February 6, 2007
CLOSED SESSION – Council
approved a payment of $121,313.59 related to a trip and fall
incident.
REVIEW OF MID-YEAR 2006/07 BUDGET
STATUS, FIVE-YEAR FINANCIAL FORECAST, BUDGET AND COMMUNITY
PRIORITIES FOR FY 2007/08 BUDGET – Council started the
evening by combining the mid-year FY 2006/07 budget and the
discussion related to the FY 2007/08 budget. Staff
presented a status update of the fiscal year 2006/07 budget
as of December 31, 2006. Current projections showed
available funds of $1.3 million, resulting from the
close-out of the FY 2005/06 budget, less previous Council
actions and proposed mid-year expenditure actions. The
largest increase in revenue was reflected in an increase of
$1.8 million in Transient Occupancy Tax. Staff recommended
that appropriation of the $1.3 million be deferred until
development of the FY 2007/08 Budget.
The five-year forecast highlighted
mixed economic indicators on a national level, but a more
positive local outlook, given the diverse tax base.
Positives included: low unemployment, higher GDP, lower
inflation and stock market growth. Negative indicators
include: housing market slow down, inflation concerns, an
inverted interest rate yield curve (short-term rates higher
than long-term rates). With all factors considered, slow but
steady economic growth is currently expected. Highlights of
the five year forecast include: labor costs account for 71%
of the budget. Revenues are expected to grow from $249.9
million to between $283.1 million and $291.4 million
during the five-year period. Under all current assumptions,
the city has a structural deficit at some point in FY
2009/10 or FY 2010/11. The solid waste, water and wastewater
enterprise funds (funds where revenues are generated to
cover expenditures) also show a structural deficit
developing during the five-year period. Longer-term goals
include looking at expanding financial trends and
forecasting and re-examining the Capital Improvement
Program.
Council heard public comment related
to establishing community and budget priorities for FY
2007/08. Topics included, but were not limited to: support
for schools, arts and neighborhood improvements. Council
discussed areas of community priorities including continued
emphasis on customer service in the city; homelessness;
mobility (traffic parking, LUCE); cultural, sustainability,
Youth Violence; education; capital projects; Active
living/recreation. Council identified three areas of special
focus for next fiscal year: homelessness, addressing youth
violence and completion of the Land Use and Circulation
Element (LUCE).
APPROVAL OF PROPOSED FY 2007-2010
COMMUNITY DEVELOPMENT GRANT PROGRAM FUNDING RATIONALE –
Staff presented the results of its Community Voices 2006
identification of emerging and critical human services needs
and funding priorities. Council adopted funding rationale
for operating and capital and one-time funding grants that
included ensuring effective services through coordinated and
collaborative delivery of services; improving community
awareness of, and access to, community programs;
incorporating best practices that result in clear and
measurable outcomes; incorporating regional strategies into
planning efforts; implementing a phased-in approach to
address key findings of the community assessment; leveraging
non-city funding with the addition of an annual review and
the addition of "housing first." Council also adopted
minimum funding eligibility requirements with the addition
of a stipulation that funds can not be used for religious
purposes.
FUNDING GUIDELINES AND SELECTION
CRITERIA FOR FY 2007/08 CULTURAL/ART ORGANIZATIONAL SUPPORT
GRANTS – Council adopted funding guidelines and
selection criteria for one-year grants for FY 2007/08. The
Creative Capital community cultural plan will
recommend possible future changes to this program and is
currently anticipated to be presented to Council later this
month.
2ND AND 4TH STREET PEDESTRIAN
STREETSCAPE IMPROVEMENT PROJECT – Council directed staff
to take steps necessary to use CDBG funds for this project.
OTHER MATTERS – Council
continued discussions related to agenda management and the
use of Council contingency funds to the next meeting.
ADJOURNMENT AND NEXT MEETING -
The meeting was adjourned at 11:10 p.m. in memory of Dr.
Don Clelland, a principal at several Santa Monica schools
and in memory Ed Maggiore, a pediatric dentist and long-time
UCLA faculty member. The
next meeting of the Santa Monica City Council is scheduled
for Tuesday, February 13, 2007 beginning at 5:45 p.m. in the
wheelchair-accessible Council Chamber at City Hall. Council meetings are aired live on
CityTV Channel 16 and on the
Netcast on the city's website and, for regularly scheduled
meetings from 8 p.m. to midnight on
KCRW 89.9 FM.
CITY COUNCIL NETCAST!
Watch and listen to Santa Monica City Council meetings on the Web!
MEETING WRAP-UP ARCHIVE
