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Home My WebLink About09/08/1992 - Adjourned Regular MeetingCITY OF NEWPORT BEACH �r Present x x x x x x x • 0 ADJOURNED COUNCIL MEETING PLACE: Council Chambers TIME: 5:00 P.M. DATE: September 8, 1992 ROLL CALL 1. PUBLIC COBR(ENTS ON NON- AGENDA ITEMS None. 2. UPDATE ON CITY INTERIM 1992 -93 BUDGET The City :Manager advised that on June 22, 1992, the City Council adopted an Interim City 1992 -93 Budget. The State of California on September 2nd adopted the State Budget permanently reducing property tax allocations to Newport Beach by 9% or an estimated $2,031,798. This reduction is compounded by the recently released 1992 -93 tax rolls by the Assessors office indicating that property tax assessments will grow only 4.07% in Newport Beach, lowering earlier estimates by $1 million. The City ended the 1991 -92 fiscal year with sales tax receipts $2 million below the 1990 -91 fiscal year. This will lower earlier sales tax estimates by $900,000 for the 1992 -93 fiscal year. All together the City's revenues should be $3.9 million lower than originally forecast. City staff' has prepared a set of budget revisions including reductions in personal, maintenance and operation accounts and capital outlay programs to close this gap. The proposed reductions are as follows: Salaries and Benefits $1,158,982 Maintenance and Operation 1,073,053 Capital Outlay & Capital Fund Projects 1.797.360 Total $4,029,395 With these reductions the General Fund operation:: are reduced to a level of $8.1 million below the 1991 -92 fiscal year or 11.68. The City Manager gave an overview of his report which was organized as follows: - Section I The Fiscal Picture - Section II Process /Goals /Guidelines Section III Proposed Expenditure Reductions /Impacts Section IV Long Range Fiscal Issues - Section V Implementation Steps The City Manager stated that the proposal to balance this fiscal year and prepare for the next fiscal year will require the action of the City Council in several. ways, and therefore, made the following recommendations: Volume 46 - Page 291 MINUTES 1 ma 0 0 All Ayes All Ayes CITY OF NEWPORT BEACH � \L &L September 8, 1992 Review, discuss, and modify as appropriate the proposals of staff to reduce the City's operating expenditures for fiscal year 1992- 93. If after review the City Council is comfortable with the reductions, then it would be appropriate to authorize staff to meet and consult with the City employee groups on the potential impacts of these reductions prior to the City Council taking action on the reductions. Review in closed session the specific details of the personnel reductions, receive approval to inform the potentially impacted employees, and authorize staff to meet and consult with the appropriate empliyee groups on the potential impacts of the reductions prior to City Council final action on the reductions. Authorize staff to begin work with the Chamber of Commerce and other interested parties on possible revenue increases which would be implemented within the next three to six months. 4. Approve the cont modified hiring vacancies which organization to vacancies for savings. inuation of a freeze for occur in the examine these further cost After discussion in closed session of the City's current Meet and Confer position direct staff to resume the bargaining process with an updated and current economic position. The City Council discussed additional methods for generating revenue; expressed their individual budgetary concerns, and complimented staff for their efforts in meeting the budget crisis. Following consideration, the Council straw -voted to defer the capital improvement project for Coast Highway/Hesrport Boulevard landscape Improvements ($200,000) to fiscal year 1993 -94. The Council also straw -voted to approve all the recommendations contained in the City Manager's report, with the exception of the proposed allocation for Arts and Culture. Volume 46 - Page 292 MINUTES 810W:ll� Motion Ayes Noes 40 CITY OF NEWPORT BEACH u iu, �iayela; «9 \\\ September 8, 1992 M .tea Y �C Mayor Pro Tem Turner stated that the City has been allocating a total of $55,000 annually to Arts and Culture for several years which is divided among such groups as South Coast Repertory, Newport Harbor Art Museum, Opera Pacific, Newport Nautical Museum, etc. and he does not feel said allocation should be reduced to $30,000 as recommended; and therefore, moved to reduce the Arts and Culture fund by 5% across the; board. Council Member Hedges stated that inasmuch as the City will be laying off equivalent full -time employees, as a result of the State's action, he cannot support the above expenditure of funds. The motion was voted on and carried. Mayor Sansone suggested that the Travel and Meeting requests of all departmental budgets be approved by the City Manager prior to release of any funds, and that steps be oaken to reduce those amounts to the absolute minimum. Council Member Hedges requested a report on the productivity and use of the Police Helicopter on an annual basis; said report to include the number of crime incidents the helicopter has identified.; the number of apprehensions attributed, solely by use of the helicopter; hours of operation; cost of helicopter; and how much time is spent on survellience, as compared to using police vehicles. There being no further business, the meeting adjourned at 6:10 p.m. to closed session for personnel matters. The closed session adjourned at 7:1.0 p.m. The agenda for this meeting was posted on September 4, 1992 at 4:45 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Mayor _- G Volume 46 - Page 293 MINUTES X x x x x x x .tea Y �C Mayor Pro Tem Turner stated that the City has been allocating a total of $55,000 annually to Arts and Culture for several years which is divided among such groups as South Coast Repertory, Newport Harbor Art Museum, Opera Pacific, Newport Nautical Museum, etc. and he does not feel said allocation should be reduced to $30,000 as recommended; and therefore, moved to reduce the Arts and Culture fund by 5% across the; board. Council Member Hedges stated that inasmuch as the City will be laying off equivalent full -time employees, as a result of the State's action, he cannot support the above expenditure of funds. The motion was voted on and carried. Mayor Sansone suggested that the Travel and Meeting requests of all departmental budgets be approved by the City Manager prior to release of any funds, and that steps be oaken to reduce those amounts to the absolute minimum. Council Member Hedges requested a report on the productivity and use of the Police Helicopter on an annual basis; said report to include the number of crime incidents the helicopter has identified.; the number of apprehensions attributed, solely by use of the helicopter; hours of operation; cost of helicopter; and how much time is spent on survellience, as compared to using police vehicles. There being no further business, the meeting adjourned at 6:10 p.m. to closed session for personnel matters. The closed session adjourned at 7:1.0 p.m. The agenda for this meeting was posted on September 4, 1992 at 4:45 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Mayor _- G Volume 46 - Page 293 MINUTES