1995 ADJ MIN JAN 21 - Laserfiche WebLink

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Mayor Fulp defended that the Finance Director is a responsible, qualified certified public accountant. Mr. Frank Gonzales said the report identifies a $6.7 million deficit. To whom, does the City owe the money? Mayor Fulp responded that the questions would be answered later today. City Manager Martinez said budget is a forecast, which includes revenues. He explained that the City forecasts on an annual basis. He stated that Council directed him to show them the fiscal picture on a monthly basis. The revenues for Rancho Mediterrania are one-time revenues which may come in later. City Manager Martinez said that on December 19, 1994, there was a gap between revenues and expenditures in the sum of $500,000 and Council had directed him to identify the amount of overspending. He agreed that the City does not budget on a monthly basis. Councilmember Sandoval declared the report unfair as it misrepresents the truth. It should be based on the best possible information. He said that the City is using a lot of information which some people have used to fuel "fires." It is unfair to use tactics to skew the information. Former Mayor Gonzales asked who was owed the $6.7 million and Director Chamberlain informed that the $6.7 million was borrowed from the Electric Fund. Mr. Gonzales emphasized that the City owned the Electric Department and in reality the City is using its own money to balance the budget. The sum of $6.7 million was borrowed from the Electric Utility and he suggested the General Fund can pay it at its leisure. He pointed out the City is not going to an outside source. Director Chamberlain responded that the General Fund and Electric Fund were two separate entities and in essence the revenue received from Electric was revenue received from the ratepayers. Finally, Mr. Gonzales stressed that the City's employees have been very supportive of the City in working without salary increases. He found it unfair to burden the employees by the suggested layoffs. Mrs. Cynthia Ramirez wondered why the public was being limited to five minutes. Why is the public limited and not allowed to hear the information sought? Councilmember Bennett stated that everyone has the right to state an opinion. Councilmember Sanders offered that many councils limited the public speakers to three minutes. To afford everyone an opportunity to speak, he urged that there be a 5 -minute limit. Mrs. Ramirez said it was not fair that today, which was set aside for this particular purpose, a 5 -minute limit be set. Councilmember Sandoval said he was impressed with scheduling this meeting on a Saturday to allow all those that wanted to speak to be heard --all day, if necessary. Councilmember Cook said that in view of comments from the audience, Council should reconsider its motion to limit the speakers. City Attorney Biggs advised that Council has 4 JAN 21 1995