03-04-1993 - Laserfiche WebLink

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City Manager Ream informed the Council that he was proposing to eliminate the projected FY 93-94 shortfall through budget cuts of approximately $10.5 million and revenue enhancements of $9.0 million. Ream commented that although the City will have a balanced budget for FY 93-94, the unpredictability of the state budget was causing him continuing concern for the future. FEDERAL AND STATE BUDGET IMPACTS Senior Management Assistant Jill Arthur reviewed the impacts of the state budget on Santa Ana, indicating the State had withdrawn over $20 million from the City's coffers over a 3- year period. Councilmember Pulido left the meeting at 6:48 p.m. Arthur also discussed state mandates which cost Santa Ana $10 million annually, negative perceptions State legislators had concerning local governments' financial condition, and upcoming bills which increase the costs of doing business. Arthur noted that since 1990, cities were the only level of government which had reduced employees, while total number of employees for the state, county, schools, and special districts had increased. Councilmembers discussed the impacts of the state budget crisis on Santa Ana. Councilmember Norton urged the Council to take a leadership role in informing the Legislature of the cities' objections to using local governments to balance the state budget. Arthur then reported on the City's efforts to secure federal funding for several projects including the Bristol widening, the federal courthouse, and the Weed and Seed Program, indicating a recent trip to Washington D.C. had produced favorable results. OVERVIEW OF DEPARTMENT BUDGET PROPOSALS City Manager Ream presented charts which demonstrated each City department's budget cuts and revenue enhancements to solve the budget shortfall, noting the largest contribution of 30% came from the Public Works Agency. Ream reviewed the number of City of Santa Ana full-time employees over a 10-year period, noted a steady decline since 1990 to the current 1,601 full-time positions, and reported the ratio of 5.25 City employees per 1,000 population was the smallest of the 11 largest cities in California. Councilmember Norton requested that charts shown by the Manager but not included in the Budget Discussion booklet be reproduced for the Council. Due to the lateness of the hour, the Council agreed to defer presentations by the City Manager, Clerk, and Attorney to the next budget session. Councilmembers discussed ways to increase City revenues and decrease expenditures such as using the Enterprise Zone to encourage business, privatizing services, and utilizing more volunteers. CITY COUNCIL MINUTES 98 MARCH 4, 1993