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Home My WebLink About2015-06-18MINUTES ADJOURNED REGULAR PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, JUNE 18, 2015 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Weber convened the meeting at 3:04 p.m. II. ROLL CALL Present: Member Jan C. Harnik Member Sabby Jonathan Vice Chairman Robert A. Spiegel Member Van G. Tanner Chairman Susan Marie Weber Also Present: John M. Wohlmuth, Executive Director David J. Erwin, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager Capt. Susan Trevino, Chief, Palm Desert Police/Riverside Co. Sheriffs Department Sgt. David Adams, Palm Desert Police/Riverside Co. Sheriffs Department Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: None MINUTES ADJOURNED REGULAR PALM DESERT HOUSING AUTHORITY MEETING JUNE 18, 2015 With Authority Board concurrence, Chairman Weber adjoumed the meeting to Closed Session of the City Council at 3:05 p.m. She reconvened the meeting at 4:04 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. CONSENT CALENDAR A. MINUTES of the Housing Authority Meeting of June 11, 2015. Rec: Continue to the meeting of July 9, 2015. B. CLAIMS AND DEMANDS AGAINST CITY/HOUSING TREASURIES - Warrants Dated 5/29/2015 (Joint Consideration with the Palm Desert City Council). Rec: Approve as presented. C. HOUSING COMMISSION MINUTES for the Meeting of May 13, 2015. Rec: Receive and file. Upon a motion by Spiegel, second by Tanner, and 5-0 vote of the Authority Board (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None), the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None VII. RESOLUTIONS None VIII. NEW BUSINESS None IX. CONTINUED BUSINESS None 2 MINUTES ADJOURNED REGULAR PALM DESERT HOUSING AUTHORITY MEETING X. OLD BUSINESS None XI. PUBLIC HEARINGS JUNE 18, 2015 A. REQUEST FOR ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2015-2016 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Wohlmuth was pleased to present the 2015-2016 Fiscal Year Budget, stating it was a $51.725 million revenue estimation and a $51.713 million expenditure plan, which is a balance budget of a little under $12,000. He recalled for the Council it had two Budget Study Sessions in preparation with Council input. He added that to his knowledge, this was the first time the public safety portion of the budget has broken 50.1 % of the total expenditure and revenue projections. He explained Sheriff services went up 7%, similarly, fire services with $31.87 million public safety of the $51.725 million of the General Fund Budget. Combining both the Fire Tax and General Fund, the total is $63,606 million in revenue. He congratulated the Finance Department and department heads for presenting a balanced budget and an expenditure plan, which staff believes will meet the priorities of the Council, the Strategic Plan, and hopefully the needs of the community moving forward with this fiscal year. Councilman/Member Jonathan requested brief answers to some of his questions, which are as follows: With regard to the sales tax revenue, there is a notation that a pessimistic increase would be 1 % and an optimistic increase would be 4%, but the projected increase is 6%, which is an excess of the optimistic rate, questioning if that was realistic. Mr. Gibson replied that the City revises what it's estimating for sales tax at mid year, and taking that into account, the percentages work out. Further responding, he confirmed it was a percentage of an increase over what is actually expected to happen. - In the current year's budget, a $903,000 tax increment was anticipated, but apparently it has not materialized. Mr. Gibson explained that with the elimination of Redevelopment and the Successor Agency process began, there was money taken from Redevelopment and allocated to all the taxing entities, including the 3 MINUTES ADJOURNED REGULAR PALM DESERT HOUSING AUTHORITY MEETING JUNE 18, 2015 City of Palm Desert. Since then, the City has not received any more money. However, as far as his calculations for Successor Agency reimbursement of staff on Administration, he factored that $903,000 with that number, so in the end there is a net wash. But as far as taxes coming from the County, the City is getting zero from them now. With the loss of almost $1 million from the budget, was the City still expected to have a balance budget in this current year. Mr. Gibson answered it would. The Fire Expense has a shortage of $3 million with the expenses exceeding the revenue, which is funded by a transfer from the General Fund. So when the City Manager stated he's expecting to have a balanced budget, was it inclusive of the $3 million transfer to cover the fire expense deficit. Mr. Gibson answered it was included. Did the budget projections take into consideration Council's decision to make modification to the Visitor Center, which would provide a savings of $288,000. Mr. Gibson said it did not, because when the public hearing was noticed, the documents had to be ready. Therefore, it was too late to make any adjustments to this budget. Obviously, there will be some savings once the changes are implemented. Mr. Wohlmuth clarified the savings wouldn't be $288,000, because the lease on San Pablo runs through November 30, so it will carry into this fiscal year. He agreed there will be some savings, because operations will be moved into City Hall for technology and social media. However, it would be three quarters of the fiscal year's savings, stating a mid -year budget adjustment will be brought back to Council, given that this will carry through the 2015-2016 fiscal year with the lease at the Visitor Center. How much money was in the General Fund Reserve. Mr. Gibson responded there was approximately $67 million, but if all the funds were added such as Special Revenue Funds, Service Funds, etc., it was around $63 million. Further responding, he confirmed $67 million by the industry standards was quite conservative and safe. 4 MINUTES ADJOURNED REGULAR PALM DESERT HOUSING AUTHORITY MEETING JUNE 18, 2015 Mr. Wohlmuth added Council's policy is one full year of the General Fund's operating revenue to be in reserve. Councilman/Member Jonathan commented there was no pressure to add to the General Fund, because a balance budget was good enough. Mr. Gibson said staff was guesstimating, because the City hadn't collected June's Transient Occupancy Tax, so there's about a $2.5 million in revenue on the plus side. Councilman/Member Jonathan commended Director of Finance for the fine job done over many years, including staff and City Manager for presenting a balance budget to the City Council, which should never be taken for granted. Mayor Pro TemNice Chairman Spiegel commented his colleagues will learn that Mr. Gibson is very conservative in his projections and has been for the last 21 years, and he has put the City in good stead. Mayor/Chairman Weber declared the public hearing open and invited public testimony FAVORING or OPPOSING the proposed Financial Plan for Fiscal Year 2015-2016. With no public testimony offered, she declared the public hearing closed. Councilman/Member Jonathan moved to: 1) Waive further reading and adopt Resolution No. 2015 - 60, adopting a City Program and Financial Plan for the Fiscal Year of July 1, 2015, through June 30, 2016; 2) waive further reading and adopt Resolution No. 2015 - 61, establishing the Appropriations Limit for Fiscal Year 2015-2016; 3) waive further reading and adopt Resolution No. HA - 76, adopting a Housing Authority Program and Financial Plan for the Fiscal Year of July 1, 2015, through June 30, 2016; 4) waive further reading and adopt Resolution No. 2015 - 62, setting the Salary Schedule, Salary Ranges, and Allocated Classifications for Fiscal Year 2015-2016; 5) by Minute Motion, approve the Out -of -State Travel as listed in the attached memo. Motion was seconded by Spiegel. Councilman/Member Tanner congratulated Mr. Gibson for his conservative estimates on the Budget, which is exactly how the City of Palm Desert has helped itself to having a $63 million reserve. Councilmember/Member Hamik concurred, stating it was a lot of work to get the budget done a week in advance, and the best news was that the Triple Flip will end in 2016. 5 MINUTES ADJOURNED REGULAR PALM DESERT HOUSING AUTHORITY MEETING JUNE 18, 2015 Mayor/Chairman Weber said she realized the Council put staff under a lot of pressure to get the budget done early; therefore, she commended staff for all their work. Mayor/Chairman Weber called for the vote and the motion carried by 5-0 vote (AYES: Hamik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). XII . REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AUTHORITY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AUTHORITY None XIII. ORAL COMMUNICATIONS - C None XIV. ADJOURNMENT With Authority Board concurrence, Chairman Weber adjourned the meeting at 5:06 p.m. ATTEST: RAC ELLE D.ASS N, ECG RE PALM DESERT HOUSING AUTHORITY SUSAN MARIE WEBER, CHAIRMAN 6