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MINUTES OF THE ADJOURNED REGULAR MEETING
<br />OF THE CITY COUNCIL OF THE
<br /> CITY OF SANTA ANA, CALIFORNIA
<br />
<br />June 13, 1978
<br />
<br />The meeting was called to order at 5:00 P.M., by Mayor Vernon
<br />S. Evans, in the City Council Chambers, 22 Civic Center Plaza.
<br />The following Council members were present: Gordon Bricken,
<br />David F.. Ortiz, Harry K. Yamamoto, John Garthe, David L. Brandt,
<br />James E, Ward and Mayor Evans. Also present were the following
<br />members of Staff: City Manager Bruce C. Spragg, Assistant City
<br />Attorney Edward Cooper, Director of Personnel Donald E. Bott,
<br />and Clerk of the Council Florence I. Malone.
<br />
<br />INVOCATION
<br />PLEDGE OF ALLEGIANCE
<br />
<br />Councilman Brandt.
<br />
<br />Following the Pledge of
<br />Allegiance to the Flag,
<br />led by Mayor Evans, the
<br />Invocation was given by
<br />
<br />EXECUTIVE SESSION At 5:03 P.M., Mayor
<br />PERSONNEL MATTERS Evans declared a recess
<br />RECESS for an Executive Session
<br /> to discuss personnel
<br />matters regarding current wage and salary negotiations. The
<br />City Manager and the Director of Personnel were requested to
<br />participate in the Executive Session. The Council meeting was
<br />reconvened at 5:42 P.M., with all Councilmen present.
<br />
<br />BUDGET REDUCTION OPTIONS City Manager Bruce C.
<br />PRESENTED BY CITY MANAGER Spragg stated that with
<br /> the passage of Proposi-
<br /> tion 13 (the "Jarvis
<br />Amendment", which, in effect, reduced the City's anticipated
<br />revenues from property taxes) on June 6, the City can anticipate
<br />a tax loss for the next fiscal year of $7,667,000 which amounts
<br />to a 63% reduction in tax revenues, or 19% of $39,796,82S, the
<br />proposed operating budget for fiscal year 1978-79; and that Santa
<br />Ana will have the biggest tax loss of any City in Orange County.
<br />He estimated that the City will receive $4,4S7,000 from tax
<br />revenue under Proposition 13, and pointed out that these cal-
<br />culations are just estimates because there are still many un-
<br />knowns, including how the State will distribute its S billion
<br />dollar surplus; and that in order to adhere to the City Charter
<br />requirement to adopt a balanced budget by July 31, Staff is
<br />assuming that the City will not receive any money from the
<br />State surplus, although it is probable.
<br />
<br />In referring to his preliminary report, dated June 2, regarding
<br />budget reduction options, Mr. Spragg stated that a number of
<br />reduction options had been provided to Council, the total of
<br />which almost doubles the 7.6 million dollars which is the
<br />estimated minimum need; and that this was done to provide the
<br />greatest flexibility in reducing the proposed budget.
<br />
<br />During his presentation, the City Manager requested Council's
<br />direction and guidance to the Staff as he reviewed potential
<br />sources of revenue, including a wage or occupational tax, real
<br />estate transfer tax, 6% utility user tax, Council Contingency
<br />fund, Federal Revenue Sharing funds, the City's Capital fund
<br />and increased user fees. He directed Coouncil's attention to
<br />possible departmental cuts in services and employees that were
<br />included in his June 2 report, representing about a 15% reduc-
<br />tion for each department, including 192 positions, 70 of which
<br />are presently vacant.
<br />
<br />CITY COUNCIL MINUTES
<br />
<br />219
<br />
<br />JUNE 13, 1978
<br />
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