HomeMy WebLinkAbout042397-cc_CCv0001.pdf MINUTES of an adjourned regular meeting of the City Council of the City of Redlands held
in the Council Chambers, Civic Center, 35 Cajon Street, at 8:00 A.M. on April
23, 1997.
PRESENT Swen Larson, Mayor
Pat Gilbreath, Mayor Pro Tem
William E. Cunningham, Councilmember
Gilberto Gil, Councilmember
Gary M. Luebbers, City Manager
Lorrie Poyzer, City Clerk
Steven M. Chapman, Finance Director
Tina Kundig, Accounting Manager
Joshua Lowe, Redlands Daily Facts
Valeria Godines, Press Enterprise
Alisa Slaughter, San Bernardino County Sun
ABSENT Geni A. S. Banda, Councilmember
Additional Appropriation - Animal Shelter - The request for an additional
appropriation to purchase an additional freezer for use at the animal shelter was
not warmly received by the City Council. Although Councilmember Gil
indisposedly moved to approve the request, the motion did not receive a second
and therefore died.
STUDY SESSION - 1997-98 PROPOSED BUDGET
General Fund Capital Outlay - Following discussion, on motion of
Councilmember Larson, seconded by Councilmember Gilbreath, the following
fixed assets were approved for inclusion in the proposed budget, with
Councilmember Cunningham voting NO:
City Council: Xerox 5626 copier $ 2,867.00
City Manager: Gateway P5-166 computer 2,335.00
City Treasurer: Toshiba notebook computer 2,400.00
Public Works: 5-gallon paint shaker 4,800.00
Public Works: Flail mower tractor mount 16,000.00
Public Works: Roof repairs
Civic Center Building A 10,000.00
Civic Center Building B 15,000.00
Fire Station 261 25,000.00
Recreation: 2 Gateway P5-133 computers 3,937.00
Adjourned Regular Meeting
April 23, 1997
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Recreation: HP694C printer 299.00
Fire: Generator 12,000.00
Fire: Airbag 5,500.00
Fire: 3 computer workstations 9,000.00
Fire: Life Pak 1 OC 7,425.00
Total $116,563.00
Library - Library Director Larry E. Burgess presented the proposed budget for
the A. K. Smiley Public Library. Councilmember Gilbreath moved to approve
the Library budget as presented subject to final overview. Motion seconded by
Councilmember Gil and carried with Councilmember Cunningham abstaining
from the vote.
Safety Employees Unfunded Pension Liability - City Manager Luebbers
reviewed the information provided to the City Council on April 9, 1997,
regarding the unfunded liability of the safety employees retirement plan.
Finance Director Chapman explained the City currently has a $2.35 million
unfunded liability for its safety employee retirement plan. The City currently
has a year 2000 funding deadline for its liability. PERS has informed the City
that its safety retirement rates will increase by 30 percent for fiscal year 1997-
98, an increase of $475,000.00 over 1996-97. PERS will allow the City to
amortize the liability through the year 2011 or 2016 at an additional cost of$1.8
million or $2.8 million respectively. The 1997-98 Police and Fire budgets were
submitted using the year 2011 funding deadline as recommended by the Finance
Department. A subsequent option which was discussed in the City Manager's
budget transmittal letter dated April 9, 1997, suggested the possibility of
borrowing the $2.35 million from the Utilities' Fund at 6 percent interest for 10
years. This option would provide the General Fund with an annual cash flow
savings of$1.0,000.00 on a fully amortized loan. However, recent discussions
with Utilities staff indicates that this option is not feasible due to the fact that it
could jeopardize bond covenants and efforts to control the potential for rate
increases. The current employer contribution rate (1996-97) is 17.844 percent.
Mr. Chapman noted that recent discussions with Stone & Youngberg revealed
that Pension Obligation Bonds, although an option, would be too expensive. A
10-15 year bond could carry an 81/4 percent coupon plus cost of issuance which
could add significantly to the principal amount of the debt. Mr. Chapman
presented several funding deadline options which have been studied by staff and
recommended the City amortize the liability through the year 2011. Under this
option, the employer contribution rate would be 16.74 percent; the total
expected contributions necessary to completely amortize the unfunded liability
would be $4,167,488.00 with an annual cash flow savings of $67,000.00.
Councilmember Gilbreath moved to approve this recommendation. Motion
Adjourned Regular Meeting
April 23, 1997
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seconded by Councilmember Larson and carried with Councilmember
Cunningham abstaining from the vote.
Municipal Utilities - Municipal Utilities Director Gary G. Phelps and Chief of
Water Resources Mike Huffstutler presented the proposed budget for the
Municipal Utilities Department. Councilmember Gilbreath moved to approve
the Municipal Utilities Department budget with the corrections noted during the
presentation and with the understanding an additional employee (landfill
superintendent) would be authorized. Motion seconded by Councilmember Gil
and carried with Councilmember Cunningham abstaining from the vote.
City Manager Luebbers reviewed the changes approved by the City Council
during the budget study session. Revised figures will be prepared for
presentation on Monday, April 28, 1997, along with employee negotiation
reports.
ADJOURNMENT
There being no further business, the City Council meeting adjourned at
10:55 A.M. to an adjourned regular meeting to be held on Monday, April 28,
1997, at 9:00 A.M. in the City Council. Chambers, 35 Cajon Street, Suite 2,
Redlands, California.
City Clerk
Adjourned Regular Meeting
April 23, 1997
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