1994 MIN DEC 6 - Laserfiche WebLink

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City Manager Martinez said he and the Finance Director continue to keep a hand to the pulse, ready to report any changes. Now, there is an audit and the def icit is growing on a monthly basis. He agreed to report in December if directed; however, these figures would only include expenditures. In January of 1995, he and staff could provide a comprehensive mid -year review with full accounting. Motion by Councilmember Cook to accept the City Manager's proposal to have mid -year review in January of 1995. After discussion regarding the Audit Committee and its membership, there was expression of frustration because the Committee had not alerted Council of information received, on the audit for FY 93-94, regarding the deficit. City Manager Martinez stated that the 1994-95 budget expenditures are coming in the way they were budgeted as opposed to 60% of the revenue which is not on line. He stated that in January the City should have a clearer picture. Finance Director Chamberlain explained that with 40% of the f iscal year gone and 38% of the budget expended, expenditures are on line; however, on the revenue side only 23% of revenue has been received. Director Chamberlain assured that restricted monies are not go -mingled in the General Fund. Enterprise funds are unrestricted monies which are borrowed or used for those specific funds. There was discussion on any monies received from the sale of mobilehomes in Rancho Mediterrania. Attorney Brooks London provided brief status report on the sale process and he indicated that on July 1, it was projected that the City would receive $2.5 million in January of 1994. As a result of an assessment district, there is a shortfall. He said that 29 mobilehomes are presently in escrow. Economic Development Director Gabriel explained that proceeds received from the assessment district were restricted legally to redeem another bond. Attorney Tim Sabo stated that there were choices either to pay the City or noteholders. Decision was made to properly apply $2.4 Million to reduce the debt. Messrs. Hans Ver Der Touw, John Sigaty and Eugene Mc Means commented on the City's fiscal practices. Councilmember Sanders stated that it is clear that the Council must implement changes to the budget and it must act quickly. Councilmember Sanders made a motion that the City Manager and staff be directed to move forward within the next week. Discussion ensued regarding guidance for the City Manager as to possible restructuring and downsizing. city Manager Martinez informed that he has steadily been working with the departments over budget concerns. He promised to submit to City Council a plan based on the worst case scenario. Motion by Mayor Fulp, seconded by Councilmember Beltran, to direct the City Manager and Staff to reduce the budget deficit to zero. Unanimous vote. ADJOUR14MENT: DEC 6 1994