Overview ■ Legislative & Regional Program ■ Monitor State Budget ■ Monitor Laws Regarding Development ■ Monitor Regional Development City Manager Overview ■ Employees ■ Customer Service Training ■ Administrative Regulation Updates ■ Employee Development s Communication Programs ■ Finance, Health & Retirement Planning City Manager Overview � Calendar of Major Projects 2008 - Plaza Bonita - Sycuan -Generations - Marina -Citywide Paving Program -Senior Housing City Manager Overview • Current Environment ■ Financial Issues Nationally, Statewide & Regionally • Rising Fuel and Utility Costs ■ Rising Health Care • November Election — District Tax Proposition City Council Priorities ■ Fiscal Sustainability - New Projects that generate and diversify revenue - Efficiency and Innovation - Grant Acquisition - Community & Employee Involvement ■ Service Enhancements - Increased Public Safety - Investment in Community Facilities ■ Focus on Neighborhood Services - Graffiti Abatement - Code Enforcement - Housing Inspection Program - Nutrition Center & Senior Services ■ Technology & Image Enhancements - Website L a) 0 as 0 •... co c ii: Where We Are Today . The City's financial condition continues to be strong —Clean financial audits — Standard & Poors Rating = A- -Continuous review of operating costs & seeking revenue enhancements — Limited Debt — Healthy Reserves 5 Largest Revenue Categories (FY 07/08 Budget) Sales Tax 11.6 million District Tax 8.1 million In Lieu of Vehicle License Fees 4.8 million In Lieu of Sales Tax 3.8 million Property Tax 3.1 million cu a w w CC co 1— cn d as Sales Tax History Sales Tax Revenue supports about half of the City General Fund Operations 25 0 20 15 10 5 0 '03 '04 '05 '06 '07 '08 '09 Sales Tax -Major Business Groups General Consumer Goods 26% Fuel & Service 6% Food & Drug 3% Restaurants & Hotels Autos & 8% Transportation 43% Business & Industry 6% Building & Construction 8% co 7,500 2 6,750 0 6,000 iE 5,250 4,500 3,750 3,000 2,250 1,500 750 0 10 Year History -Major Business Groups ► '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 -4-Autos & Transportation -o- Building & Construction -- Business & Industry -X- Food & Drugs + Fuel & Service Stations -0- General Consumer Goods + Restaurants & Hotels a) c w a) cc x co 1— >1 .r or) 0. 0 a General Fund -Property Taxes T.I. to General General Fund Fund 11064 Tax Increment/Housing 50 ¢ lam):))):);.%I. )[): Psi );)it'I.2 %()'s•): L 83294093L 4444 WAG," 800 Local Control Outside Agencies 200 L o :rii i x co 1- >1 Cu' a 0 L a Tt CO CO N N r r O suoiIliw '08 '07 '06 '05 '04 Net Taxable Values 0 0.5 1 1.5 2 2.5 3 3.5 Billions General Fund Expenditures Expenditures By Type FY 07/08 Budget General Fund Financial Trends 45 40 35 30 25 20 15 10 General Fund Including District Tax ..'' ► r I ► r r ► 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Revenue - with 1 % tax -0- Expenditure Brighter Fiscal Outlook • Continue to fund and enhance restored Public Services • Provide ongoing maintenance of Public Facilities ■ Provide funding for Capital Projects — $1.2 Million Park Enhancement Project — $6.4 Million Street Improvements -Soccer Field Project -Skateboard Park Project 40 30 25 20 15 10 General Fund Without District Tax 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 — Revenue without 1 % tax -A-- Expenditure Tough Decisions Closing the "GAP" without District Sales Tax � Overall Reductions across all City Departments resulting in reduced City Services ■ Reduced Funding for Capital Improvement Projects ■ General Fund Reserves — Finite Amount of One-time Money General Fund Balance FY 07/08 Budget 2.2 i 2.4 2.9 2008-09 Budget Calendar ■ On Track with Schedule ■ Council Review — May/June • Adopt Preliminary Budget prior to June 30 .ig as IL) co 0 .92 1 r Department Overviews ■ S.W.O.T. (Strengths, Weaknesses, Opportunities, Threats) ■� Common Themes ■ Department Presentations — Top 5 Department Accomplishments —Top 5 Department Goals ■ Impact of District Tax Repeal on Department Operations Common Themes - Strengths ■ Team Approach/"One Team" ■ Strong Community Outreach ■ City Council Support ■ Revenue Enhancement ■ Cost Containment ■ Dedicated & Competent Employees Common Themes Weaknesses ■ Uncertain Revenue Outlook -District Tax on November Ballot for Repeal ■ Uncertain Economic Outlook ■ Increasing Operational Costs ■ Infrastructure & Facility Maintenance ■ Budget Constraints s Technology Needs ■ Organizational Development Common Themes Opportunities � Increased Customer Service ■ Continued Outreach to the Community ■ Current Technology Focus ■ City/CDC Merger II Organizational Development ■ Build Legislative Program • November Election —Public Service Stability Common Themes Threats ■ Potential Repeal of District Tax —Service Cuts ■ Increasing Operational Costs ■ Reduced Grant Funding Sources — Uncertainty with State Budget ■ Unfunded Mandated Costs ■ Retaining Exemplary Workforce Department Presentations Human Resources ■ 2007/08 Accomplishments -Three Labor Agreements • Employee Retirement Contribution (MEA) -Organizational Development ■Customer Service Training (office and field) s Sexual Harassment Prevention Training for supervisors (mandatory) - Execution of City Council Staffing Plan ■ 52 positions filled FY 07/08 (to date) ■ 94 positions filled calendar year 07 Human Resources ■ Goals - Promotion of National City as an Employer of Choice - Strengthen Organizational Development ■Training/Customer Service • Performance Evaluations a Succession Planning - Address Compression/Internal Equity Human Resources � Impact of District Tax Repeal - Reduction in Staffing & Service Levels ■ 89% of budget =personnel expenses ■ 78% of General Fund dedicated to public safety —Diminished Response Time/Productivity Levels —Transition to Reduction in Workforce ■ Freeze Vacancies (critical position exception) ■ Position Consolidation -Suspension of Organizational Development Finance s 2007/08 Accomplishments —Clean Financial Reports (City, CDC, Single Audit, Transnet Funds) — Maintained a Credit Rating of A- - Formalized plan to integrate CDC finances into the City's financial database Finance ■ FY 2008/09 Goals —Implement uniform project accounting module to more efficiently track financial costs of projects —Update financial policies and procedures —Implement Community Development Funds in the City's financial structure Finance II Impact of District Tax Repeal —Increased dependency on grant funds that are becoming scarcer and are more labor intensive — Loss of funding for training & development to keep current with financial reporting, i.e., GASB 45 Engineering • 2007/08 Accomplishments -Timely Milestone Accomplishments for Key Projects: Street Resurfacing, Former Library Remodel, Park Beautification Project - Completion of NC Blvd. Streetscape Project and Morgan Square -Safe Routes to Schools: a platform to launch community & media partnership and support Engineering ■ 2008/09 Goals —Complete "Comprehensive Traffic & Transportation Study and Plan" — Establish foundation for 20-year, 10-year and 5-year CIP Schedule by completing/ prioritizing projects through a "Comprehensive Citywide Infrastructure Assessment" — Pursue Smart Growth funds for Streetscape Improvements along 8th Street from Trolley Station to Morgan Square Engineering ■ Impact of District Tax Repeal — Freezing of Unfilled Positions ■Impact CIP delivery ■ Loss of grant pursuit opportunities — Reduction in Staffing & Service Levels — Limitations on Personnel Training & Development Planning f 2007/08 Accomplishments -Housing Element certified by State -Draft of Westside Specific Plan completed -Generations project (498 units) approved Planning II 2008/09 Goals -City Council to adopt Westside Specific Plan -Prepare work program for General Plan Update -Update the Land Use Code Planning Impact of District Tax Repeal — As most of the Department's budget consists of personnel, staff reductions would have to occur — Fewer staff would result in longer response times on applications & inquiries as well as an overall decrease in service levels to the public — Permit tracking and GIS would be in jeopardy — A General Plan update will cost approximately $1M. Where will that come from if the District Tax is repealed? — Required Housing Element actions would be difficult to accomplish Building & Safety ■ 2007/08 Accomplishments -Completed Major Projects ■ .Westfield Plaza Bonita • Plaza City Apartments (affordable homes for seniors) ■ Marina (June 08) -Graffiti Abatement - Strengthen Code Enforcement Building & Safety ■ 2008/09 Goals - Adopt New Building Fee Schedule - Establish Neighborhood Assistance Division to further strengthen Code Enforcement - Technology Upgrades ■ Permit Tracking ■ Citizen Code Requests i Inspection Scheduling Building & Safety ■ Impact of District Tax Repeal — Reduced Staffing & Service Levels — Reduced personnel development & training Redevelopment • 2007/08 Accomplishments — $2.2M property sale for development of Sycuan Marina Gateway — $2.6M loan @ 10`)/0 interest to Constellation Property Group for downtown condos (Centro) — $200,000 grant from USEPA for environmental investigation of Old Town (Westside) Redevelopment • 2008/09 Goals -Complete joint planning, fair share negotiations with Port of San Diego -Complete implementation strategy for Old Town (Westside) - Complete Marina Gateway public improvements Redevelopment ■ Impact of District Tax Repeal — Decreased opportunity to support General Fund for long-term fiscal sustainability —Quality of life efforts jeopardized due to lack of funding for infrastructure and other city services — Reduced support for revitalization projects due to inadequate support for City staff services Economic Development ■ FY 2007/08 Accomplishments —Enterprise Zone Program — CDARS City Investment —Branding Program Economic Development ■ FY 2008/09 Goals —Highland Avenue Community Benefit District (CBD) Formation & Morgan Square District Extension — Launch new business and economic development tools through new City website — Retail Recruitment to Marina Gateway Economic Development ■ Impact of District Tax Repeal - Development Slowdown - Loss of Support Staff & Community Partnerships -Inability to fully implement Signage Program, Arts District, Enterprise Zone Housing ■ 2007/08 Accomplishments -Complete construction of Plaza City Apartments ($3.4M) -Proposed additional funding approval for Habitat project at 1820 G Avenue ($335,000) -Proposed additional funding approval for Habitat project at 1441 Harding Avenue ($197,168) Housing • 2008/09 Goals — Reinstate First -Time Homebuyers Program — Reinstate Housing Rehabilitation Programs — Fund and implement acquisition/rehabilitation program Housing n Impact of District Tax Repeal - No direct impact. Housing Programs are funded through Federal entitlement grants and Local Housing Tax -Set Aside funding resources Public Works ■ 2007/08 Accomplishments — Diesel Emission Replacement Grant ($397,500) —15 New Police Cars outfitted with lights, bars, radios & computers —17 Solar Lights installed throughout the City Public Works ■ 2008/09 Goals — Realign maintenance schedules & policies to improve park conditions —Update HVAC System for General Fund cost savings — Research and Implement Green Project for City fleet & buildings Public Works ■ Impact of District Tax Repeal — No funding for CIP projects —Inability to replace aging City fleet —Customer service — slower response to emergency & work requests — Less resources for maintenance and repairs to parks, public buildings & municipal pool —Inability to comply with State & Federal unfunded mandates City Clerk � 2007/08 Accomplishments — Maintained & expanded computer database of records and documents —Initiated Citywide Record Retention Schedule Update —Successfully assimilated/integrated various CDC functions into workflow City Clerk ■ 2008/09 Goals -Successful implementation of video streaming meetings & agendas - Facilitate introduction and use of new agenda preparation software - Make documents & records available to the public on the Internet City Clerk ■► Impact of District Tax Repeal - Reduced personnel development & training City Attorney ■ FY 2007/08 Accomplishments - Assisted with Marina Gateway, Park Village, Plaza Bonita, straightlining process, Centro, Costco and Home Depot projects - Participated in Code Enforcement activities, including abatement of problematic businesses such as the Park Motel - Worked on preparation of amortization ordinance City Attorney • FY 2008/09 Goals — Continue to provide assistance with projects that will promote the City's fiscal sustainability, e.g., straightlining, JPA for drive-in site, Costco & Home Depot — Revamp code enforcement provisions of the Municipal Code, and pursue new strategies in enforcement, e.g., prostitution injunctions — Take an active role in the implementation of the amortization ordinance City Attorney ■ Impact of District Tax Repeal — Services most likely to be reduced are those which affect the quality of life in the community, such as code enforcement Community Services . 2007/08 Accomplishments — Extended Hours of Newly Refurbished Pool — "Meet the Pharmacists" Day at Kimball Senior Center —Increased resident participation in non - Neighborhood Council events Community Services ■ 2008/09 Goals —Open Space & Parks Plan —Skateboard Park & Soccer Field —Increase Youth Involvement in City Government Community Services s Impact of District Tax Repeal — Staffing levels will have to decrease — Decreased hours at pool —Special events will be eliminated — Decrease in project funding could minimize incentives for involvement in Neighborhood Councils —Open Space & Parks Plan will be put on hold — No new programs Library ■ 2007/08 Accomplishments —Sunday Opening — 7 day a week Library —WINGS (Winners Growing Strong) After - school Program — Computer Classes Library ■ 2008/09 Goals —Set-up Virtual Library, Around -the -Clock Service -Provide Services to Homebound Patrons —Increase usage by Library Fine Amnesty Week Library ■ Impact of District Tax Repeal — Reduction in service hours —Quality of service compromised — Reduced staffing — Reduced funds for collection, databases & technology purchases Fire ■ 2007/08 Accomplishments - Paramedic Program -Conduct Response Time Study -Mobile Data Computers to improve response times and efficiency Fire ■ 2008/09 Goals - Needed improvements to Fire Station 31 - Public Education Program - Acquisition of a Fire Aerial Truck Fire � Impact of District Tax Repeal — Closure of Station 31/Firefighter Layoffs & Retention Issues — Increased ISO rating results in increased insurance rates by 5-10% for homeowners & businesses — Increased property losses — Non-compliance with NFPA 1710 —increased reliance on automatic aid — Increased response times from other fire departments — Potential for other fire departments to charge for responding to National City — Potential for no response east of 1-805 — Lost revenue —AMR and Lower Sweetwater FPD Police • 2007/08 Accomplishments —Hiring of new officers to 92 full-time officers (an all time high for National City) —Roosevelt Security Camera Project —Lower Crime Rate and Calls for Service Police ■ 2008/09 Goals —Increase Critical Response Readiness — Mobile Field Force (MFF) and Command Vehicle — Reenergize Neighborhood and Business Watch Programs — Use Technology as Force Multiplier Police ■ Impact of District Tax Repeal — Elimination of essential programs that affect quality of life — Reduce or elimination of specialized teams ■ Gang Enforcement Team (GET) ■ SWAT II School Resource Officers ■ K-9 — Reduced investigation of violent crimes — Front Counter closed or reduced operational hours — Potential Lay -Offs: Police Officers and Professional Staff Potential Outcomes ■ 2 Scenarios 1. November Repeal -Reduction in Services 2. November -Ability to Develop Long- term Strategies Questions?