HomeMy WebLinkAbout03-07-1996MINUTES OF THE ADJOURNED REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA, CALIFORNIA
MARCH 7, 1996
CALLED TO ORDER
6:10 P.M.
SANTA ANA MAIN LIBRARY
SECOND FLOOR CONFERENCE ROOM
26 CIVIC CENTER PLAZA
ATTENDANCE:
COUNCILMEMBERS
Present:
MIGUEL A. PULIDO, Mayor
ROBERT L. RICHARDSON, Mayor Pro Tern
TONY ESPINOZA
TOM LUTZ
PATRICIA A. McGUIGAN
LISA MILLS
TED R MORENO
Absent: NONE
STAFF
Present:
DAVID N. REAM, City Manager
RICHARD E. LAY, Assistant City Attorney
JANICE C. GUY, Clerk of the Council
WORK STUDY SESSION
1996-97 CITY BUDGET OVERVIEW
City Manager David Ream began the budget study session by describing the budget as the City's
business plan for a 12-month period, and outlining a proposed General Fund budget of $120.6 million
for Fiscal Year 96-97. Ream announced the budget meeting schedule included study sessions on
March 18, 21, and 28 and a public hearing on April 1.
Ream prefaced the budget presentation by reviewing the City's Vision, Purpose, and Goals and the
major 1995-96 accomplishments by goal category, citing in particular, the decline in the City's crime
rate to its lowest levels since 1967. Ream enumerated the proposed Budget Highlights that included
completing the Police Administration and Holding Facility, reconstructing Harbor Blvd. and 17th
Street, constructing Delhi Park, expanding the Homework Assistance Program, and implementing
the City's Strategic Technology Plan and related them to the City's goals.
CITY COUNCIL MINUTES
78 MARCH 7, 1996
Ream provided a backdrop to the City's financial situation by noting that the City's population has
increased by 50°4 over the last decade while City staff has downsized to become the second smallest
city workforce per capita among California's 11 largest cities. Ream also detailed how the City had
lost approximately $36 million in revenue over the last six years to State budget cuts.
Ream projected a budget shortfall of $10.4 million ($6.7 million reduction in decreased revenues and
$3.7 million in additional expenditures) in the General Fund Budget and explained how the deficit
could be corrected through:
- personnel reductions;
- revenue enhancements which include a 1% increase in the water rates and refuse fees,
a $1 per month increase in the sanitation fee, a conservation-based rate structure for
water service, and modifications to the City's recycling program; and
- revenue transfers (on-going and one-time) from enterprise and reserve funds.
Assistant City Manager Debra Kurita then briefed the Council regarding proposed changes in
miscellaneous and other fees.
Ream concluded his presentation by noting that the City lost approximately $30 million in the Orange
County bankruptcy and covered the resulting budget shortfall by deferring capital improvement
projects, such as the Garthe Reservoir expansion, and by borrowing money to pay the debt service
for the new Police Administration and Holding Facility.
RECESS - 7:15-7:$5 P.M.
CONSERVATION-BASED WATER RATES
Water Resources Manager Lee Harry outlined the accomplishments of the City's Water Enterprise
which include constructing five new wells, eliminating 70% of main line breaks, and maintaining the
City's low water rates (Santa/ina ranks 26 of 34 Orange County water providers listed in the order
of highest to lowest water rates.) Harry showed slides demonstrating projected population growth
coupled with a rising demand for water, then discussed the need to increase the water supply through
various means such as conservation and recycling.
Harry stated the FY 96-97 Water Enterprise fund is projected to incur a $2 million budget deficit and
referenced the water capital improvement funding shortfalls. According to Harry, the deficit could
be closed and the water capital improvement fund restored by implementing conservation-based or
inclining block pricing for water rates (higher volume users pay higher water rates) in January 1997.
Harry pointed out that tiered pricing has already been adopted by 11 of Orange County's 34 water
providers. Harry explained that under this proposal, over 60% of Santa Ana's customers would
experience no increase in their water bill, and that water to irrigate City parks would continue to be
charged a flat rate.
CITY COUNCIL MINUTES 79 MARCH 7, 1996
Harry responded to Councilmembers' questions regarding inclining block water rates and indicated
he would provide Council with information regarding the impacts of these rates on businesses and
multi-family units.
Councilmember Mills requested staff delineate the sources of funds for the FY 96-97 Capital
Improvement Program.
ADJOURNMENT - 8:29 P.M.
Clerk of the Council
CITY COUNCIL MINUTES 80 MARCH 7, 1996