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