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HomeMy WebLinkAbout06-13-1978MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA June 13, 1978 The meeting was called to order at 5:00 P.M., by Mayor Vernon S. Evans, in the City Council Chambers, 22 Civic Center Plaza. The following Council members were present: Gordon Bricken, David F.. Ortiz, Harry K. Yamamoto, John Garthe, David L. Brandt, James E, Ward and Mayor Evans. Also present were the following members of Staff: City Manager Bruce C. Spragg, Assistant City Attorney Edward Cooper, Director of Personnel Donald E. Bott, and Clerk of the Council Florence I. Malone. INVOCATION PLEDGE OF ALLEGIANCE Councilman Brandt. Following the Pledge of Allegiance to the Flag, led by Mayor Evans, the Invocation was given by EXECUTIVE SESSION At 5:03 P.M., Mayor PERSONNEL MATTERS Evans declared a recess RECESS for an Executive Session to discuss personnel matters regarding current wage and salary negotiations. The City Manager and the Director of Personnel were requested to participate in the Executive Session. The Council meeting was reconvened at 5:42 P.M., with all Councilmen present. BUDGET REDUCTION OPTIONS City Manager Bruce C. PRESENTED BY CITY MANAGER Spragg stated that with the passage of Proposi- tion 13 (the "Jarvis Amendment", which, in effect, reduced the City's anticipated revenues from property taxes) on June 6, the City can anticipate a tax loss for the next fiscal year of $7,667,000 which amounts to a 63% reduction in tax revenues, or 19% of $39,796,82S, the proposed operating budget for fiscal year 1978-79; and that Santa Ana will have the biggest tax loss of any City in Orange County. He estimated that the City will receive $4,4S7,000 from tax revenue under Proposition 13, and pointed out that these cal- culations are just estimates because there are still many un- knowns, including how the State will distribute its S billion dollar surplus; and that in order to adhere to the City Charter requirement to adopt a balanced budget by July 31, Staff is assuming that the City will not receive any money from the State surplus, although it is probable. In referring to his preliminary report, dated June 2, regarding budget reduction options, Mr. Spragg stated that a number of reduction options had been provided to Council, the total of which almost doubles the 7.6 million dollars which is the estimated minimum need; and that this was done to provide the greatest flexibility in reducing the proposed budget. During his presentation, the City Manager requested Council's direction and guidance to the Staff as he reviewed potential sources of revenue, including a wage or occupational tax, real estate transfer tax, 6% utility user tax, Council Contingency fund, Federal Revenue Sharing funds, the City's Capital fund and increased user fees. He directed Coouncil's attention to possible departmental cuts in services and employees that were included in his June 2 report, representing about a 15% reduc- tion for each department, including 192 positions, 70 of which are presently vacant. CITY COUNCIL MINUTES 219 JUNE 13, 1978 Councilman Ward stated that one of the areas that will help revenues is increased user fees and he requested a more detailed report on that subject. Councilman Brandt agreed. Councilman Brandt opposed the, use of gas tax funds for the operations budget, stating that the major projects are going to have to be completed if we expect traffic to flow. He also stated that he has a difficult time in accepting Federal Revenue Sharing funds for operations. Councilman Garthe agreed that considezation should be given to increasing user fees and he shared Councilman Brandt's opinion regarding the gas tax, funds. It is also his: opinion that the State will be sharing some of its 5 billion dollars with the cities. Councilman Bricken stated the City's Contingency Funds were for emergencies, and that the present fiscal situation qualified in that respect. He opposed the use of General Revenue Sharing and gas tax funds for the operating budget, and favored increased user fees and minimizing impacts on the Capital Improvement Programs, He advocated spreading the impac~ of Proposition 15 so that no one segment of the employees or people have to bear an inordinate burden. Councilman Ortiz stated that the information presented needed a lot of review and study, and it was too early to make any firm decision until the State acts on the S billion dollar surplus. Councilman Yamamoto stated that he was opposed to any new tax, including user fees; that he favored seeking more federal funds because they come from the citizens in the first place. Mayor Evans stated that the real problem will be in deciding what services the people want to forego or reduce. Councilman Ward concurred with previous speakers regarding revenue adjustments, He stated his opinion that a 15% departmental reduction is too large and should be scaled down. Mayor Evans invited comments from the audience. Mike McNulty, 1836 N. Spurgeon, asked how much money was needed to save the 122 positions that may be eliminated and what kind of service reduction would result; would Council establish a statement of reduction priorities regarding the Affirmative Action Program; how the program would apply in the sense of layoffs; does Council plan to fund special administrative costs, travel allowances and conferences that other Councils have "frozen" or eliminated; and what are the possibilities of general salary reductions. At the Mayor's request the City Manager reviewed personnel reduc- tions proposed in each department as contained in the June 2 report. Mayor Evans stated that priorities would not be stated at this time. Lynn Devaney, 1201 South Birch, suggested that the City consider a 52-hour work week to keep regular and CETA employees on the payroll, along with a 20% reduction in other expenditures. Bill Zastrow, 3418 South Lowell, stated that the voters really didn't know what they wanted; that it is wrong to lay off a lot of people and wreck their lives; that the 3 million dollars in the contingency fund, plus not filling the 70 vacancies and maybe a 40% reduction in City programs would maintain the employ- ees for one year until everything settles down and we find out what the public wants. CITY COUNCIL MINUTES 220 JUNE 13, 1978 Mr. McNulty asked for specific job titles that were being proposed for reduction. Mayor Evans responded that the information was not yet available. ADJOURNMENT At 7:10 P.M. the meeting was adjourned to June 14, 1978 at 7:00 P.M., in the City Council Chambers, on the unanimously approved 7:0 motion of Councilman Brandt, seconded by Councilman Garthe. PLORENCE I. MALONE CLERK OF THE COUNCIL CITY COUNCIL MINUTES 221 JUNE 15, 1978