HomeMy WebLinkAbout06-24-1989MINUTES OF THE ADJOURNED REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF
SA~4TA ANA, CALIFORNIA
JUNE 24, 1989
The meeting was called to order at 9:08 a.m. in Room 831, City Hall,
20 Civic Center Plaza, by Acting Mayor Pro Tem Ron May. Councilmembers
present were Patricia A. McGuigan, Rick Norton, and Miguel A. Pulido.
Also present were City Manager David N. Ream, City Attorney Edward J.
Cooper and Clerk of the Council Janice C. Guy.
Councilmembers John Acosta, Daniel E. Griset, and Mayor Dan Young were
absent.
Also present were Executive Director of Public Works Agency David Grosse,
Library Director Rob Richards, and members of the City's Budget Team.
COUNCIL STUDY SESSION
1 989-90 BUDGET
The City Manager reviewed the history of the budget format tracing its
evolution from a line item to a program budget to a modified line item
budget.
Library Director Rob Richard explained line items contained within the
four functional areas of the Library budget including Adult, Children's
Support and Extension Services. He also responded to Councilmembers'
questions.
Councilmember Norton inquired into the terms and conditions of the City's
contract with the Bowers Museum Corporation. The City Attorney indicated
the City had a contractual obligation to provide approximately $1 million
dollars for maintenance of the Museum for the next l0 years after which
such funding would decline at the rate of 10% per year, with the
termination of any City obligation for funding in the 21 st year.
Councilmember Norton inquired as to whether the contract might be
amended. The City Manager responded that inquiries could be made of the
Corporation Board, and that a decision relative to further investment in
the Museum and proposed Museum District was timely.
Councilmember My indicated that at the current time the Museum was a low
priority for him.
Councilmembers discussed the current financial condition of the City.
CITY COUNCIL MINUTES 182 JUNE 24, 1989
Councilmember Norton inquired as to the amount of money owed to the City
by the Redevelopment Agency, notin9 the scheduled repayment for fiscal
year 1989-90 was not sufficient to repay the 9% interest on the loan. The
City Manager discussed redevelopment investment theory, indicating that
monies not currently being repaid to the General Fund were reinvested in
redevelopment projects. He noted the ratio of reinvestment to repayment
was a policy decision of the City Council.
The City Manager outlined several of the problems facing the City, statin9
all City service areas were underfunded and affirming the Administration's
support of efforts to raise more funds to meet service needs.
Councilmember May inquired into the City's reserve fund; the City Manager
responded the reserve fund ratio was not a matter of publication. He also
reviewed his efforts to decrease City expenditures over the past few
years.
The Manager explained the priorities with respect to meeting obligations
of the Redevelopment Agency such as allocating funds to low and
moderate-cost housing, debt service, and other such items, and indicated
repayment of Agency debt to the City was the lowest priority.
Councilmember Norton inquired as to whether it would be possible to charge
the operating expenses of the Museum to the Redevelopment Agency. The
Manager indicated Agency expenditures were limited to capital items. He
also explained that the Agency activity was currently in transition from
urban renewal to repayment and 1991-92 was projected as the year when the
tax increment would significantly increase.
Finance Director Rod Coloma noted that although the City's budget was
meeting the City's basic needs, reserve funds balances should be increased
to protect the City.
ADJOU~J~MENT - At 12:00 p.m. to 9:00 a.m., July l, 1989, in Room 831, City
Hall, 20 Civic Center Plaza.
C~ln~ce C. Guy
erk of the Council!-- ·
CITY COUNCIL MINUTES
183 JUNE 24, 1989