1978 ADJ MTG MIN JUN 13 - Laserfiche WebLink

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82 C O P Y June 13, 1978 The Honorable Mayor and Members of the City Council Civic Center Colton, California As per your direction, I have been analyzing and projecting for a revised Proposition 13 budget. As of this date there are a lot of unknowns concerning -the effects of Proposition 13. The unknown of how property taxes will be allocated and by whom, the unknown of State reimbursements, when and how much? etc. We have analyzed to the best of our ability with the information available a figure for a projected decrease -to the General Fund in the amount of approximately $400,000. Many al'terna'tives have been analyzed and basically, this would mean the cu't'ting of services and possible lay-offs of personnel; however, lay-offs of personnel would have a great impact on the vital services for -the Citizens of Colton. Should there have to be lay-offs of permanent employees, -the CETA program in the City would have to be affected prior -to any permanent employee lay-offs. The termination of -the CETA Program would greatly affect the vital services in -the police and fire departments. The other alternative is -to lease out or contract out some City services whereby employees would be either absorbed, transferred, or reclassified so that service levels can be maintained to the citizens. This would involve -the assumption that someone agrees to contract for operation and maintenance of -the Water Quality Control Plant. It would also assume somebody would agree -to lease -the Cemetery, but this alone will not make up for the difference of -the $400,000 loss in revenues. Our Enterprise Funds through effective management could bring return 'to -the General Fund. I would propose -that funds be charged against the Enterprise Funds and placed in the General Fund since this is -the first year it appears we are in -the black in an effort -to reduce prior years' deficits of our Enterprise Funds (with -the exception of -the Cemetery) . How will this affect the overall financial plan for -the City? It was proposed that all deficits could be eliminated within two years prior to Proposition 13; however, charging Enterprise Funds -to -the General Fund would necessitate a financial plan to redue deficits longer than -the proposed -two years. How long deficits would continue is another "unknown" connected with Proposition 13. The preliminary Budget submitted and rejected due to Proposition 13 was a very tight budget, it included reductions in Travel and Meetings; additional manpower; rolling stock, and even in vehicle allowances thereby departments using their own vehicles on City business. In conjunction with Proposition 13, any alternative -that is selected by the Council will involve no pay raises or cost -of -living increases for any City employees. I also would recommend no contribution as requested by -the Chamber of Commerce. Proposition 13 has provided -tax relief for property owners and relief for businesses in -the City of Colton; therefore, the Chamber of Commerce should rely for subventions from local businesses for their support. Proposition 13 is an indication by -the people -to limit government expenditures by reducing revenues. The Chamber of Commerce should be aware of this . At this point, I do not recommend a hiring freeze for existing positions; however, the Council whould constantly review -the CETA positions and gradually phase out this program from our vital services in the police and fire departments. Because of their interaction with permanent employees and existing services, I would recommend that CETA be phased out through attrition and in not renewing programs. The City and citizens tend to rely on added services allowed by these JUN 131978