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1984 SEP 18 CC MINVa�.cl�i MINUTES OF THE ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL September 18, 1984 I. CALL TO ORDER The E1 Segundo City Council convened in an adjourned regular session Tuesday, September 18, 1984 at 6:00 p.m. in the Council Chamber of the E1 Segundo City Hall. II. THE PLEDGE OF ALLEGIANCE was led by Mayor Armstrong III. ROLL CALL Present: Councilmembers Jacobson, Schuldt, Synadinos and Mayor Armstrong Absent: Councilman Siadek IV. PRESENTATION The Mayor announced that this meeting has been called for the purpose of hearing a presentation by Mr. Doug Ayres regarding the Water Fund Accounting Report. The Council adjourned to the West Conference Room on this matter. Mr. Ayres stated that this was the first of three phases. He further stated that he needed input at this time to be able to offer viable computer generated alternative scenarios at future Council meetings. The accounting changes that are recommended implement the recommendations made by the City's auditor in the 1983 Audit Report and place the City in a position to allocate all overhead costs in compliance with requirements of the Gann Amendment. The following issues were addressed and discussed: 1) Replacement of Fixed Assets throuyh Depreciation Charges - The consideration was whether. a 20, 250, or 30 year remaining life basis should be adopted. The effect on additional water revenue needed to implement the various alternatives were presented. It was felt that a 20 year basis could be considered. 2) General Fund Reimbursement - There were three decisions relating to costs that would reimburse the General Fund for overhead. This could result in significant additional General Fund revenue. the three are Franchise Fee, Street Replacement Costs and In Lieu Property Tax. In lieu pr.opety tax - there appeared to be a willingness to consider; 5 cents per $100 valuation may be too low, but $1 is too high; would be willing to consider in Lieu franchise fee. 3) A general consensus was that investment income and water rights sale revenue should remain in the Water Fund. V. ADJOURNAENT No turther business appearing to come before the Council at this session, the imayor declared the meeting ad- journed the hour of adjournment being 6:57 o'clock p.m. Respectfully submitted, VALERIE A. BURROWES Valerie A. burrowes, City Clerk APPROVED: B epu ty Charles K. Armstrong, Mayor -2- Council Minutes September 18, 1984