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HomeMy WebLinkAboutMin - CC - 1999.06.09CITY OF BURLINGAME CITY COUNCIL STUDY MEETING Wednesday, June 9,1999 Conference Room A Mayor Mary Janney convened the city council study session on the above date in Conference Room A at 7:00 p.m. CouNcII- pRESENT: GelllceN, JANNEy, KNIcgt, O'MeuoNv, SrwrLLI Srerr PRpspNr:ANnBRsoN, ARGyRrs, BAGDoN, Bgct<pR, EscorrIpR, MIssEL, MoNRog, RULLY, ScnweRrz, WILLmus OrHpRs PRgspNt: RppRpspNrATIvES oF THE PLINNITNc CorrllvtIssIoN, LInRe,Ry BolRo, CHelaspn or. CouIraBRCE, BROADWAY BUSINBSS IUPROVBIT,TCNT DISTRICT, eNo CorrruuNITY GRoups 1. Revrew Pnoposso 1999-2000 Buocsr eNn Cepnel Pnocnavt The city manager began with a overview of the budget. The general fund budget of $25.8 million will be increasing 5.6%; the enterprise funds are $11.5 million, increasing l2.l%; financing and grants are $1 million, decreasing 9.2%; capital improvements $15 million, increasing 8 .7 % ; for a total budget of $53 .3 million, an increase of 7 .7 %. The major changes include a record capital improvement budget emphasizing infrastructure, an expanded 5 year(+) capital program that included over 200 projects, new programs for golf, teen/aquatics, fire advanced life support JPA, and design review, Without increased capital projects, increased cost of water purchases and new programs the budget would increase less than 3 % . In reviewing the financial outlook, it was noted that revenues are expected to return to reality. Hotel tax will be increasing less than2% for the current fiscal year and sales tax approximately 4%. We've had a loss of rental car sales tax. Total general fund revenue growth for 1998-99 is estimated at2.7% and for 1999-2000 at2.5%. We will be using fund balances for capital projects in both 1998-99 and 1999-2000. In the future, there is a need to match the revenue and expenditure growth. The manager reviewed the two general fund budget graphs showing revenues and expenditures for the past ten years and the major revenues of sales, hotel, and property taxes. It was noted that the gap between the revenue and expense line is the funds available for capital improvements. While we've had three years of revenues growing faster than expenditures, the slowing of revenue growth is reducing the gap between the lines for 1998-99 and 1999-2000. The public works director reviewed the capital improvement section of the budget. He noted that there had been a major expansion of this section based on staff work completing master plans for our major systems. The main limiting factors in the capital improvement program infrastructure are funding availability and staffing. The program has been broken into seven major categories including streets, stonn drains, sewers, water, city facilities and equipment, parking, parks and trees. The streets portion of the budget includes $6.2 million of existing s43 funds, $4 million requested new funds, $16.7 for years 2-5, and $2.5 million for beyond year 5 for a total of $29.4 million. He next explained the components of the streets budget including $1.1 million for paving, $1.3 million for traffic signalization, $1.9 million for bike paths, $2 million for Airport Boulevard street lighting, and $6 million for streetscape. The storm drainage categories noted some $23 million worth of needed improvements. We have capacity problems on four of our creeks in terms of meeting a 3O-year storm criteria. The sewer portion of the program outlines $17.1 million in needed improvements including a treatment capacity study of the sewer treatment plant. The water section includes the tri-city water project and $21.1 million worth of estimated projects. Storage continues to be a major concern. In terms of city facilities, $18.2 million is detailed; the major component being the $10.2 million for the public works corporation yard. Under parking, the plan calls for $4.6 million although this number will undoubtedly changc based on the traffic study currently under way. Under parks and trees, $14.1 million in projects is noted; the largest portion of which is for the current construction at the landfill. In total, the 5-year plan details 217 projects over a 5 * year time period with a total cost of $127 million. The city continues to age and we'll be 100 years old within the next decade. We have a very aggressive capital improvement program compared to many of our neighhors. Council next moved to the operating portion of the budget. Councilman Galligan reviewed the city hall and public works department budgets including the city council budget, city manager, clerk, finance, attorney, planning, personnel, central services, retirement, community promotion, election, building inspection, engineering, streets, street lighting, sewer, sewer treatment, equipment maintenance, and water budget. Vice Mayor Knight reviewed the police department and parks & recreation depaftment. She noted that there is additional staffing for parking enforcement; and the parks & recreation programs are expanding. The parks department seems to be adjusting well to significant personnel changes that have occurred in the last year in that division. The golf center budget estimates are preliminary and subject to change. Councilman Spinelli reviewed the library portion of the budget. He noted that fees and revenues are up as a result of the new Hillsborough contract and increased collection of library fines and fees. The usage of the library continues to increase although the net budget increase is 3.3 % and within budget guidelines. Mayor Janney reviewed the fire budget. She noted that there were negotiated salary increases in January and June. The department is reviewing wa\./s to better use the constant manning account, and disaster preparedness is up as a result of increased public education over Y2K and improvements to the emergency operating center. Budget chairwoman O'Mahony thanked the staff for responding to the message the council gave in January concerning infrastructure. She reviewed portions of the 1991 budget noting that at that time, sales tax was more than hotel tax; now that is no longer true. She emphasized that we needed to continue to stress infrastructure. June 9, 1999 544 Burlingame City Council Councilman Galligan noted his concern about use of fund balance in the water and sewer funds to support the capital program. Because depreciation is a non-use of cash and we have the potential for increased water revenues if rainfall returns to normal, he felt that the level of expenditure was appropriate for this year but we need to be aware that we will need to increase rates in the future. Councilwoman O'Mahony discussed the funding for the convention bureau. She felt that a condition of next year's increase should be that other cities should follow the 4% funding formula and pay their fair share. Mayor Janney noted that this expanded participation in the funding formula is a strong goal of the bureau. After council discussion, there appeared to be consensus that funding for 1999-2000 would stay as proposed in the currently proposed budget; but for the year 2000-01, Burlingame would expect other cities to follow the 4% formula. Councilman Spinelli and Vice Mayor lhight indicated they could support the idea. Councilman Spinelli thought a 4% increase for this year until other cities follow the formula might be a more appropriate strategy. Councilwoman O'Mahony questioned whether we might, at some time in the future, need to create our own bureau. Councilman Galligan believed that for the year 2000-01, we may need to look back to the $412,000 base if other cities do not increase their funding. Mayor Janney indicated we need to be very careful of the message we are giving to our hotel industry so that we continue to support their efforts to contribute to the community. The city manager noted that in some cities hotel tax is very minor, and that council should focus on the major hotel cities' contribution. Council next moved to community groups. The total budget allocated is $37,000 where requests are over $57,000. It was noted that we have not yet received a request letter from Poplar ReCare who we have funded in the past. Councilwoman O'Mahony indicated support for funding the Arthritis Foundation. Vice Mayor Knight felt that we should fund the same groups at the same level as last year, and we need to focus on groups that provide service to our city. Councilman Spinelli agreed with Vice Mayor Knight but indicated he could support another $1,000 for Project Read. Councilman Galligan would like to increase the total funding for community groups by 4%. He felt we should support the Sustainable San Mateo proposal. Mayor Janney noted that the Arthritis Foundation has a national funding base. The majority of the council seemed to support the same funding allocation as last year. 2. CouNcrr- Couupxrs Councilman Galligan noted that he wanted to be sure that we stop using reserve funds next year. Vice Mayor Knight mentioned that this is her final budget and she would like to see the council continue to use caution into the future. Councilman Spinelli felt that we have been provided good fiscal planning and that infrastructure is one of the most important items in the budget. There were no further cornments 3. FRou rHp Fr-oon Marcy Pagels, representing Sustainable San Mateo, detailed how their money is spent and potential benefits to Burlingame for funding their group. Burlingame City Council 545 June 9, 1999 l Ross Bruce, representing the Broadway merchants, requested the council set aside funds to acquire the small, boarded-up house ^t ll40 Laguna for additional parking in the Broadway area. AorouRNuBNr The meeting adjourned at9:12 p.m. The budget public hearing will be on June 21, 1999. Judith A. Malfatti City Clerkv I June 9, 1999 546 Burlingame City Council