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HomeMy WebLinkAbout051607 CC Budget Workshop 1 I, I MINUTES OF A BUDGET WORKSHOP MEETING OF THE TEMECULA CITY COUNCIL MAY 16, 2007 The City Council convened in a budget workshop meeting at 10:00 AM,. on Thursday, May 16, 2007, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California, There were no Closed Session items, Present: Council Members: Comerchero, Edwards, Naggar, Washington, Roberts Absent: Council Member: None FLAG SALUTE The flag ceremony was presented by Council Member Comerchero, PUBLIC COMMENTS No comments. CITY COUNCIL REPORTS No comments. COUNCIL BUSINESS 1 Review of the orooosed FY 2007-08 Preliminarv Ooeratino Budoet RECOMMENDATION: 1.1 Review and discuss the Proposed FY 2007-08 Preliminary Operating Budget, and provide direction to staff as appropriate. By way of PowerPoint presentation, City Manager Nelson rel/iewed the proposed Operating Budget, highlighting main components such as the following: · Total Projected Proposed Revenues $65,664,620 o 1.2% Increase · Total Proposed Expenditures $62,501,885 o 1.1 % Increase · Fund Balance Designated for Economic Uncertainty o Increase Undesignated Reserve Fund to $12.5 million which equates to 20% of the General Fund Expenditure Budget . Public Safety o $2.87 million increase o Ten additional sworn officers for a total of 111 sworn officers, exceeding the City's one officer per every 1,000 residents at (1 :882) o Three additional Community Service Officers - higher level of visual police presence o Temecula Citizens Corps (TCC) Program o Citizens Action Patrol (CAP) Program o Wolf Creek Fire Station will be opened August, 2007 R:IMinutesl051607 1 I I o 4.0 staffing level on all City Fire engine teams will continue being funded . Revenue Excess Sharing in Temecula (REST) o Contribution will increase to $8 million · City's contribution to supplement the Measure C Special Tax · Additional Budget Highlights o One new Authorized Human ServiceslTeen Manager o Conversion of one fulltime Park Ranger oRe-classified five positions o Temecula Outreach Program - Town Hall meetings, Television Broadcasts, and Newsletters o Commit $1,327,364 for Capital Improvement Projects (CIP) · Five-Year General Fund Project o Projecting revenues will balance with City's expenditures in five-years City Manager Nelson thanked the Departments for their team effort and efficiency of completing these budget documents. In response to Council Member Comerchero, City Manager Nelson relayed that ever year staff has been able to improve the level of analysis for the five-year General Fund Projection; that revenues are projected conservatively; that based upon revenues, staff identifies what department needs would be for the next five-years; that if revenues come in higher than expected, staff would have the ability to adjust accordingly on the expenditure side; and stated that staff's goal would be look out 60 months ahead. Offering more information, Director of Finance Roberts stated that staff does conservative budgeting as the years go out, noting that there would be less information as it would pertain to sales tax and potential hotels; and that more information would be available as the year approaches. Director of Finance Roberts also advised that due to the slow down of incoming fees, staff had to reduce the revenues for user fees mid year and will keep them constant for the following year; advising that staff's intent would be to fund the vacancies in the budget in the following year. For Council Member Comerchero, Director of Finance Roberts advised that staff would not have an analysis with revenues with regard to the addition of room rates that were added to hotels. Referencing increased Transient Occupancy Tax (TOT), Mayor Washington relayed that it would be appropriate that the City share a percentage with the Convention of Visitor's Bureau for its portion of increased tax. Appreciating staff for their conservative approach with regard to the five-year General Fund Projection, Mayor Pro Tem Naggar commended staff for their efforts and noted that his intent would be to maintain a conservative approach. City Manager Nelson advised that every operation and maintenance impact for the Capital Improvement Program (CIP) over the next five-years would be incorporated within the five-year projection plan; noting that this has been the process for several years. Mr. Nelson also relayed that there would be outstanding projects in the Capital Improvement Program including the ice- rink feasibility study. Director of Finance Roberts noted that staff is working on accruing the highest rate possible on all reserve accounts. R:IMinutesl051607 2 I I I Explaining the Revenue Excess Sharing in Temecula (REST) Program, Council Member Edwards thanked the City Council for making it a priority. For Council Member Roberts, City Manager Nelson relayed that the Indian Gaming monies will fund officers for the area adjacent to Pechanga; and that as far as the extension of hours for the library, it was noted that this item has been included in the budget. Mayor Washington stated that it would be appropriate to expand the hours of the library on Sunday and Saturdays by three hours. Relaying the importance of Economic Development, Mayor Washington advised that Temecula businesses should be part of the Temecula Outreach effort; suggested that a strategic plan effort to target Business Retention and Business Attraction be reevaluated; noted that it would be his opinion, as well as Council Member Roberts' opinion, that staff bring Business Retention and Business Attraction efforts in-house; and that combined efforts with The Chamber of Commerce and the Convention of Visitors Bureau would benefit Temecula Valley as a whole. Echoing comments made by Mayor Washington, Council Member Roberts stated that he has noticed a decline with Business Attraction and Business Retention efforts; noting that it would be his opinion that having an in-house effort would benefit the City more than what is currently proposed. Mr. Roberts also relayed the importance of the City's business community knowing that the City stands behind them and advised that he would be available to help in any way. Mayor Washington queried if it would be in the City's besJ interest to allocate the $60,000 intended for Southwest Economic Alliance to an in-house effort. Referencing Southwest California Economic Alliance, Assistant City Manger Adams advised that the Alliance would fall under the umbrella of the Economic Development Corporation (EDC) of Southwest California; that if the City were to withdraw from the Alliance, the City would also be withdrawing from the EDC, advising that they are one entity; and that if the Alliance were to incorporate by the end of the fiscal year, it would not longer be part of the EDC. In response to Council Member Edwards' question, Mayor Washington noted that it would be necessary to budget for an in-house person to fill the position if it were the desire of the Council to move forward with an in-house effort with regard to Business Retention and Business Attraction. At this time, City Manager Nelson advised that currently $20,000 is set aside in the budget to create an economic strategic plan with regard to Business Retention and Business Attraction; that if it were the desire of the Council, a proposal could be forwarded to the City Council as to how an in-house effort program would be brought in-house with regard to staffing; and advised that currently $66,250 would be allocated to the Alliance and EDC. Because the largest employers are a part of the Economic Development Corporation (EDC), Council Member Edwards proposed that the City, at the minimum, remain as a member of the EDC. Assistant City Manager Adams relayed that electives that attend EDC Board meetings would not have the ability to retain a vote. R:IMinutesl051607 3 I I I Echoing comments made by Council Member Edwards, Council Member Comerchero concurred that withdrawing completely from the EDC would send a negative message to the business community, but noted that he would be in favor of the City being a dues paying member; agreed that an in-house retention effort could be better assessed in-house, but did express concern with losing the talents of Executive Board Member Field with regard to Business Attraction; and noted that more discussion with this regard would need to be made. Understanding the concern of Council Member Comerchero, Mayor Washington noted that it would be his opinion that due to Southwest California Economic Alliance's responsibility to Temecula, Murrieta, Lake Elsinore, and Riverside County, it has been restrained in its efforts to focus specifically on Temecula's needs. For the following year's budget, Council Member Comerchero requested that summary details for revenue and expenditures reflect the percentage change from year to year - line item by line item. Referencing the EDC meetings, Mayor Pro Tem Naggar noted that staff should always attend its meetings, but that if there would be no benefit to having a partnership that there would be no reason to insert City funds; and agreed that dues should be paid to remain a member. Mr. Naggar also noted that he would agree with Mayor Washington that Temecula Outreach should be to the City's current businesses and relayed his full support in bringing Business Retention and Business Attraction efforts in-house. Relaying his support of providing an in-house representative to work for the City, Council Member Roberts expressed concern with completely withdrawing from the Alliance and preferred retaining the Alliance membership for another year. Concurring with Council Member Roberts, Council Member Edwards would be of the opinion that maintaining the Alliance membership for one more year would allow staff an opportunity to recruit an individual to fill the position, but reiterated her desire to be a dues paying member with the Economic Development Corporation. To gain a full understanding as to whether or not the Alliance will continue to be viable, Mayor Pro Tem Naggar suggested that the Council not allocate the $60,000, but rather retain it as a place holder and discuss with Executive Board Member Field as to what the future of the Alliance will hold in the next year; that if the Alliance were to continue to be viable, the City could fund it for the fiscal year; that at this time next year, a strategic plan be available for Council to implement and allocate a position for an in-house representative; that if it were not going to be viable, the $60,000 should not be funded for this fiscal year. Referencing the Economic Development Corporation (EDC), Mr. Naggar noted that he would be willing to attend meetings, but would not be desirous of continuing a partnership with the Economic Development Corporation. Advising that the Alliance has been in existence for the last 7 to 8 years, Assistant City Manager Adams advised that there has been a transition in Directors over the course of 8 years. Not knowing what the ramifications would be by completely withdrawing from the Economic Development Corporation (EDC), Council Member Comerchero would be in full support of Mayor Pro Tem Naggar's comments; and noted that it would be his opinion that if the City were to decide to no longer be a partner and fund the EDC, it would be important to be a dues paying member, as stated by Council Member Edwards. R:IMinutesl051607 4 1 I I Council Member Comerchero relayed the importance of the business community knowing that the City would be in full support of its businesses; that although he would be in support of bringing the position in-house, it would be important to continue working with other Cities. City Manager Nelson suggested that $30,000 be provided to the Alliance, (leaving the remaining $30,000 in the budget); that staff proceed with the economic study returning to the Council for direction, noting that this will allow an opportunity to determine whether or not the City would bring the position in-house or not; and that this will allow Council an opportunity to discuss minimum membership opportunities with the EDC. In response to City Manger Nelson's suggestion, Mayor Pro Tem Naggar noted that he would not be desirous of funding the Alliance if it were not going to remain viable; suggested that before funding any monies, he would suggest discussing the viability of the Alliance with Executive Board Member Fields; reiterating that he would be supportive of the Alliance if they were to remain viable, if not, he would not be in support of funding the Alliance. Assistant City Manager Adams advised that a formal strategic plan has not been assessed since 1997 to 1999; advising that a new strategic plan would focus on Business Attraction, Business Retention, Workforce Development, and the Airport. At this time, Mayor Washington provided background information as to the inception of the Alliance. For the Council, Assistant City Manager Adams noted that he is not aware that the City of Murrieta officially withdrew from the Alliance. Council Member Edwards reiterated that it would be important to maintain a presence in the EDC as a member in order to maintain a relationship with the City's largest employers, and would be supportive of bringing the Alliance efforts in-house. While supporting the consensus of the Council, Mayor Washington relayed that it would be his opinion that Business Retention and Business Attraction would be better served in-house, Although Mayor Pro Tem Naggar noted that he would not be desirous of maintaining a relationship with the EDC, he would be agreeable with the City Council's decision to maintain a relationship with the EDC but requested monitoring of its progress. Showing Temecula businesses that the City would be in full support of its businesses, Council Member Comerchero relayed that at a minimum, the City continue as a dues paying member of the EDC. With the consensus of the Council, City Manager Nelson will implement the following: o That staff check with the Alliance to ensure its viability o That membership with the EDC be maintained (regular membership) o Proceed with the economic strategic study and return to City Council in 90 days for further direction. The City Council concurred with City Manager Nelson's implementation. Community Services District . Total Proposed Revenues . Total Proposed Expenditures $21,653,533 $22,058,176 R:IMinutesl051607 5 1 I I · REST/Special Tax - Rate per Household · Park & Recreation Facility Increases o Patricia H. Birdsall Sports Park - full year operations o Temecula Public Library - full year operations o Roripaugh Ranch Open Space and Trails o Wolf Creek Park - 6 acre Neighborhood Park - September 2007 . Park & Recreation Programs o Summer Months Activities and Recreation in Temecula S.M.A.R.T o Free Skateboarding and Swimming o Moonlight Movies in the Park o Temecula Fitness in Temecula (FIT) Program o Cultural Arts Program o Park Ranger program - 2 Rangers. For Director of Community Services Parker, Mayor Washington requested that staff explore the possibility of implementing a Balloon Glow in the City's parks for future summer events. In response to Mayor Washington's request, Director of Community Services Parker noted that his request has been incorporated into the budget. The City Council thanked Mr. Parker and staff for their efforts with regard to the budget. Temecula RedeveloDment Aaency · Total Proposed Revenues $16,192,529 · Total Proposed Expenditures $13,657,287 o Facade Improvements ($80,000) o Debt Service Increase of $1.2 M due to issuance of 2006 RDA Tax Allocation Bonds o Old Town Specific Plan Implementation ($200,000). In response to Mayor Pro Tem Naggar's query, Director of Redevelopment Meyer noted that the City would be meeting its affordable housing requirements. Mayor Pro Tem Naggar requested that over the next fiscal year staff provide a report on exploring redevelopment opportunities for the Jefferson Avenue Corridor. Referencing Mayor Washington's question with regard to the property at the north end of Diaz Road (former education complex), City Manager Nelson advised that 100% of the proceeds will be reinvested into the 20% affordable housing budget. City Manager Nelson also advised that in the near future, staff will be forwarding an item to the City Council requesting authorization to proceed with a request for information proposal on the former education center property. 2 Review of the orooosed FY 2008-12 Caoitallmorovement Prooram RECOMMENDATION: 2.1 Review and discuss the proposed FY 2008-12 Capital Improvement Program (CIP), and provide direction to staff as appropriate. By way of PowerPoint presentation, City Manager Nelson reviewed the proposed 2008-12 CIP Budget, noting the following: . 80 project s = $407,194,323 R:IMinutesl051607 6 I I I o Approximately $399,279,197 million are funded for traffic circulation improvement project o French Valley Interchange o Interim Southbound Off ramp o Auxiliary Lane o Santa Gertrudis Creek Bridge Widening o 1-15/79 South Ultimate Interchange o Pechanga Parkway Improvements - Phase II o Rancho California Road Widening, Old Town Front Street Interstate 15 o Diaz Road Alignment o Other Notable Circulation Projects . Pavement Management Program . Main Street Bridge . Overland Drive Extension . Winchester Road Median Beautification Project . Public Facilities Projects o Fire Stations - Wolf Creek and Roripaugh o Maintenance Facility Expansion/Field Operations Center o Civic Center Phase II . Parks & Recreation o Redhawk Community Park Improvements o Temecula Community Center (TCC) Expansion o Margarita Dog Park o Roller Hockey Rink · Redevelopment Agency o Old Town Infrastructure Street Improvements o Old Town Mixed-Use (Dalton II & III) o Habitat For Humanity II o Old Town Sixth Street Bollards. City Manager Nelson also advised that the proposed CIP will be reviewed by the Planning Commission, Public Traffic Safety Commission, and Community Services Commission. Speaking on behalf of the Wolf Valley and Rainbow Canyon Homeowners Association, Mayor Pro Tem Naggar queried on the possibility of expediting the construction of the bridge over Temecula Creek. Mayor Pro Tem Naggar requested the restriping of the eight lane configuration on Highway 79 South (La Paz west to the freeway) be expedited. For the City Council, Director of Public Works Hughes informed of the following: . That staff will explore the possibility of adding more capacity onto Highway 79 South, noting that staff has been holding off on the lane configuration until the median project is completed · That the completion of the double right movements from 79 South to Pechanga Parkway will help relieve traffic congestion · That although the planning of the eight-lane configuration can be made, it would need to be coordinated properly with the widening of Pechanga Parkway · That the bids of the all-purpose bike trail from Rancho California Road to Winchester are anticipated to open August, 2007 · That staff would be hopeful of implementing the remaining improvements on Pechanga Parkway at the end of 2007 . That the improvements on Pechanga Parkway will provide adequate capacity in the corridor. R:IMinutesl051607 7 I I I Mayor Washington concurred with Mayor Pro Tem Naggar's comment with regard to expediting the completion of the bridge over Temecula Creek. Council Member Comerchero echoed Mayor Washington and Mayor Pro Tem Naggar's request of expediting the bridge over Temecula Creek. Mr. Comerchero also relayed the importance of the Teen Center. Council Member Roberts relayed the importance of identifying funding for the bridge over Temecula Creek. Council Member Roberts advised of the upcoming MOU discussions with Pechanga Tribe and noted that funding would be requested. Mayor Washington commended Chief Aim and Lieutenant Pino for their efforts with regard to criminal activity in the Redhawk area and requested continued police presence in the area. Advising that staff is working diligently to improve public safety on the south side of town, City Manager Nelson advised that additional funding has been requested in order to provide additional police presence on the south side of town. For Chief Aim, Mayor Pro Tem Naggar requested police presence not only be provided on Pechanga Parkway but in the residential community as well. For the City Council, City Manager Nelson will incorporate the City Council's comments into the final document and would suggest setting aside $100,000 to $150,000 for the preliminary study of the Avenida De Missions Bridge over Temecula Creek; and that he would be in agreement of Council Member Roberts' suggestion to exploring future funding during the MOU discussions with the Tribe. Mayor Washington reiterated the importance of the Teen Center and congregating a number of youth activities for the center. CITY MANAGER'S REPORT City Manager Nelson thanked the Departments for their team effort and efficiency of completing these budget documents and commended the City Council for its leadership. R:IMinutesl051607 8 ADJOURNMENT I At 11:50 A.M., the City Council meeting was formally adjourned to Tuesday, May 22,2007, at 5:30 P.M., for a Closed Session with regular session commencing at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. 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