HomeMy WebLinkAboutMinutes - May 26, 2015 - CC, Special MeetingCITY OF AZUSA
MINUTES OF THE SPECIAL
MEETING OF THE CITY COUNCIL
' TUESDAY, MAY 26, 2015 — 7:55 P.M.
Mayor: Joseph Romero Rocha
Mayor Pro -tem: Edward J. Alvarez
Councilmember: Angel A. Carrillo
Councilmember: Uriel Edward Macias
Councilmember: Robert Gonzales
City Clerk: Jeffrey Lawrence Cornejo, Jr.
City Treasurer: Arthur M. Vasquez
The City Council, of the City of Azusa, met in special session at the above date and time in the Azusa Light & Water
Conference Room, located at 729 North Azusa Avenue, Azusa; CA 91702.
A copy of the Notice of said Special Meeting was delivered to the Mayor and Councilmembers on May 21, 2015, by
Administrative Technician Juarez and e-mailed by Deputy City Clerk Hernandez.
Mayor Rocha called the meeting to order at 7:55 P.M. Call to Order
ROLL CALL: Roll call was taken by City Clerk Cornejo. Roll Call
PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
ABSENT: COUNCILMEMBERS: NONE
' ALSO PRESENT Also Present
Elected Officials: City Clerk Comejo.
Staff Members: City Manager Butzlaff, City Attorney Martinez, Police Chief Gonzalez, Finance
Director Paragas, Information Services/Library Director Graf, Economic and Community Development
Director Christiansen, Interim Public Works Director/City Engineer Bobadilla, Human Resources and
Risk Management Director Ayala, Recreation and Family Services Director Jacobs, Utilities Director
Morrow, Administration and Financial Services Manager Johnson, Budget Analyst Lam, Public
Information Officer Quiroz, Assistant/ Deputy City Clerk Hernandez.
PUBLIC PARTICIPATION Public
Participation
Mr. Jorge V. Rosales submitted written comments to the City Manager regarding the budget.
CITY COUNCIL KEY PRIORITIES AND OBJECTIVES FOR FISCAL YEAR 2015-16 (FY Council's
2015-16). Priorities and
Objectives for
City Manager Butzlaff presented the item stating that on April 27, 2015, Council held a Goal Setting FY2015-16
Workshop in which they chose six (6) areas to set specific goals and objectives for the upcoming fiscal
year. The areas were on (1) Economic Development, (2) Financial Sustainability, (3) Environment, (4)
'Planning/Development, (5) Infrastructure, (6) Public Services. Staff put in place the objectives to
implement those goals, which were reflected in the proposed budget for FY2015-16.
BUDGET REVIEW WORKSHOP FISCAL YEAR 2015-2016. Budget
Workshop
Mayor Rocha requested support from the Council regarding the creation of a Youth Council; light
discussion was held regarding the cost and the Azusa Unified School District (AUSD) taking the lead on Discussion
creating a Youth Council; no action was taken as the item was not on the agenda. Council requested that,
an item regarding current Commissions be brought to a future meeting for a comprehensive review.
City Manager Butzlaff introduced the FY 2015-16 Budget, which was done on the Zero Based Budget T. Butzlaff
Process in order to work within the current financial means; it was a team effort, every department's Comments
proposed budget was reviewed in detail, and approximately $500,000 were able to be excised from the
expenses.
Finance Director Paragas presented the General Fund Budget and Capital Improvement Budget for FY S. Paragas
2015-16. Presents Budget
FY 2015-16 General Fund Budget: General Fund
Budget Background:
Staff will maintain the same service levels as requested by Council. A balanced budget was reached
even though it was impacted by the increase in personnel costs, historic low interest rates, the
Consumer Price Index (CPI), the drought measures imposed by the State, the State Controller Assets
Transfer Order, the State increase in minimum wage and the Public Employee Retirement System
(PERS) rate increase; not included in the proposed budget was the on-going employee union groups
negotiations. The increase in property values and the Rosedale Development assisted in balancing
the budget.
Revenues:
Projected increases:
Property, Sales and Transient Occupancy Tax by 4.0%, 3.6% and 33.3% respectively.
Projected decreases:
License and Permits by 4.8% due to Rosedale Development slowing down, Utility Users Tax by
2.4% due to the current drought and Service Fees of 7.2%.
The overall revenue change reflected a 0.35% increase.
Projected Expenditures:
$36,692,190
Cost of Living Adjustments (COLA)
$250,000
Ca1PERS Cost Increase
370,000
Fire Service Contract
56,000
Palm Tree Trimming
38,000
Two, (2) Police Vehicle Replacement
76,000
Changes in Personnel
144,000
One-time Studies for Fees and Charges Cost
Recovery, and a Community Survey
60,000
Projected Decrease in expenditures:
Off year Election Cost
-$78,000
Transfer to Liability Fund/Risk Management
-700,000
Expiration of Price Club Agreement
-225,000
Total Expenditure Change reflects a decrease
of -$75,000. Unfunded Requests were Capital
' Improvement Project for Ficus Tree Removal/Palm
Tree Installation at City Hall, Capital Outlay for
Information Technology various software and
hardware, Police motorcycle replacement, and
changes in personnel positions, which included
Administration, City Clerk, Library, Police and
Recreation and Family Services Departments.
Budget Summary
Projected Revenues and Transfers In
$36,692,190
Less Operating Expenses and Transfers Out
-36,305,075
Projected Preliminary FY 2015-16 Balance
387,115
Less Discretionary and One Time Expenses -
Capital Outlay/Equipment/Studies
-136,300
Proposed FY 2015-16 General Fund Balance
$250,815
Three -Year Forecast:
FY 2015-16 FY 2016-17 FY 2017-18
Revenues $36,692,190 $37,297,830 $37,731,835
Expenditures $36,441,375 $36,989,745 $37,263,660
Issues to be considered:
Current Use Fees and Charges: cost recovery study to be performed.
Negotiations with Employee Bargaining Units: PERS contributions, retirement medical benefits, new
hire benefits.
Anticipated Retirements Payouts: Annuities
Reserve Buildup: based on the new policy to help build up a reserve
'Reduction of Unfunded Liabilities: retirement pensions, post employment expenses such as medical.
FY 2015-16 All Funds Summary:
All Funds
The current service levels will be maintained, a balanced budget with a surplus of $250,815, which Summary
includes increased staffing positions. The projected surplus of $648,300 as of June 30, 2015; staff
recommends allocation of 67% for Catastrophic Reserves and 33% for Budgetary Stabilization
Reserves.
05/26/2015 PAGE TWO
Total FY 2015-16 Budget: $167,559,730 and Total Budget Summary Adjusted: $167,656,270
Fund Summary:
General Fund 36,441,375
Special Revenue Funds 23,569,680
Capital Projects Funds
1,031,905
Debt Service Funds
10,320,320
Enterprise Funds
80,402,350 (adjusted)
Successor Agency Funds
4,786,595
Internal Service Funds
11,104,045
Changes in personnel positions on non -funded General Fund,
and Family Services and Utility Departments.
Capital Improvement
Total Proposed Budget
$19,312,310
Funding Sources:
Grants-Other/Charge
9,522,010
Water Funds
4,523,285
Proposition C
1,520,000
Electric Funds
987,715
which included Public Works, Recreation
Measure R
871,430
Surface Transportation
Local Program (STPL)
820,000
Community Development
Block Grant (CDBG)
483,370
Energy Efficiency
252,500
Utility Mitigation
120,000
Sewer
110,000
Consumer Services
47,000
Public Works Endowment
45,000
Assembly Bill AB939
10,000
Major Projects being funded:
New: Water Transmission Lining Project, Alosta Avenue Street Improvements, Engineering
Water Replacement, Heating, Ventilating, and Air Conditioning (HVAC) Replacement at Senior
Center, Blending Pipe to Heck Reservoir.
Carryover: Azusa Intermodal Transit Center, Main Replacement, Reservoir Rehabilitation
' Program, Azusa Avenue Street Rehabilitation.
Unfunded Projects:
New: Sierra Madre Avenue Street Improvements, Ficus Tree Removal/Palm Tree Installation at
City Hall.
Carryover: Foothill/Alosta Traffic Signal, Durrell House Improvements, North Recreation Center
Fire Alarm and Emergency Lighting.
ADJOURNMENT
It was consensus of the City Council to adjourn the meeting.
TIME OF ADJOURNMENT: 9:10 P.M.
NEXT RESOLUTION NO. 2015-C24.
05/26/2015 PAGE THREE
Capital
Improvement
Adjourn