Folsom City Council Regular Meeting

Any final action to report out of closed session? >> no final action. Thank you. With that we will adjourn and open the special meeting, regular meeting tuesday, April 25 tuesday, April 25, 2017. The clerk please call the role. >> [Roll call]. >> with that everyone please rise and join in the pledge of allegiance. >>> I pledge allegianceto the flag of the united states of america, and to the republic for which it stands,one nation under God, indivisible, with liberty and justice for all. >> any agenda updates from our city clerk? >> you have two updates for tonight's agenda. Item 7I, those revisions have been provided to council members and are available to the public. And at the mayor's request we are going to move business from the floor before scheduled presentation. >> thank you. With that, the next item. >> the next item is business from the floor. One request to speak. >> this was an effort, you can step over here. Our budget presentation can get into some interesting lengthy detail. To spare anyone who needed to address us this evening we are saving some time. Good evening. >> thank you very much. I'm sure every presentation is stirring. My name is john and I am part of a group that is convinced the road is not properly maintained, the sewer line in that nature area serves approximately 20 homes. I want to thank the council members who have met with us individually to discuss the alternatives collier times appreciated. Last night we held our community meeting and for those who did not attend or could not attend, I would like to encourage you to go to the facebook page to the link of the video to our meeting. Our recommendation has four components. Number 1, plea necessary repairs and report to restore the part to a natural condition. Number 2, hire a contractor, flush the line annually. Three install wireless flow monitors to provide early warnings of blockages. And number 4, clear blockages using a combination of high pressure flushing and industry standard debris baskets which would remove the requirement to drive up to every manhole. I sent you a video demonstrating how the baskets work earlier today. We had another confirmation from an expert that our approach is a very viable approach, we met with and talk to chris stanley, south lake tahoe public utilities and waste management and he said they are opposed to cutting down any trees in order to get access to a sewer manhole and are conscious of maintaining a natural environment. they would rather drag a high- powered water hose 1300 feet and use the basket rather than building a road to accommodate. We have a request for a financial comparison. During last night's community meeting I shared estimated costs from the city during the August from the city during the August 2015 presentation by marcus. I shared the estimated cost received from our meeting with everett and marcus this year. I shared the estimated cost of the current city full some budget. Projection costs very widely. We would like an objective financial comparison between the staffs build a road plan in our recommendation. Would like to be sure conference of analysis of the total cost including construction of a permanent bridge and the cost to extend the road to both end of the sewer line, premedication and annual road maintenance etc. In conclusion, we believe our alternative is comparable to staff recommendation in its ability to ensure the sewer line is properly sewer -- serviced and maintained. Ours is superior in the areas of blockages early warning and clearing, total expense to the city and living up to the city motto of being distinctive by nature. I'm not building an unnecessary road that based on the eagle creek sewer maintenance records the past 14 years would be used only an average of 2.4 times per year. Thank you. >> any other request to speak? >> no further requests. >> next item. >> your next item is your scheduled presentation. This is presentation of the city manager's fy 2017-18 proposed operating and capital budgets for the city of folsom, the successor agency, the folsom public financing authority and the folsom ranch public financing authority. >> thank you for that. Mr. City manager. >> good evening. I am pleased to present our budget for the fiscal year 2017/2018. This is what the finance director and I have been categorizing as a blue-collar budget. Nothing fancy but it gets the job done and done well. I will give you a few highlights of the presentation you will see in detail shortly. Our budget is balanced at approximately $200 million all funds. The largest components are $82 million in the general fund and $40 million spread across our surprises, transit, solid waste, waste water and water. The general fund expenditures are up nearly 6% year-over- year. And so our budget continues to grow as a community continues to grow. Are assessed valuation is up to $13 billion. That is truly one of the ways we measure the value of the city. It's not simply a $200 million budget but in support of eight $13 billion enterprise for the community of folsom. The budget provides for fiscal sustainability. We project at the end of this year air fund balance will be at 16.5% or $12.7 million. 16.5% of general fund expenditures. The 2018 talent is expected to be 16.5% or $13.4 million and this is in excess of the councils required 15% of expenditures and reserves. We are also making other investments to ensure fiscal stability. $900,000 of new contributions to a retiree health obligations $1.2 million in new contributions. And no new debt. We remain on very sound fiscal footing as we move forward. In order to do that have been seeking efficiencies year-over- year and one of which we talked about before, we've gone through extensive reviews of all of our operations and all of our labor contracts to provide solutions the build capacity for us to do new and better things in the future. This year's reorganizations include public works, where we will save $225,000 as we reorganize some of the operations and realign the labor force to my current requirements. We're also making significant investments in the community $2 million in public safety equipment and renovations. $700,000 in public safety staffing which includes three firefighters and two dispatchers. $1 million in park renovations covering the aquatic center, and parks. $7 million in new parks and trail facilities that includes the economy family park and johnny cash trail. Approximately $3 million in street and sidewalk investments. $4.7 million in utility improvements and renovations. $500,000 in information technology improvements so we can work smarter not harder. There are certainly a lot of details in this budget and staff believes it's solidly prepared based upon the principles we reviewed back in very. That said, there are reasons to be cautious as expenditure pressures particularly in wages and retirement continue to mount. Retail preferences shift from bricks and mortar stores to online purchases. Before I let jim % a detail recommendation, I want to take a minute to personally thank my team for their work. They have done a good job year-over-year. This year is no exception. I would also like to express my special gratitude for a lane anderson, assistant manager. And might cfo jim francis and his staff for the long weekends and evenings they have put into pulling this together for your benefit. With that, Mr. Francis? The floor is yours. >> Mr. Maher and members of the council, I will be presenting fiscal year 17 and fiscal year 18 operating capital budget. I should go right to the end and say questions because the manager has done a great job of summarizing. i will add a few details. Just for your curiosity. >> thank you for that. >> before I get going, I want to remind everyone that the budget is based on a number of assumptions. The most important being what the economy is going to be like one year from now. It is based primarily on continuing like it is. It's not going to be expensive we don't believe. We think it will still be a growing economy even at the slower level. That is the basic underlying assumption. We went over that in February, that is what underlies the budget presentation. As we get going I want to remind everyone that there are seven different funds will be talking about. And that you will eventually be proving. As the city manager said, $201 million of total expenditure. We will be talking mainly about the general fund which is $81 million and the enterprise fund just $40 million. The other funds are included in that conversation. We will start with the general fund. The overall summary, the city manager pointed out this year we are projecting that we will end air fund balance at $12.7 million or 16.5% of expenditures . Again, it's above your 15% policy limit. And that has been intentional. For the proposed budget, we are going to be at $81 million. That is about eight about 83.2% -- 3.2% increase. We expect to have a surplus which would keep us right at the 16.5% fund balance. Although the number of course would be higher at $13.45 million. To look at some of the revenue projections closely, see you can see how we came up with those, this is a summary. Property tax, we're looking at 4% increase. Again, that $3.2 million of increase in revenue. Two thirds of that will come from your property tax and your sales tax dollars. The other one third will come from all the other revenue sources we have. You will see between property tax and sales back -- sales tax cut we will talk about those in detail, you have a little over $2 million increase. Dot in charge up for services and governmental, roughly in line with the cost of living increases. Transfers in are up slightly more because we are using some money from the equipment surplus funds. To supplement some purchases. That is up slightly and all others are flat. When we get into looking at it overall, the pattern for general taxes which is the top line, it's right at 60.8%. That has been a continuing increase in the liability on property tax and sales tax since the recession. It has come up from about 54% up to 60%. If you look at other funds and the use of other funds coming in, that is actually decreased from 25% to about 19. And our charges for services actually remain flat. From 18.2% to 18% of the budget. We had a rise for a while and then it came down a little bit. All others are fairly flat. This is a trend that will probably continue. As long as the economy is good, as you remember during the recession, for taxes we lost around $9 million in revenue. It has been a steady growth back from the number. When we look at our projections property tax we start with our assessed value and we're looking at having $13 billion in assessed value, a little over 5.5% increase. That comes primarily from new home sales, which is at $46 million and that has been steady the last few years. Preowned sales of homes and $87 million. Our increase has been a declining number, down to $221 million and that number will continue to decline. We're almost out of residential property being on prop eight category. Most of the property left is commercial property. >> by way of explanation on that, is that the re-capture -- of the -- back up to where the values were but not above that and it just goes to proposition 13? >> that is right. >> proposition 13 increases in the assessors increases on the cost of living formula. For all the other properties. Of course that has been growing each year. Exemptions have been fairly flat. We get to that $13 billion. once we have the $13 billion of course the property taxes is 1% of that. Of that 1% I like to point out that we get about 19 point -- 19.2% of the 1%. What that means, and most of you know this, is that on a $500,000 home, your 1% property tax is $5000. So 19.2% we actually get is $960. Not all that money comes to the city, only $960 of that 5000 in that example. -- $5000 in that example. That has been a fairly constant number. That gives us $25 million in property tax. We have the tax sharing county on the auto mall. Which subtracts $2.2 million. And then we have unsecured property taxes and the rda, that brings us to the $24.2 million. That is up 5.74% that is roughly what we had. On sales tax, we have simplified that to point of sale. And the state county pool, the point-of-sale number has gone up about 3.1% which seems low but the pool number is up about 6.7%. That represents your internet sales. Primarily. And that is where the increase has been. We are at the 3.6% for sales tax, that is a little conservative. But as you can see from the last few years, our sales tax has volatility to it compared to property tax. Two years ago we were flat in sales tax. then we went up considerably and then we had a more normal year. We are cautious on sales tax. Just because you don't want to get caught short. If that happens. To break this down a little, and see some of the impact, you can see the general retail has been, has had the least growth over the five years. It has been about 2%, a little over 2%. Transportation has been about 3%. Food services about 4% increase. And then you get to the internet , and that is about 11% increase per year. Over the five years. From $2.3 million. So you can see most of the impact of that has been on the general retail model. That is where we start to see, and we have seen in the newspapers, the big stores closing. We have had that here with sports authority and office depot is going through some reorganization. We will probably continue to see that. The good news on this is on the business-to-business sales, this change is all associated or pretty much associated with the move. By us adding that through our economic development efforts in bringing them into the city, that is an -- that has added considerably to her sales tax. It remains such an important activity. Again, we are at a 3.6%. When we look at charges for service and our licenses and permits, the largest ones, parks and rec certainly because most of the activity runs off of those, and they have a fairly substantial increase, most of that is related to the fact that we have the barn opening up this year and it will attract more people. And also there is a proposal for increased in the entrance fees. That is built into the budget. Ambulance fees are about $3 million per year. They will fluctuate up and down. Around $3 million per year in the has been steady. We expect building permits to be steady. We do expect plan check to go up. That will be related to south of 50 development coming in and thus charging for those plan check fees. Planning and engineering fees are going to be flat. Public works fees, it looks like it's going down but I point out that we don't budget for emergency operations for when firefighters want to fight fires. We don't put any in their is we don't know if that's going to be every year. This is always a lower number, we get that reimbursement. Then it's supplementing your budget. To take a closer look at parks and rec, you can see all of the major areas that we have been looking at. There'll increasing in terms of charges. That is primarily based on use. And utilization. the zoo again been the biggest increase because of the barn and that fee proposal. When we look at that over time, as we measure it, back in fiscal year 10 -- fiscal year 2010, that is when counsel gave direction for us to try and have less general tax support of the parks and rec room. And we started an effort to do that. You will see in sports we were at 41% of the cost of sports programs. They are now it 14 projected for this year. The aquatic center was at 30%. It is now a 19. Community and cultural services was at 43% and now we are 23%. Does it was at 62% and now is that 48%. When you tally up the differences, that is a difference of about $1,000,000.3. If we were still at these rates this year. That is what allows us to provide more than we would have otherwise. On the appropriations, we do that by department. We will take a look at it in both cases. The budget principles we have had been doing this is the city manager has said, we want to maintain fiscal sustainability. Be transparent to the public and accountable for results that you expect. And to be responsive to the committee with your guidance. The priorities in this budget have been to train strengthen, to improve and invest in our technology. And to address some continuing deferred maintenance issues and to invest in the future. We will look at each of those areas and what the budget does for that. First off, if I look at appropriations by major categories, salaries, benefits, outlay and debt service, salaries are $1.1 million or 3.4%. We will look again at the next slide. That is a little deceiving. We will look at what causes that increase. Benefits are our biggest area of increase, 7.7%. $1.8 million. This is where we address the areas with technology and that is $1.6 million increase. Outlay is down $250,000. That is because we had some major expenses last year and we don't have those this year. That service is up but again, that is a little misleading. The debt service is down a little but we did add the loan for the johnny cash trail. That is causing that. That loan is about $400,000 per year. A little more than that. You can see our debt service actually went down slightly. When we talk about projections you will see it go down even more. >> if we take the salary level in detail out the salaries, first of all you will see permanent salaries were up 2.7%. Or $800,000. Again there is a story. That is really a combination of step increases, it was about $1.3 million. And there's also some new positions in our budget. that is about $.5 million. But we had the retirement incentive, the incentive with the replacement of lower salaries. Because of that we subtracted about $1 million. That brings us down to $800,000. Temporary wages are a. That is a function of not more hours but a minimum wage increase. The next five years. We went up to $10.50 an $11 next January. We will go one dollar per year until we hit $15. That is certainly going to impact us in future years and especially parks and recreation. Overtime is really just a reflection of salary increases. Our annual leave is down about five years ago, it was 7% that we would put aside and we reduced that to 5%. We went down to 3% few years ago. Now we have moved it down to 2.5%. We will probably go a little lower and see how the year ends with that. Allowances are essentially flat. That is how you get your.4% salary increase. -- 3.4% salary increase. If you go to the staffing part, I mentioned there was new staffing. There are seven new positions in the general fund. 1.2, a net of 1.2 positions in the enterprise funds for a total of 8.2. The positions that are in there, some of which the fleet manager mentioned, there are three firefighters, that will be used to hopefully reduce overtime and when station 39 might open they can be transferred out to that facility. There are two office assistants , one public works and one in community development. Those departments have only one person for administrative support. This will be used to enhance that. And allow some professional staff to attend to their regular duties. And also eliminate overtime. The two dispatchers and police will be used to have three on- duty during peak periods. So they can handle the volume of calls and keep up the good response time. To transit drivers are to make sure we can fill all of the routes. There is an offset of a permanent part-time driver to that. There is a gis analyst which we used to have that position in the budget before the recession. And we think it is time to bring it back. For not only our analysis but a better analysis in all areas, but also as we begin to develop south of 50, that has to be recorded on a gis maps, the capability to program all of that. The inventory clerk will be in fleet. We currently have mechanics doing inventory. This will help of not only keeping overtime down but having mechanics do mechanical work in clerks doing inventory. We have a maintenance worker which will help with maintenance around the courtyard. We have environmental permit which goes with the courtyard and reporting and the processes that need to go with that. On the other side, these are position eliminations. Fire mechanic. Associate engineer. Permit part-time transit driver. If you look at our position over time, we were at 586, decanoate. 140 positions less. That is about 25% of our workforce. Quite honestly, this is why we are in a sustainable mode. And some other cities are. Other cities during the recession induced the workforce and hired them back. We reduced our workforce and we kept it down by about 140 positions. And so if we were to have 140 more positions, it would mean $20 million. Quite frankly I don't know where I would find that. >> I have a question. Do know how many by department we lost in the recession? And how many have we gained back? >> I don't know them off the top but I can get them. >> unfortunately some took a bigger hit than others. I want to see, these were high before it hit, I just want to see the proportion, are we adding back in some level. >> okay. If we move to the benefits and the 7.7% or $1.8 million in benefits, and look at the story with that, as you heard from us several times, $1.1 million in contribution is the biggest element to benefits and 11.4%. Fica is simply a matter of salaries and cost increases for that. Health costs have been low that is due to the fact that we have had -- am sorry. -- the health program, we have had alternative programs before that. In terms of high deductible plans. And we had fairly good success in negotiating with providers. Retiree health is up 13%. That is simply a reflection of the incentive plan. We had 34 people go out, we had about 52 in total for the year and most of those went on the retiree health. All others are down slightly. That is the story with our benefits. To go into more detail, back in 2008 our contribution, these are the % of salary, for safety personnel it was 23.2%. For miscellaneous for sale was 15.7%. If you go up to this year, it's 46.9% for safety and 30.5% for miscellaneous. In that period of time they have doubled the rates. Over that tenure period the rates of double. I wish I had better news but that is probably going to continue. >> another question. Back in the 2008/2009, the employees shared and now we don't do that? >> in 2008 there was no employee contribution at that time. Those added in 2010. I believe. That just meant we had a higher number than normal. If I go on to the onm in debt service and capital costs, getting into what we have done in this budget based on this. The first one to strengthen our court services. We have $.5 million, we have the two dispatchers. Minor police reorganization. Small improvement to the k9 program. $30,000 for the homeless camp abatement program. We are replacing all of the self-contained reading apparatus , and fire without replacement will be in sync with all the other entities, the same kind of breathing apparatus in the region. We're adding three firefighters, replacing the personal protection gear. That which is old and out of date. And we're buying a new ambulance. We're also increasing library materials budget by $18,000 up to $150,000. We are completing the zoo barn. A little over $200,000, primarily the fence around it. There are a number of park improvements, mainly preground -- playground. There is a public works reorganization. $225,000. We have a backhoe replacement and you're going to supplement our electric fleet more. And add a roadside spare. In terms of technology, our investment in technology, we have computers and software. We're going to invest in it. Government accounting software you would like to invest in. it will help us with our annual reports. The police digital evidence server, storage software that can be used by all departments. The document scanning at $100,000 is in community development plan. It will save storage costs. We have a disaster recovery for computer infrastructure. We want to upgrade our network fiber. We want to hardwire the zoo so they have better utilization of of technology. We are bringing gis. On the deferred maintenance area, we're going to service several fire station driveways. Continue fire station maintenance. We are doing a contract through preventative maintenance. $52,000. Going to replace the station hvac. The library we're going to repair the roof and windows which -- $50,000 in 88 improvements. -- ada improvements. $50,000 in neighborhood drainage improvements. And we have increased trail maintenance by $10,000 up to $60,000. To invest in the future, we have had planned increases of the general fund balance of $700,000. There is no new debt this budget. We have general plan implementation of $100,000 and have provided for $125,000. That includes core contributions. We have increased the retiree trust fund contribution by $50,000. and that is the fund we use for the stabilization of retiree health costs. And the folsom ranch entitlement implementation of $400,000 which is primarily the annexation for the courtyard and that is developer funded. But that is in the budget. Again, if you see the total appropriation by department, those are laid out. Roughly half of the $4.6 million is to the public safety and the other half is to our other services. The public works decreased because they had several purchases of major capital items and so that is reflected by the reorganization. If we look at over time, and we have done this with concern to the general tax support for each of the major areas of the public safety, community development and public works and parks and rec, you can see it has remained fairly flat. Over the five years. Government has gone from 8.1 8.12 7.9. Down a little. Public safety is 63, is down 60.6. Community development and public works 4.2% to 7.9%. A lot of that is the maintenance effort. Parks and rec and culture which the library, 14.6% to 15.9%. And the non-departmental went from 9.4% down to 7.7%. It goes back even farther than that. It has been a fairly even distribution among those categories. Again, the fund balance is up to 16.5 this year. $12.7 million. We intend to keep it at that. 16.5%, this is where we were, before the recession. And down to 4 million other lowest point. On the enterprise funds, the story with water is mainly in the revenue side. You can see it starting to go up somewhat. It's good to point out that we have lost over $2 million of revenue. During the drought. It was over $14 million. And you are not going to get all of that back way frankly. There were improvements made that were permit, people put whatever drought resistant materials down. And did other things in terms of low water use. You not going to get all the revenue back. That is something you're going to have to look at going forward . The cost, certainly we have to look at it lake everyone else it's affected you're going to want about three or 4 million per year and capital projects. And we have tried to maintain a pay-as-you-go capital plan. That is going to have to be looked at. You're working capital is going to start to dwindle as you can see. It's happening a little. But we think there's going to be larger chunk. We would encourage you to look at not only the expenses but also on the revenue side. I know they are going to be doing great study. That will be an important document. On the wastewater side, we have had small increases in the revenue. Again, the operational side is fine. Capital projects, I think the program is still in good shape. We are on a pay-as-you-go. We have low debt in this program. We are in good stead with the wastewater program. Solid waste, this looks fairly flat. We expected to go up somewhat. Is new development takes place. And it is covering not only expenses but the capture -- capital expenditures built-in. I think it is on fairly good ground going forward. Transit is really self- supporting. Revenue doesn't always match every year but it makes up for the next your. It really breaks even as we go forward. There isn't anything to be concerned about with the transit fund. >> I think it's important for people to understand the transit fund is basically funded by monday the comes in from outside the city. >> that is correct. Most of that revenue is not fees and charges. >> on the capital improvement plan, a quick overview. These are some of the major projects in this coming year some of which have been started. Some of which will be new. Fire station 39, the final design and permitting is in the capital budget. And the funds are set aside, we have the funds and are building that whatever you give the okay. The economy park will be completed next fiscal year. As will the johnny cash trail. There are a number of upgrades to the water treatment plan -- plant. And greenback medicine improvements are going to take place. There are a couple of pump station improvement programs. They will be going on the utility. Green valley road widening will be completed as well as iron point road crossing. The folsom sports complex will have the outdoor courts, the covering for the outdoor courts, and the zoo barnyard will be completed, the remaining parts of that. And the empire ranch interchange design will start. >> two quick questions. What are we doing at the railroad crossing? >> go ahead. >> currently the railroad crossing as you travel up iron point, we're going to go in and work with the rail guys to put a cross slope on the tracks and run it out a little ways to soften the transition up the hill. >> that is a good idea. The major problem is heating on iron point. And for markets, rather than come down, can you send me an email and let me to we are doing at the water plant? Thanks. >> where is the money them in from for the johnny cash trail? >> that is a loan. And that is a mentioned would show that debt service going. We pay it back in $406,000 per year for five years. >> grants? >> it's alone, not grant. >> are we paying the loan grant -- the loan back next >> that is general fund money. >> will there be any sorts of forecasting for the funding for johnny cash trail? Is a being paid for completely separately? >> if you look at the different funding sources, the largest are impact fees. And the only thing I would say there is that we have relied on impact fees for a long time. But the next five years those are going to sit south of 50. Of the impact fees are not going to be available as much. That will be an issue we have to deal with. As you can see all the other different kinds of fees and funds we used to fund our capital improvement projects. The good news is on the gas tax side, ft one did pass we are expected to get about $400,000 additional in the coming year, 2018, and about $1 million the following year from that. In looking at the budget forecasts, we think we can see five major expenses in the next five years. Certainly wages is one. It going to have wage increases and we don't have any more scheduled incentive programs. You're going to have the impact of that. As we spoke before, the minimum wage is going to end at $15 per hour. We will have continued rate increases percentagewise in over $1 million per year. Are active in retiree health costs, healthcare costs have the potential to go up quicker than other costs. And there is always the state legislation doing things to us that don't fit us. Financially. We have put that in there. This is what I really should've done, is giving you a blank page. I do have an idea. I will share it with you. This looks back five years. The first part will look back five years. This is on the revenue side. You can see taxes were up about 7.3. That is high because we are coming out of the recession. And building it up. You have about 7.3% increase. Your charges and fees, cost of living, maybe a little more for the five-year period. Other funds, a little less than the cost of living. And you had about 4.9, increase in revenue over the five years. On the expense side in the last five years, you again had 4.9% in expenses. The interesting part is, on wages, it only averaged about .7% because in those five years we had wage freezes and were not giving:, it was only in the last year that we have started doing that again. Have very little wage increase over the last five years. Benefits were going up. And healthcare was going up. You were it 10% increase per year and benefits. Oh and then that -- on them is where we were trying to bring back some program from the recession. 7.9%. Our debt was relatively flat. But our big investment was in the capital side. We tried to start buying vehicles and equipment in the last five years. That is reflected in that. When you look at the next five years and I'll start with expenditures, you're still going to be looking at 45% increases. But it's going to change. You're going to have the wage impact, you're going to have step increases, you're not going to have necessarily the benefit of retirement to offset that. Your benefit increases our contributions mainly which are going to go up $2.2 million per year. You're going to have fewer opportunities to do program enhancements. Because of that. Your debt will go down considerably because the geo debt on this complex will go away. So that will go down in a is $1.7 million. That will go down but you're still not going to have program enhancements. If the others are true, not going to have that much to build the capital stock. And then if I look at revenue and put my curmudgeon hat on, you are looking at probably 3.9, and actually 3.9-5 is arranged in revenue. You're going to have general taxes be property tax in sales tax, they will continue to go up, that will be the main source of revenue in the general fund. Charges and fees are going to be cost of living increases other funds are not going to be there. I don't believe you're going to see a lot of new funding. You're not going to have other kinds of funds that we have used before. You're not going to have that. You're going to be around up to five, and when you put that together with, again to reemphasize the contribution, we're going up 1 million or more every year. And that is what's taking the bulk of the expense. If you look at your increasing maybe $3.4 million in revenue, these are just the increases you're going to go from $10 million to $18.6 million in six years. That is a hard fact to face. That is why a lot of other things are not looking too well. There are a number of cities that are having dire conversations about that. We have to be in a good position but it still has an impact on this. When we look at that going forward, and this is 12 until now, blue line is the revenue line. Rain is sixpence line. We build up that surplus. The proposed budget is flat going forward the revenue is this blue line at the low-end and purple at the top and. 5%. The green and red are the expenditure. This is about 4.5%. It depends on where you numbers fall. That could easily bump up to 5%. These next few years you're going to bounce around. That is the challenge in front of us. Again, it's a workable challenge. Many other places have much more pictures than that. But it still is going to take them management to get through that. The cautions are, the budget is sustainable. If the economy continues to grow. You are going to have limited revenue options. That will be dependent on benefit costs. That is something we will be looking at. Sustainability depends on managing staffing costs. We've done that in the past, one quarter -- 140 positions we don't have. There will be limited options for growth and program developed. Impact fees are not going to grow and probably will decrease. These are all things we have to caution about. The budget you have in front of you is certainly balanced, and sustainable, we're going to grow with the fund balance. We are continuing to make strides in maintenance and do program enhancements. Your enterprise funds are in good shape. But you need to monitor them. With that I will stop being a curmudgeon. >> we always appreciate the conservative approach, as served as well. and again, you have done this for a number of years. We all agree it is a clear and concise way to look at the high notes of exactly what we have in front of us. As we always share there's a lot more detail in that will be available to anyone who chooses to dig through it on our website. >> it should be there tomorrow. Before I get into any comments, any additional questions or comments for jim? >> congratulations to you and your staff. I know you had your sleeping bags in there. >> it was so good I would like to hear it again. >> I think it was televised. >> seriously, you do an outstanding job. It's nice to be able to feel strong -- comfortable and pick up any document and know exactly where everything is going in the city. You hit a home run again presented it that way to a residence. >> before we get to any questions or comments appear, scheduling, when Mrs. Come back before us? >> the first -- when does this come back before us? >> potential to adopt on May 9. >> very good. >> have one thing, I've talked to the city manager, and it's commendable the amount of money we are putting in, it's remarkable where we went down to and backup to. And I think it's a good idea to keep putting in, but I have a request I want council to consider in the next couple of weeks. I don't think the city manager agrees with me but I understand his position and hope you understand my position. It's an item that came up recently were we have requested a certain to group to provide $35,000 on a park. It's a legitimate cost. It's half the cost of the total expenditure. I would like us to consider, $35,000 gift for any youth group from this town, I am well aware of what that constitutes, it's pretty hard. I would like this council, if you're putting $600,000 into the reserve, we can find $35,000 to take that off the group. If we can't do that then let's work out a system that we can do it over a number of years. It's hard to go to any youth group, we have tremendous groups weather sports or scouts or church groups, they are all good. That is what constitutes the city being so good. These kids are bad. Other cities have bat kids because they don't have the services. Considering -- consider $35,000 out of the reserve fund this year. >> can explain what you are talking about? >> there is a requirement on livermore park, because it's a small group of 200 kids, maybe down to 170 because vista high school is now reducing a lacrosse team and that takes away. There is a requirement for safety and liability to put a net across carter road to prevent the balls, in the crossed the ball is very hard. It can travel a long way. The kids throw it they are not accurate sometimes. We have one case that we have a liability where the ball went through a window. One of our very strong adversaries of our park. It could fit any house but I hit the house. It's going to be paid by lacrosse. But in order to stop that and prevent liability, while lacrosse is the primary one because of the equipment, soccer balls go out but they don't travel that far. There is netting that needs to go up and hopefully prevent that liability and safety of someone getting hurt as they play. I think it's a reasonable thing, with this council with the money coming back, if you go back and look at the self sustainment with the parks department, I could speak to I spent my life in it, we charge for user fees for every kid the place every sport for the park and rec's department. Every sport. You play five sports you pay five times $17. That is why there is a lot of money, that is where it comes from. Nine dollars per kid. It goes right back into the maintenance. These groups are trying to do right. But when you're talking about $35,000, that is too much at one time. You have to give them time. Several of our big organizations, they might have a reserved. But when you don't have too many kids you don't have that reserve. I know you say you're trying to be fair, we don't normally go in this town, that is a credit to this town, we don't go by the size of the participation of the sport. We go by the sport. Any sport should be allowed to play in our town. And that is to the credit. That is why we have such a great park in wrecks sports program. And a credit to the people who run it. The scouts, I say the same thing. All am asking, I would like the five of us to give it consideration. I am not knocking the city manager, he has a position. I know where it's coming from. Ayes deep into the kids program in this town to know the impact of $35,000. I think this council and city can take care of it. >> my only question was who are we talking about. >> lacrosse. >> any comments or questions? >> great job and thank you. Am excited to see the investments in public safety and the two dispatchers >> thank you. >> great job. I've been going through this and I will contact the department heads to get additional details that have you have to listen to my questions about public works and utilities and community development. >> I will just and by saying as I always do, I appreciate the balance of expenditures inconsistencies. I guess one suggestion, I also appreciate the we're going to conduct a rate study, we have not risen rates for a long time thanks to a lot of great work in those departments. It doesn't appear we're going to need to touch any of those except possibly water. I don't think any are interested in letting that shrink to point where we get desperate on a rating increased. I appreciate you getting that to our utility commission in getting us something to consider. Lastly, I would just ask the city manager, maybe the sheldon park renovations could be pushed over to lacrosse. I'm just getting. >> if I win the lottery and take care of myself. >> we have some capital improvement budgetary items the do a lot of park renovation for those of you that don't know, sheldon park is earned after councilmember ernie sheldon. >> it is? >> anyway, -- >> we have a policy of naming things after dead people. Just to take on to your comment, if you could take a look marcus, and I don't know when we will start applying water service, but I think that is something we need to start looking at. How that will affect the cost at the water plant and the revenue generation from additional water services. that May balance out what at the moment looks like it's going to be a requirement increase. >> yes, we look forward to revisiting the detail at our next council meeting. And hopefully adopt. Thank you. >> one other point, when I saw him at an event over the weekend, I know jim's car was in the parking lot early saturday morning. I don't know if that meant jim was in the building or just left his car there to look like he was working. >> I wasn't the only one. >> yours was the only one I noticed. >> very good. With that, next item. >> the next item is your consent calendar. >> request, as announced by city clerk we have revised item I, anything else? >> h pull for comment. >> pull letter d for individual vote. >> have a comment on j and k and I would like to pull m. >> j, k, m. >> I will move letter a bc letter a bcfgil and m. >> those letters moved and seconded. >> [Roll call]. >> your first item isresolution no. 9902-a resolution authorizing the city manager to execute a lease assignment with patricia orellana for operation of the cafe site at the folsom public library, georgia murray building. >> I believe it was a request for a separate vote. moved and seconded. Please call the role, item 70. >> [Roll call]. >> next, the next item is item letter age. Resolution no. 9907-a resolution of the city of folsom approving a memorandum of understanding (Mou) Between the sacramento local agency formation commission (Lafco) And the city of folsom for the preparation of a joint environmental impact report for a sphere of influence amendment and annexation for a city corporation yard. >> that was me. I'm going to vote for this when I get done talking. Because it has to be done. I know that. But I've been under the wrong impression for quite some time that when we put the courtyard south it was not going to be a city, I have stated many times and everyone knows me know I believe this, I don't want to see the city go further south as white rock, I'm not against development, but I think the city is going for 125,000, I think it's more than adequate. We don't need to have the big populations that surround us. And therefore when I saw this I said wait a minute, but I have had two interpretations, why this has to be an accept them. But I don't accept anymore, in my mind approve any more developments with the purpose of adding people to this town. Here is not better. I just wanted to make that statement. >> thank you ernie sheldon. And probably some clarification. i don't know Mr. City manager if you want to touch on that. >> briefly. I'm happy to. The purpose of the incorporation , the details of which will be on your May 9 agenda, and I should explain why this is the cart before the horse, essentially they won't process any application until they have a cost sharing application. That is the first step. To the meat of the deal that property is outside urban services boundary. It is not available for us to provide services to or to provide water to, we would be the water service provider. We would not be able to expect regional sanitation to be able to provide sewer to that particular location. And being in the county, even if they were to provide immiscible services to that facility we would be having to work with the county general planning and zoning amendments, building permits in working through the county is a regulatory body. And that is a relatively clumsy thing for a city to do. And so with this simple annexation and purchase of this property, the deed restriction on the property to only use for municipal offices and a simple annexation to bring in the city and provide the opportunity for the region to provide sewer services -- sewer services. It is limited to 58 acres. It's eminent -- absolutely limited to municipal services. We don't see that as growth inducing. It is not and will not and forever won't be available for commercial development and will be restricted. >> the only comment I want to make on that subject is that there is, the conversation is on going back and forth and back and forth to three years about the land owners providing that property. I don't think it's a situation of the city purchasing. >> that is correct. >> I have personally stated from the get-go that I was not going to sit here and watch folsom place it's courtyard outside the city of folsom. In my opinion that would be like elk grove saying they want to put their courtyard in full some. In my mind, the city's yard has to be in the city limits. Putting it there was not part of the city of folsom. >> is to mayor, I should restate that. To affirm the city will be the owner of the property. We will transact the purchase of it funding provided for the transaction provided by the land owners south of 50. It is a known it expense to the city. This is a deal we negotiated the landowners under condition with them and acting -- annexing the property back in 2011. Have been working on protecting the only the sale but the entitlements thereof that would allow us to put the courtyard on this site. It internet itself -- it in itself does not require the full acreage. -- a portion of that area between where it will be cited and white rock road we'll be rights-of-way for the connector buffer lands and any number of things. We're looking at 30 some acres. It takes us 58 acres to get 30 acres of usable land. >> the only other comment to fill compared to disagree on is the city is looking to expand to 25,000 people. That is not true. We're only building 11,000 housing units. The average occupancy is 2.1. There's going to be a lot of smaller units. I don't see us ever getting to 125,000 people. >> but I will move item h. >> any other questions or comments? >> second. >> moved and seconded. Thank you for pulling that for discussion. With that please call role. >> [Roll call]. >> this is a question for you. We had at my insistence about 10 years ago we stopped adding the contingency into the contract amount. I don't know why we're doing that again. I don't want the contingency in the contract amount. It is the contract amount. In most instances any change orders over and above the contract amount within the city manager's authority to approve. >> not if the money is not appropriate it by the council. That is why we keep rolling back to this. We manage these contingencies very closely. I do approve them all in excess of $100,000 May come back and require -- >> can't the contract state the contract amount you have been given the authority by the council to spend additional money subject to city manager approval >> correct. That is a procedure. >> it's not worded that way in these items. >> the contract amount is the contract amount. The contingency is an additional appropriate amount. >> I will move both items but please look at the way they are worded. >> moved and seconded. Any other questions or comments? Please call the role. -- roll. >> [Roll call]. Resolution no. 9913-a resolution of the city of folsom renaming scott road in the folsom plan area to east bidwell street and appropriation of funds for new freeway signs. This was before us in the last council meeting. >> a 2-2 vote. Before entertaining a motion, -- >> I don't, I'm not in favor of changing scott road, I understand it's being done at the request, I don't think there should be confusion between the funeral home, and another church. I don't see there being confusion with one versus the other. I'm still unhappy that east bidwill used to be scott road, I think it's a necessary and the expenditure we have to make to caltrans is over the top. $50,000 is not a lot of money at its way more money than I think it should take to fix the freeway sign. I explained to the city manager I would like it to say east bidwill, formally scott road on the east coast I have seen that where it has a limited confusion. I'm not in support of it. >> any comments? >> admin agreement with the expenditure portion. -- I am in agreement. It's a public safety issue. But $50,000 to augment the sign seems excessive. >> have us -- I have a question, I'm going to support it, with my prior background, in emergency situations people aren't explicit. They will just say scott. I've been on that and for part of my career as a dispatcher. They are in a panicked state. The details of where the services need to go aren't usually very well thought out. Dispatch does a great job in trying to glean information and get the services where they need to go. Having said that, and as I am sitting and listening again, this isn't a situation being created by development, it's been there for a while. I agree with roger's comment, this is brought to us in the name of public safety. Public safety would bring and insist on this unless it's an issue. It's obviously a serious issue. I thought or comment is, is there a way to negotiate with caltrans, we have our own sign shop, I understand they have some standards. >> they are published online. We can read them. >> I'm not going there. You can enter a contract, I think we can do it for a lesser value. They have never demonstrated they have been the most pragmatic and spending their dollars. I'm going to support the resolution, I think it's a prudent thing to do. When I have fire and police telling me this is a problem, I can't ignore it. I hate to spend the money, I want to spend -- find a better way to spend the money. It's a shame we have a full some ranch drive because I would love to call it folsom ranch parkway. But we are switching apples for more apples. I'm going to support the resolution. I will move the item. >> I will second the item and thank you for jumping in. One last -- >> one last comment. This is not really a reason to support the resolution, but it dawned on me, from an economic developed standpoint this gives more clarity, because the economic corridor we designed our around east bidwill. The mall is on east bidwill. North or south, it doesn't matter. From the economic element standpoint, this will be easier and more beneficial to the city. >> to the item has been moved and seconded. We have heard loud and clear, let's keep the costs down. Maybe some of our scouts and eagles to do a project. >> I am sure they can fix the sign. I don't want to see them installing it. >> but I do like to think is always we can get clever and bring the cost down. With that, no other comment. Please call. >> [Roll call]. >> I don't disagree with you often than this when I do. >> negotiating with caltrans? >> I'm happy to do that. >> jumping right to city manager reports. >> thank you. Good evening. This coming saturday is trails day, arbor day, creek day and earth day. We can solve just about anybody's desire to get your community hours in. If you have any questions, you can go to the website. You can learn about the city's activities around earth day in creek week. We talked about water and water utility and conservation during periods of drought and periods of plenty. We have heard from the governor stating conservation is a way of life in california. That is a message we have been promoting for some time. We are offering a workshop on lush low water gardens thursday, May 4. Please do call. 630-8:30 pm. You can reserve your space. You can call or send an email. Me is bike month. -- the month of May is bike month. many opportunities to take bike trips around town. We often have a sponsored ride downtown with the mayor. You can find details. That would make this the fifth annual ride with the mayor. That would be on -- >> thursday, May 11. >> 8:30 am it rides to the great capital bike fest in front of the capitol building. >> does not conclude your comments? >> roger, anything to add? >> thank you for the light reading. >> steve? >> ernie? >> 5000 people at one time. The operation last two minutes when they say go. It was well done by staff. And the young kids that helped, the scouts and clubs from the schools and everyone, and the vendors, it worked out fine. Good weather. In between that whether we hit it right. Another kudo for the park and rec. I want to give kudos to the city manager to direct to someone we never pay attention to. I come in this building quite often the weekend to pick up mail. I don't always make it during the week. And this building sparkles. The people to keep this building clean, the contractors, I know it's their job, I want to ask the city manager to pass the kudos on to the people that keep the floors shining in the bathrooms clean. Because it's really a pleasure. during the day we take it for granted, but on the weekend it sparkles. I ask the city manager to thank them. >> thank you ernie. Gary? >> I think earth day was last saturday. I only say that because I was asked to attend a cleanup of noninvasive plants and a second project that escapes me at this moment. There was a huge presence of employees. Pg&e. Oddly their leader was the person who is the director of electric utilities. I find it amazing since they don't provide electric service in full some. They had quite a presence and a number of folks from intel as well as residents of the city of folsom. Probably 150 people. >> apologize for my environmental insensitivity. In defense of myself -- I do care about the environment. >> perhaps it was earth week. That's a great event and thanks to all the folks from pg&e and intel and residents. The zoo got some really good press on channel 10. There were high school students holding some really cool projects at the zoo. This is yet another reason if you have not been there lately you should visit. They built a puzzle and then there were quite a few jokes on channel 10 about why they were building puzzles. They built a new above grade den for the foxes so that hopefully they will be more visible. But that is being done by high school kids. That was pretty cool. I got the chance to help evaluate some of the gps projects it folsom high. The kids are doing some great work in that global program. If you haven't heard about it I encourage you to keep your eye on those folks. And, I think I spoke to the mayor about this, I was contacted by sacramento magazine, they are doing neighborhood issue, I think it's next month. And folsom is one of the neighborhoods they are focusing on. I got the folks at to the trust bridge last thursday evening and the folks from sacramento magazine were impressed of folsom I get the impression they are looking for more. I gave them a long list of things that can come and see and do in folsom. Keep your eyes open. There May be people you know. With that, please drive carefully. >> so, everything I want to touch upon has been touched upon. All I will do is close with a somber note, many in the community are aware that citrus heights, rancho cordova, each lost a councilmember. Melt turner in citrus heights and dan in rancho cordova. It's a sad day for the brotherhood of elected folks in the region. I know a lot of us know these folks because we sit on various regional committees and commissions. It was a blow to those two communities as well as the region. They were contributors in the region. With that and with the councils indulgence I will go ahead and adjourned the meeting in memory