1982/10/28City Hall, Anaheim, California - COUNCIL MINUTES - October 28, 1982, 9:30 A.M.
The City Council of the City of Anaheim met in adjourned regular
session in the Civic Center Training Classroom for an Executive
Management Seminar on the budget°
PRESENT:
ABSENT:
PRESENT:
COUNCIL MEMBERS: Kaywood, Pickler, Overholt (entered at 11:50
a.m.), Bay and Roth
COUNCIL MEMBERS: None
CITY MANAGER: William O. Talley
CITY ATTORNEY: William P. Hopkins
CITY CLERK: Linda D. Roberts
CITY TREASURER: Ruth Redepenning
ASSISTANT CITY MANAGER~ James D. Ruth
FINANCE DIRECTOR: George P. Ferrone
ASSISTANT DIRECTOR FINANCE/BUDGET: Ronald Rothschild
REDEVELOPMENT EXECUTIVE DIRECTOR: Norman J. Priest
CITY LIBRARIAN: William J. Griffith
HUMAN RESOURCES DIRECTOR: Garry O. McRae
PLANNING DIRECTOR: Ronald L. Thompson
ACTING CHIEF OF POLICE: Jimmie Kennedy
ASSISTANT TO THE CITY MANAGER: Jim Armstrong
STADIUM/CONVENTION CENTER/GOLF COURSES DIRECTOR: Thomas Liegler
PUBLIC UTILITIES GENERAL MANAGER: Gordon W. Hoyt
SENIOR ASSISTANT CITY ATTORNEY: Frank Lowry
BENEFITS AND TRAINING MANAGER: Tom Tyre
MANAGSMENT AUDITOR: Scott I. Thorpe
Mayor Roth called the adjourned regular meeting to order.
City Manager William Talley opened the session with a briefing on the agenda
for the seminar.
Mr. Ronald Rothschild, Assistant Director Finance/Budget, then gave a
presentation supplemented by slides relative to the Anaheim budgetary process,
explaining that they were operating under a programmed approach to allocating
resources, both integrated with and complementary to the City's Management By
Objectives (MBO) process. He also explained the benefits derived from MBO and
programmed budgeting concurrently resulting in the molding of resource
allocation, together with the formulation of public policies and
organizational'goals. He gave an overview o£ the time cycle of the
development of the Resource Allocation Plan, its implementation and the
external audit and recording of planned activities after the year was
complete. He also briefed the Council on data submitted entitled Resource
Allocation Planning Process, memorandum dated November 30, 1981, from the City
Manager, Resource Allocation Plan: Fiscal Year 82/83 and Annual
Plan--Guidelines for Preparation of Goals, Objectives and Performance Measures
(on file in the City Clerk's office).
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City Hall, Anaheim, California - COUNCIL MINUTES - October 28, 1982, 9:30 A.M.
Mr. Scott Thorpe, Management Auditor, then addressed the development of the
Budget Manual, the major budget tools, as well as the early processing of the
budget and the budget preparation cycle. He then briefed the three major
budget tools--the Budget Manual (1982-83), Payroll Forecast Worksheet
Report--F4, and the On-line Budget System (Summary User Guide). Copies of
each were submitted to the Council (on file in the City Clerk's office), as
well as a copy of the MAFIS (Municipal Automated Fiscal Information System)
Budget System Manual.
During Mr. Thorpe's presentation, Councilman Bay posed questions relative to
the budget cycle, as well as other aspects of the process, which were answered
by City Manager Talley and members of his staff.
Mr. Thorpe then continued his presentation supplemented by slides during which
he continued with his briefing of additional reports that were submitted to
the Council.
RECESS: By general consent, the Council recessed for five minutes. (11:20
AFTER RECESS: The Mayor called the meeting to order, all Council Members
being present with the exception of Councilman Overholt. (11:27 a.m.)
Ron Rothschild then gave an overview of the financial state of the City and a
briefing on revenues, expenditures, the economic outlook and status of State
and Federal budgets and the effect of those budgets on cities. (Additional
data was submitted to the Council as follows: Fiscal Year 1981/82 General
Fund Activity--Comparison of Appropriated and Projected; 1982/83 Proposed
Resource Allocation Plan Summaries; Federal General Revenue Sharing,
Administrative Proposed Use Hearing, April 20, 1982; Final Statement of
Community Development Objectives and Projected Use of Funds; Fiscal Year
1982/83 Appropriations Limit; September 1982 Figures on Employment and
Affirmative Action, Labor Relations and Classification and Compensation;
Accounting Division Monthly Status Report--June 1982; Parks, Recreation and
Community Services Department Activities, Quarter Ending March 31, 1982.)
City Manager Talley then spoke on Resource Allocation Planning Policy and at
the outset, stated there were three things the Council was going to have to
make a determination on; the first, what areas did they believe should be
concentrated on in future years. He (Talley) suggested primarily it should be
the infrastructure. Renewal and refurbishment of the infrastructure, in his
view, was the highest need and his highest priority, i.e., maintenance of the
primary public facilities, streets, sewers, sidewalks, water mains, traffic
signals and signing, sidewalk areas, public nuisance areas in general. The
way funds could be diverted to that area were two-fold. (1) Take money from
existing City programs and reallocate priorities, or (2) create new revenues.
Councilman Overholt entered the meeting. (11:50 a.m.)
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City Hall, Anaheim, California - COUNCIL MINUTES - October 28, 1982, 9:30 A.M.
Relative to new revenues, the areas they might want to consider had already
been brought to the Council's attention. He then explained that because the
City of San Gabriel decision allowed cities to set an ad valorem tax rate for
the purpose of financing City contributions to PERS, in some manner, this
would allow Anaheim to fund any part of currently a $9.7 million a year
expense through taxes. The other was the Farrell decision which said that
Proposition 13 did not restrict cities from levying or raising rates for
general taxes. The two that concerned him the most from an equity standpoint
were the business license tax, which had not been increased since 1958, and
the Transient Occupancy Tax. In concluding his presentation, Mr. Talley
stated that, absent a change in Council policy direction, he did not see any
major policy changes on the level of service.
Discussion then took place on the points raised by Mr. Ta]ley relative to the
ad valorem tax, and especially the Transient Occupancy Tax.
Following the discussion, Mr. Talley suggested that perhaps the first step was
for Council to create something like HA(MAC (the former Hill and Canyon
Municipal Advisory Committee which was formed on a temporary basis) and begin
discussions with a representative group from the Council and the industry with
the staff merely as advisory or support, and develop the benefits to be
derived in raising the Room Tax.
Councilman Bay stated if the Council decided to broach an increase in the ad
valorem tax or Room Tax, they first had to research the City's operating
budget to look at the possibility of reducing operational costs without direct
impact on tangible services to the community. These steps would have to be
taken first because the first question to be asked by the industry and the
public would be, had they searched all the other austerity that could be
created in the budget and the alternatives.
Councilwoman Kaywood stated she would like to see an immediate beginning of
the steps to be taken.
Extensive discussion then followed amongst the Council Members relative to
raising more revenues through either the property tax or the Transient
Occupancy tax, specifically the latter, at the conclusion of which, Mayor Roth
stated that he did not favor the idea of an increase in the Occupancy Tax, but
he was not set in concrete if, in fact, there was support from the industry
for such a move. If so, they should start thinking about what the trade-offs
would be. He was very interested in the concept of a parking authority as he
had previously mentioned. If they had a parking authority, it would permit an
additional amount of development, particularly in the Disneyland area, which
would bring in additional revenues to the community through both occupancy and
sales tax. He suggested that staff start thinking about this particular
concept.
Mr. Talley stated that he had taken direction that the Council would be
receptive to having staff give them a presentation on some of the things that
might be considered on formdlating a program for further dialogue with Council
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City Hall, Anaheim, California - COUNCIL MINUTES - October 28, 1982, 9:30 A.M.
and with the people in the tourist-convention area. They would first come
back to the Council to be certain what staff was doing was what the Council
wanted.
Mr. Norman Priest, Executive Director of Community Development, then gave an
update on the downtown portion of the Redevelopment Project Alpha, and also
touched upon key changes and issues that were allied to the downtown project,
but not specifically in the project area.
Mr. Thomas Liegler, Stadium/Convention Center/Golf Course Director, gave the
status of the Convention Center Betterment II Program prefaced by a slide
presentation giving an historic overview of the development of the Convention
Center, 1966 to present. It was expected that the Betterment II Program would
be complete the first part of December with a replacement parking structure
scheduled to be completed by December 2.
Mr. Jim Armstrong, Assistant to the City Manager, then updated the Council on
the construction of the replacement parking structure being built by C-D III
preliminary to starting construction of the Hilton Hotel. The completion of
the structure was expected to bring about a dramatic improvement in the
parking situation in the Convention Center.
RECESS - CLOSED SESSION: By general consent, the Council recessed into Closed
Session. (1:03 p.m.)
AFTER RECESS: The Mayor called the meeting to order, all Council Members
being present. (1:30 p.m.)
ADJOURMMENT: Councilman Roth moved to adjourn. Councilman Pickler seconded
the motion. MOTION CARRIED. (1:30 p.m.)
LINDA D. ROBERTS, CITY CLERK
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