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HomeMy WebLinkAbout07-16-1975MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA July 16, 1975 The meeting was called to order in Room 851, CitM Hall, 20 Civic Center Plaza, at 4:40 P.M. by Mayor John Garthe, proper notice and posting having been accomplished, with affidavits on file in the office of the Clerk of the Council. The following Councilmen were present: David F. Ortiz, Harry K. Yamamoto, Vernon S. Evans, and Mayor John Garthe. Councilman Gordon Bricken arrived at 4:42 P.M.. Councilmen David L. Brandt and James E. Ward were absent. The following staff members were also present: City Manager Bruce C. Spragg, City Attorney Keith L. Gow, Director of Finance Lawrence Shaffer, Director of Public Works Ronald Wolford, Police Chief Raymond C. Davis, and Clerk of the Council Florence I. Malone. PROPOSED BUDGET The City Manager FISCAL YEAR 1975-76 distributed a report of the current status of the Budget delibera- tions, outlining two Budget balancing options, in considera- tion of the Council's action on July 14, placing a S% Utility User Tax ordinance on first reading, and based on the assump- tion that the public safety program would be funded for two fiscal years with no increase in tax rates during the second fiscal year. Option One provided for a $% Utility Users Tax and a 28¢ increase in the property tax for the fiscal year 75-76, and a 17~ increase for 76-77. The yearly cost to the average tax payer would then be $28.26 and $28.96, respectively. Option Two provided for no Utility User Tax and a 40¢ property tax for fiscal year 75-76, with a 39¢ increase for 76-77. The yearly cost to the average taxpayer would be $30.00 and $32.17, respectively. If the 5% Utility User Tax were adopted, a 10~ increase in the property tax would be necessary, and there would be a deficit in the 76-77 year of $88,500~00. The yearly cost to the average taxpayer would be $19.60 for 75-76, and $33.14 for 76-77. Councilman Bricken stated his opinion that the Budget process was antiquated, which tended to obfuscate the facts Council needed to make the decisions, and to add to the confusion; that it does not permit Council to look back in time or to look forward into the future for more than one year. He added that at the current rate, in less than five years, the City would be spending twice as much per capita as it is today, withan operating Budget of $50 million; and that would be impossible with the current system of revenue. CAPITAL RESERVE Councilman Bricken's motion to eliminate the 1975-76 proposed Capital Reserve, in the amount of $203,000, was seconded by Councilman Evans, and carried ~4-1) with Councilman Yamamoto dissenting. CITY COUNCIL MINUTES 309 JULY 16, 1975 FUNDING OPTIONS Mr. Tom McMichael, representing the Board of Realtors, stated that the Board favored a combined use of the Utility User Tax and property tax increase, rather than a 40, 50 or 60 cent property tax increase with no Utility User Tax, to fund and balance the Budget. He suggested further that during the coming year the City attempt to sell some of its $1.5 million worth of surplus property to raise additional funds. The City Manager stated that most of the surplus property was located on First Street, and that any moneys derived from sales would have to go into the Gas Tax Fund, rather than the General Fund. Ha added that a proposed ordinance would soon. be submitted to Council to help promote the sale of those properties. TRAFFIC SIGNAL A member of the audience DYER AND HALLADAY requested Council to reconsider its decision to postpone the installa- tion of the traffic signal at Dyer and Halladay, in the best interests of business and industry in that area. The Director of Public Works suggested that work hours be staggered until such time as the signal could be installed. COURT SYSTEM Mr. Joe Gilmaker stated that the City departments are the finest; that changes in the court system would lessen the police problem, and that he would sup- port a 20 to 25 cent property tax increase. ORDINANCE NS-1268 AN ORDINANCE OF THE 3% UTILITY USERS TAX CITY OF SANTA ANA ADDING ARTICLE VI, TO CHAPTER - SS OF THE SANTA ANA MUNICIPAL CODE TO BE KNOWN AS THE UTILITY USERS TAX CODE was read by title only, full reading having been waived, on the unanimously approved (S-0) motion of Councilman Bricken, seconded by Mayor Garthe. The ordinance was placed on first reading on motion of Councilman Bricken, seconded by Mayor Garthe, and carried (4-1), on the following roll call vote: AYES: Bricken, Garthe, Ortiz, Evans NOES: Yamamoto ABSBNT: Brandt, Ward Councilman Yamamoto stated that he was opposed to the ordinance because he believed it should be the primary method of funding; and that he would favor a 5% Utility Users Tax with only a 10¢ property tax increase. CA 65B ADJOURNMENT Evans, seconded by Councilman Ortiz. At 6:05 P.M. the meeting was adjourned on the unanimously approved motion of Councilman FLORENCE I. MALONE CLERK OF THE COUNCIL CITY COUNCIL MINUTES 310 JULY 16, 1975