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1991/06/17 City Council MinutesRohnert Park City Council Minutes June 17, 1991 The Council of the City of Rohnert Park met this date in adjourned regular session in the City Offices, 6750 Commerce Boulevard, Rohnert Park, CA with Mayor Eck presiding. Call to Order The adjourned regular session was called to order at approximately 4:00 p.m. by Mayor Eck. Roll Call Present: Four (4) Councilmembers: Hollingsworth, Reilly, Spiro, and Mayor Eck Absent: (1) Councilmember Hopkins Staff present for all or part of the meeting: City Manager Netter, Assistant to the City Manager Leivo, and Finance Director Harrow. 1991 -92 Budget The Council commenced a work session on the proposed City Budget for 1991 -92 as presented by City Manager Netter. Comments were made by City Manger Netter in regards to the format of this year's 1991 -92 proposed budget and reviewed highlights as listed in the 1991 -92 budget memo. There were general comments by the Council in regards to taxing its citizens as opposed to cutting budgets, staffing, and programs, and how there is a fine balance between taxing and cost of services. It was commented that a strategy should be developed on a pay -as- you -go approach and that certain fees and taxes should be raised possibly annually in order to avoid major increases at one time. There was general discussion on proposed increases in the Transient Occupancy Tax (TOT) whereby Councilmember Spiro recommended possibly raising the Transient Occupancy Tax to 12% which would generate an approximate $160,000 additional revenues to the city. Discussion continued on the proposed Wine Center and the impacts a 2% increase would have on the Red Lion Inn and other hotels and motels in the area. Other fee increases that were discussed included the Real Property Transfer Tax, the Business License Fee increases, water and sewer rates, etc. 1 It was decided that on the Business License Tax, the proposed fee increases would be submitted to the Chamber of Commerce to give them sufficient time to develop a proposal that could be applied to businesses for a fee increase for businesses in the Rohnert Park community. City Manager Netter indicated that the Business License fees have not been increased since 1982 and that it was not urgent for an increase in the next couple of months. This is due to the fact that staff would recommend an increase that would not be effective until January 1, 1992. This does allow sufficient time for the Chamber to develop a proposal and submit it back to the City Council for its review prior to a public hearing and possible implementation of a new fee structure for the businesses of the Rohnert Park community. City Manager Netter continued through the budget memo and explained in detail the operating deficit of $1.7 million to $2.0 million and explained in detail how the 1991 -92 budget was balanced. This is all outlined on Page 1 of the budget memo. City Manager Netter and Finance Director Harrow answered questions in regards to several of the revenues that are listed as well as the loans between the City and the Community Development Agency. Under the golf course operations, Councilman Hollingsworth commented on the structure of the new lease that was adopted a couple of years ago which allows for increases in rates to non - residents. Councilman Hollingsworth indicated that he would like to see some of those new revenues put back into the course for improvement and beautification projects to upgrade the courses. He also indicated there should be a push for additional courses in Rohnert Park which would assist in the long term financial stability of the City. City Manager Netter commented on the use of the stadium and the possibility of enticing a Class A team to locate to Rohnert Park. Councilman Hollingsworth commented briefly on the stadium and said the long range plans of the land that the stadium may indicate that the stadium would have to be torn down for possible selling of the land for other highest and best use of said land or put into other programs for the community. There was discussion on the theatre operations. City Manager Netter indicated that the Community Promotions detail was listed on Page 52.3 of the budget and that Council should indicate which groups from which it desires to hear presentations for at its next budget work session scheduled for June 24, 1991 at 3:00 p.m. The City Council indicated they would like to hear presentations from the following groups: Requested Budget Group Amount Amount Sister Cities $20,000 $ 2,000 Relations Comtee. Son. County Visitors and Convention Bur. $123,586 $ 50,000 Family Services Agency $ 3,500 Family Education Center $ 2,000 Sonoma County Associates for Youth Development $ 17,500 YMCA Battered Women's Shelter $ 5,000 $15,000 combined for all human /social service programs. Further discussion continued on the charitable fundidng for the organizations as listed above. There was general discussion on what staff included in the budget for Council Members' salaries, of which City Manager Netter indicated that the budget included the 5% increase as authorized by law. Mr. Netter indicated also that under Govt. Code Section 36516, and because Rohnert Park's population has exceeded 35,000, Council Members are authorized to receive $400 per month. It was the consensus of the Council to leave the 5% increase in the budget and to have staff prepare the necessary ordinance to be implemented January 1, 1992. Adjournment: The adjourned regular session was adjourned at approximately 6:00 p.m. to the second budget work session scheduled for June 24, 1991 at 3:00 p.m. Cit ar� ger /Clerk 3 ayor