HomeMy WebLinkAboutFC_2016-08-19_MinutesFinance Committee Meeting Notes
August 19, 2016
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City of Atascadero
FINANCE COMMITTEE
NOTES
Friday, August 19, 2016
11:00 a.m.
Atascadero City Hall – Conference Room 106
6500 Palma Avenue, Atascadero, California
CALL TO ORDER:
Chairperson Moreno called the meeting to order at 11:00 am.
Members Present: Council Member Kelley, Mayor Pro Tem Moreno, City Treasurer Gere
Sibbach, Administrative Services Director Jeri Rangel, City Manager Rachelle Rickard
Absent: None
Staff Present: Deputy City Clerk Lori Kudzma
PUBLIC COMMENT: None
City Treasurer Sibbach spoke regarding the weed abatement fee discussion that took place
during the City Council meeting. City Treasurer Sibbach suggested it might be appropriate
to have the Finance Committee review how the fee is calculated. City Manager Rickard
stated that City Council asked for the fee review to be brought back to Council at a future
meeting. Council Member Kelley suggested he and City Treasurer Sibbach meet and
discuss and bring back to the Finance Committee for review and then take forward to the
City Council with a recommendation.
BUSINESS:
1. Review Community Facility District Fees
Director Rangel gave the presentation (Exhibit A) and answered questions from the
Committee.
Director Rangel referred members to page 6 which is the summary from the aud ited
financial statements.
Council Member Kelley asked that it be noted that he did not receive the packet until
today. Chairperson Moreno stated she had received the electronic packet on Tuesday.
Finance Committee Meeting Notes
August 19, 2016
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City Manager Rickard confirmed that because of the size i t took some time to assemble
the paper packets but they were available for pickup Wednesday morning.
There was discussion about how much to transfer from the CFD to the general fund is
determined. Director Rangel and City Manager Rickard explained that 10 0% of the
staffing costs is not covered. An amount is budgeted from the CFD each year. The
amount to cover staffing is over $800,000 per year and the most recent amount
transferred was approximately $372,000. Development did not grow as quickly as
expected when the CFD was initially formed, however City Council chose to pre -fill the
additional positions using reserve funds.
Chairperson Moreno opened public comment:
Sheila Henley made comments, handed out documents (Exhibits B & C) and asked
questions of the committee. Ms. Henley would like to see the CFD fees reduced and a
sunset clause added.
Vicki Fogelman made comments and asked questions of the committee. Ms. Fogelman
asked that the committee not receive and file the report, but rather that the matter be set
for public hearing to lower the fee and include a sunset clause.
Kurt Stone made comments that if we don’t do something with new development coming
in, it lowers property values by diluting existing services to residents.
Roberta Fonzi stated as a realtor it makes it hard for people to qualify to buy homes.
Properties are getting harder to sell. Ms. Fonzi would like to see a sunset clause.
Charles Bourbeau stated this underscores why we need commercial development to
generate more sales tax. Mr. Bourbeau also stated there should be some limit of increase
each year.
Chairperson Moreno closed public comment.
City Manager Rickard and Director Rangel addressed the questions and comments
presented by the public.
Chairperson Moreno reminded all that the CFD is triggered when a request is made by a
developer for increased density above current zoning.
There was a discussion regarding fiscal neutrality.
City Manager Rickard and Director Rangel continued addressing the comments from the
public.
City Treasurer Sibbach stated Prop 13 has huge inequities and has forced City’s into
doing things like CFDs. Mr. Sibbach stated he does not see any way the City could afford
to do away with CFDs.
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August 19, 2016
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Council Member Kelley stated he would like to see some controls s et on the CFD and
suggested a workshop for discussion.
Chairperson Moreno suggested there is no perfect solution. The idea of a sunset would
erode services at some point.
City Treasurer Sibbach suggested there’s a possibility that an argument could be m ade
for the cost assessed to undeveloped property.
City Manager Rickard will speak with consultant about possible options. Director Rangel
reminded the committee that this would be additional scope that what the consultant
currently provides.
City Treasurer Sibbach stated since the committee is not able to agree on a
concrete recommendation for City Council
he moves to receive and file this report and thank staff for their time on this.
There was discussion between Council Member Kelley and Chairperson Moreno.
Chairperson Moreno seconded the motion to receive and file the report.
Motion passed 4:1 (Kelley opposed)
At 12:46 p.m. Council Member Kelley stated he has a meeting and needs to leave.
Chairperson Moreno asked Council Member Kelley if he had his questions regarding fire
answered when he spoke with the auditors. Council Member Kelley stated he spoke with
the auditors regarding another item and did not have his concerns addressed.
2. Review Aerial Ladder Truck Development Impact Fees
It was agreed that item 2 will need to be discussed when Council Member Kelley is
available to participate.
Chairperson Moreno adjourned the meeting at 12:50 p.m.
NOTES PREPARED BY:
_________________________________
Lori M. Kudzma, Deputy City Clerk