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2000/06/06_SpecialIIANAHEIM, CALIFORNIA - SPECIAL CITY COUNCIL MEETING JUNE 6, 2000 The City Council of the City of Anaheim, CA met in special session. Present: Mayor Tom Daly, Council Members: Frank Feldhaus, Lucille Kring, Tom Tait and Shirley McCracken. Staff Present: City Manager Jim Ruth, City Attorney Jack White, City Clerk Sheryll Schroeder, Assistant City Clerk Cindy Daniel-Garcia, City Treasurer Charlene Jung, Finance Director Bill Sweeney, Budget Manager Jeff Stone, Human Resources Director David Hill, Assistant City Manager Dave Morgan, Convention, Sports and Entedainment Director Greg Smith, Anaheim/Orange County Visitors Bureau President, Charles Ahlers Mayor Daly called the special meeting to order at 2:10 p.m. in the Council Chambers of the Anaheim City Hall, 200 S. Anaheim Blvd. The Notice of Special Called Meeting was delivered on June 2, 2000. The Special Meeting was called for a workshop on the proposed budget for fiscal year 2000/2001. FISCAL YEAR 2000/2001 DEPARTMENTAL BUDGET WORKSHOP: City Manager Jim Ruth announced that pursuant to Charier Sections 1202, 1203, and 1204, the Council would review the proposed annual budget, which has been available for public inspection at the City Clerk's Office. He presented the proposed budget as outlined in the City Manager's Transmittal Letter dated May 2, 2000, which is a pad of this record. He explained that public comments and questions would be heard at the 5:00 p.m. noticed public hearing, which would be continued to June 13, 2000. Mr. Ruth said the proposed budget for 2000/2001 totaled $659,899,438, which represented a decrease of approximately 2.5% for the adopted/adjusted budget. He noted the decrease was primarily due to reductions in Public Works and Public Utilities departments as a result of major projects that have been or are projected for completion during the current fiscal year. He explained the proposed budget included 2,089 full time positions, an increase of 26 positions. He informed that the Fire Department has proposed an increase of 12 positions to staff a new fire company in support of the expanded resort facilities and Community Development Department has new federal program requirements for an additional 8 positions. The expanded Convention Center had proposed 7 new positions, the Police Department would be adding 2 positions and the City Attorney would add one. Planning was decreasing by 3 positions, Mr. Ruth explained, and Public Utilities was down I position. The proposed General Fund budget for fiscal year 2000/2001 totaled $161,806,256, which represented an increase of $6,995,988, about 4.5% over the fiscal year 1999/2000, he reported. This was primarily due to a $2,257,419 increase in the Police Department budget, a $1,465,110 increase in the Fire Department budget and a $1,133,681 increase in the Community Services Department. He noted the police and fire increases were related to the increase labor and support of the combined and CITY OF ANAHEIM - CITY COUNCIL MINUTES SPECIAL MEETING - JUNE 6, 2000 PAGE 2 completed resort and the opening of Disney's new theme park. The cost of the additional support would be offset with anticipated increase revenues from the resort, he stated. Community Services Department increases were spread among the Parks, Recreation and Library divisions as it added new parks such as Ross, Vermont and Washington and Deer Canyon Parks. Mr. Ruth said that since 1990/1991, one the Council's goals has been to ensure Public Safety, and the City had increased the number of police officers by 60 since that time. There were currently 400 officers. He noted that 54 police officers were now assigned to the new Anaheim Hills Police Station/Community Center, which has created an enhanced presence in East Anaheim. The new facility in West Anaheim should be operational within the next 30 days. The proposed budget incorporated funds for the acquisition of a site for a permanent police substation. Mr. Ruth reviewed the state-of- the-art equipment purchased for the Police Department over the last few years and he reported crime had continued to decrease in the City. He added that the Police Chief would present the Police Department budget June 13, 2000. In addition to public safety, Mr. Ruth said the budget was able to provide significant resources to community infrastructure needs. On February 24, 2000, the City received final distribution of funds relating to the Orange County bankruptcy and on April 18, 2000, Council authorized placing 12.6 million dollars into the general City capital outlay fund for projects to be funded in the proposed 2000/2001 budget. He said he was pleased to announce the following projects to be funded by the bankruptcy proceeds, subject to Council approval: West Anaheim Community Center, planning and design West Anaheim Police Facility, acquisition for a site Main Library Remodel, planning and design General Plan Update, first phase Curbs, gutters and sidewalks, replacement Arterial Street Median Landscaping Additional Tree Pruning He said future year budgets would contain the balance of the $12.6 million for the completion of the above projects. For the 4th year in a row, he said, the budget contained $500,000 for the Neighborhood Improvement Fund, which provided the City with the ability to respond to much needed neighborhood issues such as increased street lighting, sidewalk repair and many other needs identified through neighborhood meetings. He noted the Anaheim Resort was beginning to see improvements thanks to the $5 million Anaheim Resort Neighborhood project. Through the Community Development Department, affordable housing opportunities are made available to eligible residents. The Neighborhood Preservation program provided low interest property rehabilitation loans, home ownership assistance and historical preservation. Redevelopment Housing Set-aside funds provides incentives to developers of affordable housing and assistance to first time homebuyers in Anaheim. He noted the proposed budget continued to enhance and protect neighborhoods. Mr. Ruth noted that as a companion document to the proposed budget, the City's five year Capital Improvement Plan addressed in detail the planned infrastructure CITY OF ANAHEIM - CITY COUNCIL MINUTES SPECIAL MEETING - JUNE 6, 2000 PAGE 3 improvements. Included in this plan, he continued, for the year 2000/2001 was $41.7 million in electric system improvements; $10.2 million in water system improvements; $39.5 million in street improvements; $3.9 million in park and landscape improvements and $46.2 million in Anaheim Resort improvements as well as $4.1 million in traffic and transportation improvements. City Manager Ruth added that the Budget Advisory Commission, at their meeting of May 17, 2000, unanimously endorsed the proposed budget and has sent it to Council with their recommendation for approval. Mr. Ruth finalized by saying that the challenge in the next several years would be to continue to provide the high quality of public services that the citizens enjoyed while limiting the growth in the City's expenditures. He said he felt with informed citizen comment, Council direction and the ongoing efforts of the dedicated employees, Anaheim's future would be very bright. Mr. Ruth turned the presentation of the proposed fiscal year 2000/2001 budget over to Bill Sweeney, Finance Director. Mr. Sweeney reviewed the proposed budget through a series of slides, which are made a part of the record. Council Member McCracken asked for clarification that if the revenue from the Resort was greater than anticipated, the money would be applied to the principal to pay off bonds. Mr. Sweeney answered, yes, with respect to the Disney properties. At this point, City Manager Ruth introduced Assistant City Manager, Dave Morgan, who presented the Council's and Administration's proposed budget, which appear on pages 29 through 33. His presentation is made a part of this record. Mayor Daly asked Mr. Morgan to explain the Community Leader Resort tours. Dave Morgan responded that as the resort was completed, there were a number of programs being considered to help celebrate and the programs would be coming back to Council for approval. This program was a consideration of taking community leaders through the resort area to show the convention center and other improvements. Mayor Daly asked if there had been a line item appropriation attached to that program and Mr. Morgan responded, no. The program would come back to the Council for approval. Next, Mr. Ruth introduced the City Clerk, Sheryll Schroeder, who presented the proposed City Clerk's Department budget, pages 36 to 37, which is made a part of this record. Council Member Kring questioned adding hours for voter registration and Ms. Schroeder responded the week prior to the close of voting registration, the I st week in October, the Clerk's office would remain open to 5:30 p.m. or 6:00 p.m to provide voter registration. ADJOURNMENT OF SPECIAL MEETING: Mayor Daly moved to adjourn the special meeting, seconded by Council Member McCracken. MOTION CARRIED. At 3:03 p.m. the Special Meeting was adjourned and the regular meeting of June 6, 2000 was convened. CITY OF ANAHEIM - CITY COUNCIL MINUTES SPECIAL MEETING - JUNE 6, 2000 PAGE 4 Respectfully submitted: Sheryll Schroeder, CMC/AAE City Clerk