1995 SPE MIN MAR 30 - Laserfiche WebLink

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Moved by Councilmember Sandoval, seconded by Councilmember Cook, to approve staff's recommendations. Councilmember Sanders stated that some of the revenues that were explored previously are not in this report, and asked if those revenues are no longer needed and therefore, will not have further consideration. Councilmember Sanders said other revenues could assist in the long term cure, instead of short-range goals such as have been presented tonight. City Manager Martinez said what is being sought is the long-term fix. Staff will continue to seek all potential revenues and will return to the Council May 1, 1995, with the utility tax or other options. Mr. Martinez stated the revenues being proposed tonight will impact the City for FY 1994-95. Mr. Martinez said in looking at long term, there is a need to establish a 3% General Fund reserve account, repayment of all General Fund loans to the enterprise accounts, elimination of the furloughs in FY 1995-96 and establishment of a maintenance account of $500,000. Councilmember Sanders asked about the power cost adjustments and asked if this was considered in the utility increase. Electric Utility Director Clarke responded that the proposal is a combination of a power cost adjustment and a base rate increase and that the revenue would go to cover the shortfall being experienced this year; part of this shortfall was to have been covered from the Bond Sale. Councilmember Beltran said the funds that the Electric Utility had in the PAC, would have been sufficient to cover any electric utility shortfall; however, the PAC funds have been loaned to the City and now the increase in the PAC is necessary. Mayor Fulp said with regard to the PAC, the Council in 1994, approved a base rate increase of 3.5% effective July 1, 1994 and part two of that approval was an additional 3.5% increase effective July 1, 1995. Mayor Fulp asked if what is being requested is that the effective date of the part two increase be moved from July 1, 1995, to April 1995. Electric Utility Director Clarke responded "yes". Mayor Fulp said this action will help the Electric Utility recover from the loans it has made to the General Fund. Councilmember Sanders stated that staff has been asked to cut and to take cuts themselves and asked the maker of the motion to add a reduction of 10% in the Council Salaries for FY 1994-95 as well as FY 1995-96. Councilmember Sandoval stated that Councilmember Hutton had some interesting ideas that he presented two or three meetings ago and that he would like to look at the ideas and take that matter up separately upon Councilmember Hutton's return. Mayor Fulp said that perhaps that could be considered at the first meeting in May. F M&R " � 199S