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MINUTES OF THE UKIAH CITY COUNCIL
Regular Adjourned Meeting - February 26, 1997
A regular adjourned meeting of the Ukiah City Council, the agenda for which was legally
noticed and posted, began at 7:34 a.m. in the Civic Center Council Chambers, 300
Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers
were present: Councilmembers Chavez, Kelly, and Vice Mayor Mastin. Councilmember
Ashiku joined the meeting at 7:36 a.m. ABSENT: Mayor Malone. Staff present: Finance
Director Elton, Assistant City Manager Harris, City Manager Horsley, and City Clerk
Henderson.
2. Special Order of Business
2a. Budget Orientation Session
Finance Director Elton presented the Budget Orientation Session to the Council. Director
Elton referred to the budget as a spending plan for the City which is a set of priorities as
well as a service delivery plan. He addressed the budget document and described the
parts that make up the whole of the document, including the City Manager's message, the
actual budget Resolution, the fund summary, the General Fund section, and debt
summary. The budget reflects a past history of revenues and expenses as well as
projections for future accomplishments.
City Manager Horsley mentioned staff is preparing a history of the changes in City
revenues, caused by State redistribution to the School District and the County of
Mendocino.
Mr. Elton outlined the budget preparation process from the worksheet stage through
Council approval. Director Elton and Assistant City Manager Harris are the "budget team"
responsible for overseeing budget preparation. This year each department head will be
responsible for the final sheets from his or her department. After refinement of each
department budget by the Director of Finance and the Assistant City Manager, the City
Manager will review budget requests with each department, head. Then a summary budget
will be prepared with City Manager recommendations and presented to the Council in a
3-day work session which also will include the Ukiah Redevelopment Agency budget
review and a joint session with the Ukiah Valley Sanitation District in order to review and
approve its budget as well.
Councilmember Kelly asked if budgets were always prepared from the previous year's
expenditures or do department heads, in conjunction with line staff, analyze more efficient
means of operating in order to lower expenses, basically starting with no assumptions as
to how operations would be carried out.
City Manager Horsley replied each department head does meet with personnel within his
or her staff to ascertain where improvements may be made. This is why the budget
process begins in January now, instead of in March, as was the previous practice. She
also addressed Councilmember Kelly's inquiry as to the possibility of having a
consolidated dispa[ch service in Mendocino County. The City Manager noted discussions
by affected groups are presently being held.
Mr, Elton explained the allocation process of applying general governmental costs, such
as administrative and Civic Center costs, to each department. He mentioned sales tax is
a primary source of General Fund revenue. However, fees for the services of the
Enterprise Funds make up the greatest revenue source for the City. The Electric
Department is the largest generator of revenue with electric rates being based on costs
of service.
Regular Adjourned Meeting - February 26, 1997
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Mayor Malone repoded he attended a Nodhern California Railroad Authority meeting in
Fortuna and the first weekend train excursions to Mendocino County will begin on March
15, 1997. He also briefly attended a Ukiah Chamber of Commerce meeting.
11. CITY MANAGER/DEPARTMENT HEAD REPORTS
City Manager Horsley repoded on how well the City's Public Safety Department responded
to last Friday's (February 14, 1997) events: the fire at Autumn Leaves retirement
community, a mile-long hazardous materials spill,' and a serious auto accident near the
Airport. Fire personnel injured in the Autumn Leaves fire are back at work now.
RECESSED: 9:20 P.M.
RECONVENED: 9:38 P.M.
12. CLOSED SESSION
Mayor Malone announced the Closed Session agenda as follows:
G.C. § 54956.9 -Conference with Legal Counsel Regarding Existing Litigation:
a. Ukiah v. First Merchant et al, San Mateo Superior Court No. 398401
b. Ashoff et al. v. Ukiah et al., United States District Court,
Case No. C-96-1302 VRW
c. Ashoff et al. v. Ukiah et al.. Mendocino County Superior Court,
Case No. 74102
The Council adjourned to Closed Session at 9:39 p.m.
The Council reconvened from Closed Session at 10:30 p.m. No action was taken.
13. ADJOURNMENT
The meeting was adjourned at 10:30 p.m. to February 26, 1997, 7:30 a.m., for the Budget
Orientation Session.
Colleen B. Henderson, City Clerk
Regular Meeting - February 19, 1997
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Vice Mayor Mastin inquired what impact the County of Mendocino's March ballot measure
asking for a raise in the Transit Occupancy Tax would have on City of Ukiah revenues.
Ms. Horsley replied it would have no impact since the City's Transit Occupancy Tax is set
at 8 percent.
Mr. Elton mentioned the computer software used to prepare the budget is Word Perfect
and Excel. He addressed the fund balances, which can also be referred to as reserves or
the difference between the assets and the liabilities.' The fund balances serve the purpose
of being a buffer for timing differences between revenues received and revenues
expended.
Ms. Horsley commented there are a number of unforeseen events each year that require
expenditures not anticipated during budget preparation. As this occurs, other allocated
expenditures are foregone in order to keep the budget in line and avoid overspending.
She emphasized the budget is an estimate, a best guess, of what revenues and
expenditures for the City will be in any one given year's time.
Councilmember Kelly asked the process for cash flow analysis.
Mr. Elton replied large, one-time expenses by departments are tracked and those
expenditures are timed with revenue projections, while personnel costs remain constant.
City Manager Horsley added the City's Investment Oversight Committee is working on
cash flow analysis so that the City will have a steady flow of revenues.
Mr. Elton spoke briefly to the Enterprise Funds. These funds operate as would a private
sector business, revenues cover expenses.
Councilmember Kelly requested each department head to include in his or her budget
report how department staff was included in budget decisions for that, particular
department.
Ms. Horsley agreed department heads would be able.to prepare such a report, but it
should be written separately from each budget report. She further commented budget
information would be included in the orientation package, which is now being prepared to
be made available to Council and the public, in Conference Room 2 at the Civic Center.
3. ADJOURNMENT
MIS Kelly/Ashiku to adjourn the meeting was carried by a voice vote of all AYE.
The meeting was adjourned at 8:31 a.m. to March 5, 1997 at 5:30 p.m. for a presentation
by Michael McDonald, Executive Director of the Northern California Power Agency.
~'Colleen B. Henderson, City Clerk
Regular Adjourned Meeting - February 26, 1997
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