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1992/06/03 City Council MinutesRohnert Park City Council Minutes June 3, 1992 The Council of the City of Rohnert Park met this date in adjourned regular session in the City Offfices, 6750 Commerce Blvd., Rohnert Park, CA with Vice Mayor Hollingsworth presiding. Call to Order The adjourned regular session was called to order at approximately 7:00 a.m. by Vice Mayor Hollingsworth. Roll Call Present: (4) Councilmembers Eck, Hopkins, Reilly, and Vice Mayor Hollingsworth Absent: (1) Mayor Spiro Staff present for all or part of the meeting: City Manager Netter, and Finance Director Harrow. 1992 -93 Budget The City Council commenced a work session on the proposed City Budget for 1992 -93 as presented by City Manager Netter. Comments were made by City Manager Netter in regards to the format of this year's 1992 -93 proposed budget and reviewed highlights as listed in the 1992 -93 budget memo. In the budget discussions, the Council requested staff to provide the number of new jobs generated by the stores being built on the west side of town and the estimated number of employees who are Rohnert Park residents. City Manager Netter explained Rohnert Park's deficit position and how staff has proposed to balance the 1992 -93 budget by using approximately $200,000 in reserves, deferring street overlay projects, by suspension of the 10% set aside into the infrastructure reserves, this amounted to $628,000, and suspension of the set aside for reserves for additional recreational facilities in the amount of approximately $130,000. In addition, the CDA principal payments in the amount of $458,000 would be used to balance the General Fund budget. There was general discussion on how Rohnert Park managed to get into the deficit position. City Manager Netter indicated that this will be the second year of a hiring freeze for the City, but for the three years prior, the City added 46 new employees. The costs of salaries and benefits of these 46 new employees are catching up with the City. In addition, new facilities are being added, such as R Park, M Park, the new Public Safety Facility, the Senior Center, etc. He explained that when facilities are added, it costs the City more to operate and maintain those facilities and programs. 1 Rohnert Park City Council Minutes June 3, 1992 There were general comments by the City Council in regards to taxing Rohnert Park's citizens as opposed to cutting budgets, staffing, and programs, and how there is a fine balance between taxing and the costs of services. There was a suggestion that the City should privatize wherever possible, which may even include the privatization of the Performing Arts Center. There was an extensive discussion of the City and its development of commercial and industrial bases to help raise revenues generated by sales taxes. In addition, there was a brief discussion on working towards a third golf course on the west of town on the Pimentel property to help generate new revenues for the City. The Council agreed that the City should take an active part in generation of new income, which may include increasing the TOT tax, Real Property Transfer tax, and other sources. Councilman Eck requested staff to insert a section in the budget on the Wine Center detailing the financing program, which would include new revenues generated by the 1% increase in TOT tax, the rentals generated by both the Wine Center and the Chamber of Commerce, and the cost of the City providing promotional funds to the Sonoma County Wineries Association. Councilman Hollingsworth commented on the stadium land and the possibility of selling it to maximize its highest and best use. At this point, it looks like the stadium is not the highest and best use for the property. By possibly a potential sale, this property would help the City in its financial difficulties. This should only be looked at as a last resort measure. Councilman Eck suggested that sometime in the future the City bring back the plans for the use of all the property around the stadium for Council's review and discussion. Discussion then continued on the Performing Arts Center's operation. Councilman Eck and other Councilmembers commented on the fundraising and the possibility of hiring some individual on a commission basis. City Manager Netter indicated that he had discussed this matter with several organizations and was told that the Philanthropist Society stated that it was not ethical to ask a fundraiser to work on a commission basis. City Manager Netter inicated he would check this out further. Councilman Reilly questioned whether the Performing Arts Center might be administrative top heavy and inquired about contracting out or merging some positions. Discussion continued on the phase-out program of the resident companies and other matters in regards to the Performing Arts Center. Rohnert Park City Council Minutes June 3, 1992 City Manager Netter indicated that the community promotion detail was shown on page 52 and that the Council should decide which groups it desires to hear presentations for at an upcoming budget session. Adjournment Because of scheduled appointments by some of the Councilmembers, Vice Mayor Hollingsworth adjourned the meeting at 8:40 a.m. to Thurs., June 4th, at 7:00 a.m. to continue the discussion and work session on the 1992 -93 budget. City anager /Clerk 3 Mayor Pro Tempore