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2015 Aug 31 - CC MIN SPC (Strategic Planning)SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL MONDAY, AUGUST 31, 2015 El Segundo Public Library 111 W. Mariposa Avenue, El Segundo, CA 90245 6:00 p.m. 6:00 P.M. SESSION CALL TO ORDER — Mayor Fuentes at 6:01 PM PLEDGE OF ALLEGIANCE — Council Member Atkinson ROLL CALL Mayor Fuentes - Present Mayor Pro Tern Jacobson - Present Council Member Atkinson - Present Council Member Fellhauer - Present Council Member Dugan - Present PUBLIC COMMUNICATIONS — (Related to City Business Only) — 5 minute limit per person, 30 minute limit total. None SPECIAL ORDERS OF BUSINESS: Greg Carpenter, City Manager, gave a brief overview of the Agenda for the meeting. 1. Consideration and possible action regarding a strategic planning workshop resulting in City Council receiving and filing of staff's analysis and recommendations for the Fiscal Year 2015 -2016 Preliminary Budget which includes Council approved departmental requests from August 3rd Strategic Planning Session. Staff will present an update Fiscal Year 2014- 2015 year -end estimates and fund balance. Misty Cheng, Acting Finance Director, gave a report on the FY 2014 -2015 Fund balance, 2. Information System Division Assessment updates — Presented by Larry Klingaman, IS Manager. Council discussion and questions 3. Recreation & Parks updates — Presented by Meredith Petit, Recreation and Parks Director. Council discussion and questions 4. Fire Equipment updates — Presented by Kevin Smith, Fire Chief. Council Discussion and questions 5.. Public Works and Capital Projects updates — Presented by Stephanie Katsouleas, Public Works Director and Misty Cheng, Acting Finance Director. Council Discussion and questions 6. Transient Occupancy Tax Option — Presented by Greg Carpenter, City Manager and Misty Cheng, Acting Finance Director. Council Discussion and questions Council Consensus directing staff to begin the process of writing a TOT (Transient Occupancy Tax) initiative for placement on the April 2016 ballot. Mayor Fuentes recessed the meeting at 7:11 PM Mayor Fuentes reconvened the meeting at 7:26 PM 7. A revised Fiscal Year 2015 -2016 Preliminary Budget with various options to meet the needs of the approved departmental requests and an updated fund balance for each option — Presented by Greg Carpenter, City Manager and Misty Cheng, Acting Finance Director. Council Discussion and questions MOTION by Council Member Atkinson, SECONDED by Council Member Fellhauer to approve modified Option #2 of the FY 2015 -2016 Department requests. (Options are listed in the presentation attached to the minutes) MOTION PASSED BY VOICE VOTE. 4/1 YES: Atkinson, Dugan, Fellhauer, Fuentes; NO: Jacobson. Option #2 worksheet with modifications by Council for the Fiscal Year 2015 -2016 Preliminary Budget is attached. 8. Council may raise other developments, fiscal policy, capital projects and other related topics as part of staff's preparation for the Fiscal Year 2015 -2016 Preliminary Budget. None 9. Dates and time for FY 2015 — 2016 first hearing and budget adoption. Misty Cheng, Acting Finance Director, stated the Preliminary Budget for Fiscal Year 2015 -2016 will be ready for the first hearing at the regular City Council Meeting of September 15, 2015. Council consensus to hold a Special City Council meeting on Monday, September 28, 2015 to adopt the Final Budget for Fiscal Year 2015 -2016/ ADJOURNMENT at 8:43 PM (i 'UiM4�w Tracy WeaNUr, City Clerk Description Projected Beginning Fund Balance Estimated Operating Revenues Transfer in Total Revenues Estimated Operating Expenditures Transfer out Total Expenditures Projected Ending Fund Balance Less: Designation Projected Undesignated Fund Balance 19% Required Reserve Excess /(Under) Reserve Departmental Requests Police 3 Police Officers requested, 2 approved 1 Promotion Officer to Sergeant Document imaging /scanning IS Professional & technical 1 Developer Fire Restore Senior Management Analyst 2 SDI GE Spot Free Systems Telestaff Automated Scheduler Lexipol Digital Fire Policy Manual 2 ECG Monitors 15 Firefighting Turnouts 2 Fire Engines (1 approved, 1 funded ERF) 2 Rescue Ambulances (1 approved, 1 funded ERF) City Manager Emergency Coordinator City Clerk Part -time employee Finance License Permit Specialist II Administrative Specialist Budget /Payroll Supervisor Public Works 3 Street Maintenance Workers Operating Supplies Small Tools & Equipment Laundry & Cleaning Library Library Assistant �tlgr?tllna 8¢rl1�IL0�1?j"�°.(Y Building Inspector I License Permit Specialist I RSI Construction Supervisor Recreation and Parks_ Part -time Personnel Part -time Personnel for Cable Reclass Administrative Specialist Upgrade audio equipment and web -cam Tree Maintenance Contract Centennial & Rose Parade Repairs & Maintenance Truck Campus El Segundo Turf Replacement Adjustments: Add: Rec Park Benefits Add: Equipment Replacement Charges Less: Non - general impacts Total Requests Revised Operating Expenditures yYrgynp Att'p,;,Srt�;,(, Revised Amount Ootion 2 13,031, 668 14, 351, 768 14, 351,768 62,672,000 62,715,000 62,779,260 368,600 50,000 50,000 63,040,600 62,765,000 62,829,260 62,072,100 62,309,500 62,309,500 1,370,000 950.,,000 700;000 63,442,100 63,259,500 63,009,500 12,630,168 13,857,268 14,171,528 (475,000) (1,100,000) (1,100,000) 12,155,168 12,757,268 13,071,528 11,907, 680 11,915,850 11,928, 059 247,488 841,418 1,143,469 9rWD.gLAr ptggq %j ti Arnru yrs Y N Option 2 440,800 440,800 y 38,100 38,100 y 100,000 100,000 y 50,000 y 4,000 115,000 y 5,600 5,600 y 7,400 7,400 54,000 54,000 41,400 41,400 39,000 39,000 y 51,000 51,000 531,800 531,800 267,300 267,300 y 122,900 56,000 32,500 y 38,200 38,200 y 22,200 22,200 y Revenue Adjustment 64,260 64,300 50,000 Film Permits 14,300 Commercial Industrial 64,300 62,715,000 Reported in SPS 62,715,800 Per Revenue detail worksheet (800) Commercial Industrial 293,867 $76,500 saving from TRAP 38,100 50,000 115,000 5,600 39,000 funding from PSAF - funding from ERF funding from ERF 32,500 38,200 22,200 224,900 224,900 y 224,900 10,000 10,000 y 10,000 500 500 y 500 2,000 2,000 y 2,000 76,500 76,500 50,000 29,000 y 29,000 7,600 7,600 y 7,600 4,000 4,000 y 4,000 4,000 4,000 y 4,000 75,000 75,000 y 75,000 30,000 25,000 y 25,000 190,000 30,000 y 30,000 40,000 30,000 150,000 150,000 49,100 4,900 (926,600) (76,500) 2,557,300 1,699,100 1,023,967 64,629,400 64,008,600 63,333,467 700,000 64,033,467 Projected Ending Fund Balance 10,072,868 12,158,168 13,147,561 Less: Designation (475,000) (1.,'9' „00,000) (1;100;000) Projected Undesignated Fund Balance 9,597,868 11,058,168 12,047,561 19% Required Reserve 12,279,586 12,161,634 12,033,359 Excess /(Under) Reserve (2,681,718) (1,103,466) 14,203 Option q2 - reduce economic uncertainty by $250,000 to increase excess reserve to fund requests Note: Due to the Equipment Replacement Fund having sufficient funds, the Ambulance amount of $5,300 has been absorbed by the ERF rather than funded by the General Fund. Therefore, the Excess Reserve amount has increased from $7,896 to $14,203.