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1985 JUN 25 CC MINX fil70 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL JUNE 25, 1985 CALL TO ORDER was made by Mayor Armstrong at 4:00 P.M. in the Council Chamber of the E1 Segundo City Hall. PLEDGE OF ALLEGIANCE was led by Mayor Armstrong. ROLL CALL was taken by City Clerk Hart Councilman Jacobson - present Councilman Schuldt - absent Councilman Siadek - absent Mayor Pro Tem Synadinos - present Mayor Armstrong - present PRESENTATION Budget Study Session for the Fiscal Year 1985 -86. Mayor Armstrong gave a brief overview of the last meeting indicating that he felt there was a great deal accomplished on philosophy. The Mayor did have some general questions on the amount of money spent and the actual monies allocated by Council. He also wanted to know why there were increases in the various departments. Councilman Siadek arrived at 4:13 P.M. Councilman Schuldt arrived at 4:14 P.M. City Manager Romaniello stated that any expenditure that was not in the budget, automatically comes before Council for approval. Therefore, any monies spent over the actual budget originally approved, was approved later in the year by Council. Mr. Romaniello further indicated that what the Council does not see is that at the end of the year some of the money not spent is "put back in" the system and this is not reflected. At 4:19 P.M. Councilman Siadek left the Council Chambers and re- entered at 4:24 P.M. Mayor Pro Tem Synadinos asked if these were actual expenses reflected and if the money shown was actual money spent. She also inquired where the requested money was put back if not completely used. Lengthy discussion ensued from Council and City Manager Romaniello. Mr. Romaniello continued that the unspent money is put into the General Fund Reserve. Director of Finance Jose Sanchez stated that Finance tried to show the funds that are going to be available for the upcoming year's cost of operations. This is reflected on the budget summary page - at the beginning of the year and the financial position of the fund at the end of the year based on the estimated revenues that fund is going to derive and the estimated appropriations that are going to be charged against the fund. What the bottom line doesn't show is what revenues are coming in for the year and the operating cost that are projected for that year. Discussion ensued regarding a balanced budget and no use of reserve funds. City Manager Romaniello indicated that if reserve funds were totally not considered then City fees would have to be adjusted upward accordingly to make sure there is a balanced budget. Discussion ensued regarding short -fall and supplementals. City Manager Romaniello emphasized the need for a program budget to reflect the increases and day -to -day needs of departments - reflected over a 3 -4 -5 year projection. Councilman Schuldt indicated using the reserves to take care of all the supplementals - but making it a one time procedure so everything is brought up- to -date. This prompted a lengthy discussion on the reserve funds. Discussion was then initiated regarding Capital Improvement Funds. City Manager Romaniello indicated that he was not prepared to discuss the Capital Improvement Program in any great detail at this time. ADJOIIYHKENT - No other business coming before Council at this session, the meeting was adjourned at 6:20 P.M. to June 25, 1985 at 7:00 P.M. APPROVED: U11 C K. Armstrong, Mayor -2- City Clerk Council Minutes June 25, 1985 X G57