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HomeMy WebLinkAboutTC Min 1992-06-09 TOWN COUNCIL ~ MINUTES CALL TO ORDER Mayor Kuhn called the adjourned meeting of the Town Council of the Town of Tiburon to order at 7:35 p.m., Tuesday, June 9, 1992, in Room 5, Del Mar School, Tiburon, California. A. ROLL CALL PRESENT: COUNCILMEMBERS: Nygren, Friedman, Thayer, Thompson, Kuhn ABSENT: COUNCILMEMBERS: None EX OFFICIO: Town Manager Kleinert, Town Attorney Ewing, Finance Director Stranzl, Minute Clerk Kearney. B. PUBLIC OUESTIONS AND COMMENTS I None. C. PUBLIC HEARINGS (A) The Town Manager reported that the League of California Cities sent the Town a fax this date informing that the State Legislature's Local Government Budget Working Group has submitted a "briefing paper and options" outlining various methods in which local government can assist in resolving the State budget deficit, primarily focusing on the cities' current property tax and vehicle license fee revenues to be reallocated to schools and counties to reduce the State's responsibility for their program funding, resulting in a $412,000 loss to the Town's budget. Therefore, he requested the Town Council place this matter on tonight's agenda and consider adoption of the proposed resolution expressing opposition to this proposal. Motion: To place the matter of the State's reallocation of property tax or vehicle license fee revenues from the cities to the State of California on the agenda for emergency action. Friedman, Seconded by Thayer AYES: Unanimous Moved: Vote: I After discussion regarding the potential devastating financial impacts of the proposed action by the State Legislature, the Town Council agreed to adopt the proposed resolution. .r- TOWN COUNCIL MINUTES #946 6/9/92 1 ~ Moved: Vote: ~I? Motion: ~ To adopt A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON OPPOSING ANY REALLOCATION OF PROPERTY TAX OR VEHICLE LICENSE FEE REVENUES FROM THE CITIES TO THE STATE OF CALIFORNIA Friedman, Seconded by Thayer AYES: Unanimous The Town Manager was directed to forward this resolution to the appropriate governmental bodies and keep the Town Council advised of any developments in this regard. 1. FISCAL YEAR 1992-93 PRELIMINARY BUDGET (General Fund Revenue & Restricted Funds Overview) The Finance Director noted that the proposed legislation by the State as previously discussed has not been reflected in the preliminary budget. He reviewed the revenue projections from the various categories stating that the revenues for FY 1992-93 are estimated to be $3,281,000, an increase of 4.3% from last fiscal year, excluding the State PERS Retirement Funds Surplus. He also reported that the assessed valuation is anticipated to increase by at least 6% and possibly more if real estate activity increases during the next fiscal year. I Mayor Kuhn noted that Taldan has declared bankruptcy and questioned whether the $150,000 development agreement fees owed by them should be included in the revenue projections since it is unlikely the Town will be collecting these fees this fiscal year. After discussion, the Town Council agreed that this revenue source should be removed from the budget, decreasing the total revenue projections to $3,131,000. Councilmember Nygren questioned whether there is any method by which the Town can track businesses operating within the Town without a business license; and the Finance Director responded that the Finance Department has conducted a survey of businesses operating within the Town and stated it is the home occupation businesses that are difficult to detect. He added that the business license revenue for FY 1991-92 increased from previous years. After lengthy discussion concerning how long the Town will be able to rely on the current PERS surplus, Staff was directed to explore the costs of hiring an actuarial firm to explore this issue. The Town Manager summarized the restricted fund overview and noted that a restricted fund for B1ackie's Pasture Improvements is proposed through the transfer of $25,000 from the drainage fund, $100,000 from the insurance reserve fund, and $100,000 from the park development fund. I r- Councilmember Nygren questioned the appropriateness of taking drainage money and putting it into a park; and taking money from the insurance reserve fund when it may be needed for litigation expenses. The Town Manager responded that because of public TOWN COUNCIL MINUTES #946 6/9/92 2 ~ interest, he felt it prudent to establish the Blackie's Pasture Improvement fund, and stated that ABAG has advised that maintaining a balance of $100,000 in the insurance reserve fund is adequate. The Town Manager discussed the need to maintain a sufficient balance in the gas tax fund for possible storm damage repairs; and reported that by eliminating the funds from Taldan and the PERS surplus, the Town will be operating in a deficit during the next fiscal year. There was discussion regarding the correct terminology that should be applied to the funds owed by Taldan Corp. and Vice-Mayor Friedman expressed his opinion that they should not be referred to as a "bad debt" since the funds are being carried in an accrued fashion. However, it was agreed to remove these funds from the projected revenues. Mayor Kuhn opened the public hearing. Don Batten, Belveron Homeowners Assn. President, urged that funds not be taken from the drainage fund to establish the B1ackie's Pasture Improvement Fund; requested the Town not spend a great deal of money for B1ackie's Pasture improvements, but simplify the plans to a general clean up of the area; and requested funds be allocated for Belveron's curbs and gutters and street improvements. I Joy Easom, 1828 Lagoon View Drive, spoke in opposition to removing the $25,000 from the drainage fund; questioned whether transferring $100,000 from the Insurance Reserve Fund would be prudent given the increased insurance costs that will be incurred when the new Town Hall structure is built; and stated the money would be better spent if it was directed to the new Town Hall. The Town Manager responded that property insurance is not paid from this fund, but from the operating budget and this fund is strictly for liability insurance only. Al Kirschbaum, 40 Juno Road, stated the Town needs to reassess its priorities if it is operating in a deficit excluding the two revenue sources from Taldan and the PERS surplus, and Blackie's Pasture Improvements seem to extravagant; questioned the accuracy of calculating the interest on the PERS surplus at 9% and stated the surplus may be used earlier than anticipated if the interest rates are lowered; stated any significant capital expenditure such as B1ackie's Pasture Improvements should receive voter approval and suggested further study to determine an accurate cost. Nicky Wolf, Greenwood Beach Road, stated it is important the operating budget show the true current net and the PERS surplus should reflect expected earnings and transfers into the general fund to cover expenses for that year in order to show a true fund balance. She also suggested the $125,000 identified for the new Town Hall fund should be transferred out of the PERS surplus funds and placed into the new Town Hall fund. ,-.. After discussion, it was agreed that Ms. Wolfs suggestions should be incorporated into the final budget, although it was noted by Mayor Kuhn that the Town Council has not made a decision to allocated the PERS surplus funds to the Town Hall fund and that certain decisions regarding financing must first be made. I TOWN COUNCIL MINUTES #946 6/9/92 3 ~ Katy Bruel, 57 Mercury Ave., spoke in opposition to transferring funds out of the drainage fund and Insurance reserve for the Blackie's Pasture Improvements fund; stated that the Belveron streets should be a priority over B1ackie's Pasture since they are a liability in their current unsafe condition. Mayor Kuhn closed the public hearing. Vice-Mayor Friedman stated that the B1ackie's Pasture Fund has been overfunded and preferred fund transfers be directed to the new Town Hall Fund. Councilmember Thayer concurred. Councilmember Nygren stated that funds should not be taken from the Drainage Fund and street improvements should be a priority. Mayor Kuhn stated there are several areas within the Town requIrIng street improvements which have been prioritized over a five-year period and he noted that consideration should be given to the liability associated with some of the needed improvements. However, Belveron has received a disproportionate share of gas tax revenues for this purpose and other citizens are requesting their share of the funds for needed street improvements in their neighborhoods. I The Town Manager stated that Staff will summarize Council's direction for adoption into the final budget on July 1, 1992. Council discussed that the matter of creating a B1ackie's Pasture fund may need to be agendized for further public hearing. D. COUNCIL. COMMISSION OR COMMITTEE REPORTS (1) The Town Manager suggested the placement of an ad in The ARK soliciting applications for vacancies on various Town committees, boards and commissions. Vice-Mayor Friedman requested a wording amendment to the ad; and the Town Manager stated interviews will be conducted during the next few weeks. Council directed the Town Manager to place the ad; and Councilmember Nygren requested certain vacancies be given priority, such as Planning Commission positions. E. STAFF AND TOWN MANAGER REPORTS (1) Councilmember Thayer reported that the Homeless Coordinating Council is in the process of developing a plan for confronting the issues associated with homelessness in five different regions within the County. He noted that a meeting has been scheduled for Thursday, June 11, 1992, 7:00 p.m. at the Strawberry Recreation Center for a presentation of various solutions, including providing a facility for overnight stays where homeless individuals can shower and I -- TOWN COUNCIL MINUTES #946 6/9/92 4 ~ leave belongings while attending job interviews. Councilmember. Thayer encouraged attendance and stated the results of this meeting will be the implementing point from which decisions will be made at the County level. (2) Council member Nygren reported that she has been meeting with Planning Staff regarding the Countywide plan and stated that recommendations for response by the Town Council will be on the June 17th Council agenda. F. ADJOURNMENT There being no further business before the Town Council of the Town of Tiburon, Mayor Kuhn adjourned the meeting at 9:35 p.m., sine die. ALVIN R. KUHN, MAYOR ATTEST: Qj'kUL'au'~ THERESE M. ENNESSY, TO N Cl:.ERK l I -- TOWN COUNCIL MINUTES #946 6/9/92 5 .