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Home My WebLink About02/12/2004 B A K E R S F I' E L'- D *.~.lan Tandy Harold Hanson Staff: Darnell W. Haynes Mark Salvaggio AGENDA SUMMARY REPORT SPECIAL MEETING BUDGET AND FINANCE COMMITTEE Thursday, February 12, 2004 · 4:00 p.m. City Manager's Conference Room - City Hall 1. ROLL CALL Called to Order at 4:15 p.m. Present:Councilmembers Mike Maggard, Chair; Harold Hanson and Mark Salvaggio - arrived at 4:16 p.m. 2. ADOPT NOVEMBER 24, 2003 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Staff report and Committee recommendation on Fiscal Year 2004-05 Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Shelter Grant (ESG) Annual Spending Plan City Manager Alan Tandy explained due to the fiscal crisis, there are more demands than customarily on this grant source. The February 6th memorandum in the packet outlines a spending plan based on responses to the recent draft plan that was sent out to the Council and to Council discussions regarding swimming pool closures and the fiscal crisis. After the memorandum was prepared, there were additional Council questions on the feasibility of CDBG funding for public safety salaries. Economic Development Director Donna Kunz provided an overview of the February 6th memorandum written in response to City Council question concerning using CDBG funds for spray parks, Police and Fire services, street reconstruction and other Public Services Activities currently charged in the General Fund. Staff recommended the following budget amendments: AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Thursday, February 12, 2004 Page - 2 - · $300,000 for Wayside spray park (Transfer the proposed funding for a spray park at Martin Luther King, Jr. Park) · $33,000 for recreation programs at Wayside and Lowell and busing swimmers to open pools (Transfer from the Lowell Park Trailers project) · $100,000 for street resurfacing (Transfer from Economic Development SE Business Loan Program, which would reduced the total to $277,000) · $250,000 Planz Park spray park (Transfer the balance of the Lowell Park Trailers project of $93,000 and $157,000 from Economic Development SE Business Loan Program, which would leave a balance of $120,000 in the Loan Program) Committee Member Salvaggio expressed concerns that Councilmember Carson may not be supportive of using all the Economic Development Loan Program money and she had also indicated she would rather the funding for Planz spray park come from another source. Staff explained the Economic Development Loan Program money has been set aside for a long time and has not been useful since the passage of SB 975 mandating payment of prevailing wage when building projects with government funding. There is $600,000 in Southeast Tax Increment money, which could be used for loan program requests and also for Fire Station No. 5. This information has been shared with Councilmember Carson. The Committee discussed the serious need to fund Streets and the ability to use Tax Increment monies to fund loan program requests. The Committee unanimously approved staff's recommendation on the above budget transfers, and also transferring the balance in the Economic Development Loan Program to street resurfacing. Community Development Coordinator George Gonzales gave an overview of the total applications received. This year 14 applications were submitted from non- profit and public entities totaling over $3.4 million for FY 2004-05. There were 19 proposals received requesting CDBG assistance for ClP projects from City departments totaling approximately $7.1 million. HUD has provided estimates of FY 2004-05 funding: CDBG at $3,933,000 (plus program income of approximately $50,000) for a total of $3,983,000; HOME Investment Partnership Program at $1,775,000 and HUD will be funding another first-time home buyer program called "American Dream" with an estimated allocation of $146,326, which will provide down payment assistance for qualified families; and Emergency Shelter Grant (ESG) at $146,000. Economic Development Director Donna Kunz explained HUD has a "cap" on the amount that may be spent on eligible Public Services Programs. The City is allowed to calculate 15% of its annual entitlement plus prior year program income to establish the "cap." The calculation determined $612,450 is available for Public Services Programs. Staff proposed the following programs for a total of $308,000 be charged to the Public Services category for FY 2004-05: AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Thursday, February 12, 2004 Page - 3 - Fair Housing - mandated by HUD $ 90,000 Graffiti Removal Program 50,000 Recreation Program 33,000 Bakersfield Senior Center Operations 50,000 S.E. Bakersfield Police substation 85,000 This left a balance of $304,450 that could be charged for FY 2004-05 to the Public Services category without exceeding the allowed 15% "cap." Police. Captain Taylor presented a proposal/request that $270,000 of the CDBG Public Services monies be used to fund three officers (one in the satellite office, one Baker Street Officer and one PAL Officer all assigned to the east side of Bakersfield). This would free up the funding to sponsor four candidates to go through the police academy. These officers along with the eight officers that would be sponsored by a grant would provide 12 officers for the academy. HUD identifies Police Officers for crime prevention services as an eligible CDBG expense when they are serving in Iow and moderate income neighborhoods. This also falls under the Public Services category and is subject to the 15% cap rule. Fire Chief Ron Fraze presented a proposal/request that $252,000 of the CDBG Public Services Program monies be used to fund three Firefighters for Fire Station No. 5. CDBG funds may be used to fund Fire personnel provided the following criteria are met: 1) the service must be a new; 2) serve a qualified Iow and moderate income neighborhood; and 3) be classified under the Public Services category subject to the 15% cap rule. The Economic Development Director suggested in order to make additional capped monies available, the $90,000 for Fair Housing - mandated by HUD be charged to the Affordable Housing Fund in Redevelopment. If the request from Fire and Police were granted, this would leave a funding gap of $128,000. The City Manager stated to achieve seven safety positions, because of the 15% "cap" on CDBG funding, with Committee/Council approval the $128,000 could be funded with General Fund money. For seven safety positions, this is a very Iow General Fund cost. Economic Development Director Donna Kunz explained the $304,450 (capped monies) came from the reduction in funding for the new Fire Station Five in 2004- 05 from $800,000 to $250,000, which is the amount needed for land and design in 2004-05. The balance in CDBG funding of $567,500 less $304,000 leaves a balance of approximately $263,500 that is not in the Public Services cap. Public Works Director Raul Rojas requested the $263,500 because of the need for street resurfacing/asphalt in the Carnation Tract and other Iow income neighborhoods. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Thursday, February 12, 2004 Page - 4 - Committee Member Salvaggio explained the City has never been in a budget crisis this severe in recent history. The Council has had to make some very difficult decisions. He stated he was very supportive of using CDBG funds for essential services, such as Police, Fire, Streets and Recreation, which means not funding the CDBG applications received this year from non-profits. The Committee agreed with the need to make providing essential services, especially Public Safety, Streets and Graffiti, to the public a funding priority this year due to budget constraints in the General Fund. Staff recommended taking the FY 2004-05 Action Plan to the City Council in May and moving forward with the Public Notice, which would need to be published at least 30 days prior to the Council meeting to allow for public comment. Committee Member Hanson made a motion to approve staff's recommendations tO move forward with the Public Notice and forward the FY 2004-05 Action Plan to the City Council; and also include the Committee's recommendations to approve the budget transfers recommended by staff and funding for the following: · Approve request for CDBG funding from the Police Department for three Police Officers to free up funding to sponsor four officers to go through the academy. These officers along with the eight officers that would be sponsored by a grant would provide 12 officers for the academy. · Approve request for CDBG funding from the Fire Chief for three Firefighters for Fire Station Five. · Transfer $90,000 Fair Housing - mandated by HUD to Affordable Housing/or other funding not under the cap. · Fund up to $128,000 from the General Fund to add to capped funding to achieve 7 safety positions under the cap. · Transfer the balance in the Economic Development Loan Program to street resurfacing. · Approve request for CDBG funding from the Public Works Director for the CDBG funding of $263,500 (not under the cap) for street resurfacing in HUD eligible areas. The Committee unanimously approved the motion. Committee Members Hanson and Salvaggio further reviewed the Home Investment Partnerships (HOME) and Emergency Shelter Grant (ESG) 2004-05 Annual Spending Plans proposed by staff. The Emergency Shelter Grant program included funds for the Bakersfield Rescue Mission, Bethany Homeless Shelter, and Alliance Against Family Violence. Committee Member Hanson made a motion to approve the spending plans, public notice, and forward to the City Council as part of the FY 2004-05 Action Plan approved above. The Committee unanimously approved the motion (Committee Chair Maggard absent for this item). AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING . Thursday, February 12, 2004 Page - 5 - B. Staff report and Committee recommendation regarding Audit Reports for fiscal .year ending June 30, 2003 · Reportable Conditions Report- Management Letter · Required Communication with Audit Committee - SAS 61 · Comprehensive Annual Financial Report (CAFR) · Independent Auditors Report - Single Audit Report - Schedule of Federal Expenditures for the City of Bakersfield · Independent Auditors Report - Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan · Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) of the City of Bakersfield Committee Member Hanson made a motion to defer this item. The Committee unanimously approved the motion (Committee Chair Maggard absent for this item). C. Discussion and Committee approval of 2004 Budget and Finance Committee meeting schedule Committee Member Salvaggio made a motion to defer this item. The Committee unanimously approved the motion (Committee Chair Maggard absent for this item). 5. COMMITTEE COMMENTS 6. ADJOURNMENT The meeting adjourned at 5:27 p.m. Attendance: City Manager Alan Tandy; Assistant City Manager John W. Stinson; City Attorney Ginny Gennaro; Assistant City Manager Alan Christensen; Finance Director Gregory Klimko; Assistant to the City Manager Darnell Haynes; Economic Development Director Donna Kunz; Public Works Director Raul Rojas; Community Development Coordinator George Gonzales; Fire Chief Ron Fraze; Public Works Operations Manager Brad Underwood; Public Works Street Superintendent Luis Peralez; Deputy City Attorney Allen Shaw; Economic/Community Development Business Manager Rhonda Barnhard; Assistant Recreation and Parks Director Allen Abe; Deputy Fire Chief Gary Hutton; Police Captain Tim Taylor; Superintendent of Recreation Sally Ihmels; Sergeant Joe Grubbs, Police Department/PAL; and Assistant Finance Director Nelson Smith Others: Randy Coates, Housing Authority-Kern Affordable Housing; Louis Gil, Bakersfield Homeless Center; Mildred Moore; and Dennis Wallace Habitat for Humanity cc: Honorable Mayor and City Council S:\Damell\04Budget and Finance~bf04feb12summary