|
|
 |
|
|
|
From Chris Cagle Hello Everyone: Here is the city update - you should take the time to read this one. Subjects: ---------------------- On Friday the preliminary budget proposal came out. There are several fee increases and tax increases proposed along with some budget and program cuts. I've summarized the more important points for you below. Note: the budget has two sections and each has its own page numbers. The first section is the manager's commentary and the second section is the budget detail. Over the next three years we will be short 8-10 million dollars and so a variety of things are being recommended by the City Manager. You can obtain a copy of the budget from the City Clerk. "The City's General Fund deficit is attributed mostly to the increases in personnel related costs. These costs include higher employee health insurance costs, workers compensation costs, property and liability insurance, legal costs, and the higher costs of compensated absences. The increased costs for CalPers will be the largest burden over the next three years", pg. 20. Potential Program Closures 1. Close Fire Station # 3, pg. 39, this is the harbor patrol station in the marina. According to the manager, "the cost of the harbor patrol weighed against its workload, provides the City with a meager payback for limited resources", pg. 40. The recommendation to the council is to direct the City Manager to prepare a transition plan for the disbanding of the Harbor Patrol by January 1, 2004, pg. 41. 2. Close the Communication Center, pp. 38-39. 3. The Jail, pg. 39. Potential Fee increases being recommended Sewer Service Charge - Recommendation to establish a waste water service enterprise fund and to consider the establishment of a wastewater utility sewer service charge as soon as possible, pg. 33. Emergency Medical Services fee (EMS) - Consider establishing an EMS enterprise fund that is self-sufficient from general City revenues. It is suggested that the City begin as soon as possible to bill for reimbursement of certain paramedic services. It is also suggested that the council consider asking voters for approval of a special tax for paramedic services in lieu of a loan from the general fund to initially subsidize the EMS enterprise fund until it becomes self-sufficient. The recommendation is to establish paramedic and emergency medical service fees for service and to establish an EMS enterprise fund, along with a management study of the Fire Dept. and some lobbying efforts on the state and federal level for cost recovery legislation, pp. 34-38. Harbor Dredging fee - Dredging is done to improve the channel for the use of boaters, the manager is suggesting a user pay principle where the boater pays for the expense of dredging. The recommendation is to establish a dredging fee of $5.00 per month per boat slip in King Harbor, to be used for dredging projects. This fee would free up money for other projects such as the Strand/Bike path project, pg. 47. Street and Roadway impact fee - recommendation to establish a street and roadway impact fee of 1% of building permit valuation for each construction project undertaken in the city, pg. 48. Other fees - there are two other fees being currently being discussed that
are not outlined in the budget, 1. an increase in the trash fee of approximately
$2.41 a month and 2. a special assessment for a street landscaping and lighting
district starting July 1, 2003. This would be about $60 dollars extra a year for
someone who owns a house with a lot 40 feet across. We are talking about this on
Tuesday at the council meeting. New Taxes Recommended Transient Occupancy Tax - recommendation to place on the November ballot a measure to authorize the City Council to raise this tax from 10% to 12%. This is a tax applied to visitors who stay in hotels and motels within the city. This would increase the general fund revenue by $400,000 dollars, pg. 46. Business License Tax - Consider asking voters to raise the business license
tax rates. Direct City Manager to conduct a comprehensive study on business
licenses taxes, report back no later than March 1, 2004, pp. 44-46. Other Cuts Other budget facts being reported: 2. At the present time...at least 46.7 million from the CalPers portfolio loss must be recouped by the City in the form of rate increases, pg. 7. 3. The CIP (Capital Improvement Program) assumes no funding for sewer projects unless a sewer service charge is enacted, pg.32. 4. The number of structure fires in Redondo has declined to only 24 in 2002, pg. 34. 5. The State economic crisis of 1991-92 resulted in the shift of property tax revenues from cities and counties to school. Since then, the City of Redondo has lost over 20 million in property tax revenue, pg. 36. 6. General fund revenues are estimated to increase in FY03-04 to $48,939,940, which represent an increase of $2.0 million or 4.3% over FY02-03 mid year revised budget. $1.3 million is in tax based revenue sources, pg. 19. 7. Total budget cuts to the general fund are $850,420. This represents a reduction of 1.7% from the previous budget year, pg. 43. -------------------------- The City Manager revealed his opinion within the budget document on how the HOC process should proceed, pp. 42-43, and that is to simply reduce the maximum housing allowed to 1,800 and send it back to the planning commission for consideration. And, he would like the Council to require developer Mar Ventures to submit their project plan for the Village Core development area within 90 days. At the last meeting our process for building consensus was presented to the council and it was rejected in its present format. Council asked that the mayor and I work on modifying it over the next 30 days. I'll let you know what changes are suggested when I meet with the Mayor. --------------------- Tuesday's Council meeting Agenda 5/20/03 Mike Gin will have a farewell reception from 4:30 to 6:30 pm upstairs in the Library, then at 6:30 at the council meeting he will be presented with the key to the city by the Mayor. Afterwards, Don Szerlip will be sworn into office with a short reception. Item 17 - The city has been working on lease terms for Mar Ventures to purchase the Redondo Beach Marina Leasehold and this section outlines the lease terms. This is the area referred to as Village Core South, its about 7 1/2 acres Item # 29 - continued discussion of switching our current trash hauler Waste Management to the staff recommended EDCO Disposal Corporation. Item # 30 - Street and Lighting assessment fee considered, could be $60 a year. ----------------- Feel free to forward this email to your friends. Chris |
|
|