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HomeMy WebLinkAboutM072678July 26, 1978. Budeet Session RECONVENED: The Board reconvened at 4:20 a.m. Present: Supervisors Lemke, Madigan, Moseley, Richter and Chairman Winston. Clif Nickelson, administrative officer; William R, Lawrence, county auditor by James Johansen, assistant auditor; and Clark Ao Nelson, county clerk by Cathy Pitts, deputy clerk, 7$-1386 BUDGET HEARING AND FINAL REVENUE SHARING HEARING The budget hearing was held as continuedo Chairman Winston stated that because of the complexity of the problems facing the county in light of proposition 13 the budget hearings will go on for a considerable length of time. EXECUTIVE SESSION: The Board recessed at 9:25 a.m. to hold an executive session regarding litigation, RECONVENE: The Board reconvened at 9:28 a.m. following an executive session regarding litigation. 78-1387 AUTHORIZE. COUNSEL TO WITHDRAW FROM LAWSUIT IN BUTTE COUNTY SUPERIOR COURT CASE N0. 22137. ESTATE OF ANDREWS On motion of 'Supervisor Lemke, seconded by Supervisor Richter and unanimously carried, Counsel was authorized to withdraw from the lawsuit in Butte County Superior Court Case No. 22137, Estate of Andrews. 78-1387 BUDGET HEARING AND FINAL REVENUE SHARING HEARING CONTINUED Clif Nickelson, administrative officer, made a preliminary report to the Board. In the proposed budget, although the budget was 2% higher than in previous year the requirement for property tax funds increased by 26%. There are no proposed funding of another year of anti-recession funds which is about $1,400,000 which would have been property tax relief. There was a large reduction in the amount of revenue sharing funds carried over. Most of the allocation of revenue sharing funds were spent. There were also reductions in revenue other than revenue sharing. There were annexations to the cities that took in commercial installations and there was a loss of sales tax. There was a very heavy annexation in Oroville involving almost all of the motels resulting in a loss of the bed tax. Things have changed because of funds coming in from the State for Welfare and Mental Health. Mr. Nickelson felt that the Board will need to reduce the property tax requirements in the budget by $2 million to $2.5 million in order to stay within Proposition 13 limitations. Jim Johansen, assistant auditor, stated that he hoped by early next week to have the final adjusted fund balances available. This will eliminate one of the unknowns. The other unknown is the county`s share of the $4 tax rate. The final payment of anti-recession funds was received last week in the amount of $153,000. This is the final payment under the anti-recession legislation. The federal government is reviewing continuation of the legislation. There is a question regarding the unsecured roll, This is a stateside question. The question is whether the $4 tax rate as implemented by proposition 13 is used or whether the prior year rate should apply. The Attorney General issued an opinion that the $4 tax rate should apply. Other attorneys and other counties feel the prior year rate should apply. This could make a significant difference. i Bill Lawrence, auditor, stated that the overall difference is about $400,000 for the county. The State Board of Equalization has informed him that they would file suit to enforce the $4 tax rate, Page 940 July 26, 1978 July 26, 1978 Corrections to be made to the proposed budget set out at this time. Corrections are as follows: Buildings & Grounds Maintenance, page 36. Account 31 - Maintenance - Major - Structa Add: $35,679. Total increase: $35,6790 General Insurance, page 68. Account 27 - Insurance - General. Add: $9,555. Auditor to make adjustment in budget to reflect $9,555 in Account 27 and decrease in Account F-loo Total increase: None. Purchasing & Civil Disaster, pane 180 Account 23 -'Communications. Add: $168. Total increase: $168, Elections, page 32. Account 23 - Communications. Add: $168. Total increase: $168. Public Works - Department of Transportation, General,,Administrati,on, page 186, Account 23 -.Communications. Add: $126. Account 41 -.Special Department Expense. Add: $72. Total increase: $198. Public_Works - Department of Transportation, Yards and Stores, page 194. Account 23 -,Communications. Add: .$168. Total increase: $168. 78-1388 BUDGETS DISCUSSED'. Agriculture Department. pace 160. Joe Bandy, agricultural commissioner, stated that there was a greater amount of revenue received in excess of $100,000, One-fifth of the weights and measures salary are reimbursed from the state level, There was a budget item within transportation and travel for two conferences which should be deleted. This is in the amount of $1,200, Personnel in the air pollution control area have been given additional responsibilities that extend beyond the district. Mr. Bandy asked that the Board give consideration to reclassification and salary .adjustment in his department priox to final approval of the budgeto The matter of personnel reclassifications 'E1as been referred to the Personnel Department for comment. Account 43 - Transportation & Travel. Delete: $1,200. Total decrease: $1,200, Budget left open. Page 95, July 26, 1978 July 26, 1978 Treasurer & Tax Collector. nape 20. Carl Morton,'treasure-tax collector, indicated that he was not in agreement with his budget. This is in the salary range of the employees. Mr, Morton made a supplemental request on account 35 - office expense. This would be to increase the total $500. This would be an increase from $27,000 to $27,500. This is to take care of the increase in the postal expenses for registered mail. Budget left open. No action taken on request. Fire Protection. Regular Service, Page 154, Bob Paulus, fire warden, indicated he was not in agreement with his budget. The primary disagreement deals with the proposed new station at Butte College, In view of the situation, he would agree with the Administrative Officer at this time. Mr, Paulus stated that he would agree to a reduction in account 36 - prof, & specialized services - state contract from $1,381,864 to $1,240,000. Isis office would be able to maintain at the existing level of last year. Mr. Nickelson stated the reduction that Mr. Paulus spoke of was listed in his memo. to the Board of July 24, 1978, subject: Proposition 13 budget adjustments. Budget left open. No action taken at this time. 78-1389 BUDGET HEARINGS OPEN TO PUBLIC .The budget hearing was open to the public at this time. Appearing: 1. Ramona Flynn, president',. Chico Friends of Butte County Library. Ms. Flynn stated that the Board had made a committment to the building of a new library in Chico. She asked that the Board consider the importance of the 7.ibrary and commit the money to build the library. Despite predictions, our society has made the library indispensable, A community library "reflects the character af:thercommunity. Ms. Flynn urged that a least $1,5 million of revenue sharing funds be committed. Chairman Winston gave a summary of the requests for revenue sharing< They are as follows: Meals on `'Wheels $26,000 Gridley Biggs Seniors Feather River Park and Recreation Northern California Health Services Agency Wheel Chair Access 8,000 for Chico Memorial Hall 2. Todd Radke, Chico Visitor and Convention Bureau. Mr. Radke was present to discuss the Economic Development program. The Board has held hearing on raising the bed tax from 5% to 6%. Mr. Radke suggested that the Board hold a hearing with the people interested in tourism promotion. This could be with the various Chambers of Commerce in the county. Mr. Radke stated that the intent of the Board when it adopted the bed tax was that although the money would not be earmarked, it was intended to be used for economic development. This is not simply providing a service. There will be a return of money to the county. Mx. Radke left information on his proposal for tourism with the Board. 3. Bob Paulus, fire warden, stated that he had just looked at the memo from the Administrative Office regarding budget adjustments in view of Proposition 13. He would like to have an opportunity to speak to the recommendation regarding his department. Page 96. July 26, 1978 July 26, 1978 4. Jim Lynch, Greater Chico Chamber of Commerce. Mr. Lynch stated that the Board will take under advisement the funding of the Economic Development Agency. The Board has all of the information they need to make a decision. Chairman Winstan advised that there is a recommendation from the Administrative Office on the budget adjustment list relative to the Economic Development Commission, Mr. Lynch stated that originally when the bed tax was started the money was to go for tourism. The matter of the Economic Development Commission will be discussed later in the meeting. 5. Shana Turner, Chico. Ms. Turner stated that she hoped the Board in doing away with the Economic Development Commission was taking care of the requirements fox OEDP for the grant. A three-year grant has been submitted. Mso Turner stated that she was with the Small Business Development Commission. She would like to keep informed of what is happening. 6. Prank Pastega, Do-It Leisure Corporation, Mr, Pastega presented a slide presentation regarding the corporation. The corporation has developed a specialized service for the handicapped, They are attempting to work with the existing organizations to?:help the handicapped. They attempt to integrate the handicapped population so they will be able to became independent clients of the individual districts. Mr, Pastega stated that his organization is asking for a $45,000 grant. There is a great deal of volunteer work done. The request will be considered. Do-It Leisure Corporation is on the list of possible recipients for revenue sharing funds. 7. Nora Wiley, Gridley. Ms. Wiley stated that she hoped that the libraries would stay open. RECESS: 10:30. a.m> REOONVENE: 10:7 a.m. 78-1390 PROPOSITION l3 - BUDGET ADJUSTMENTS Some of the budget adjustment would include adoption of fee schedules in various departments. Mr. Nickelson stated that one of the questions in requiring fees would be a legal question. This has to be researched. Supervisor Richter stated that he was supportive of charging for services rendered or provided other than critical areaso He supported the concept. Discussion of budget adjustments: 1. ~l_mination of legal research assistance vroQram to Superior Court This has been done. The savings would, be $12,252. Tentative approval. 2. Fed schedule prop_o_sed for Public Health, Environmental Health Unit This could reduce the dependency on the general fund by $115,602. The fees would be charged for restaurant inspection, swimming pool inspection and septic tank inspection. There are several fees that could be charged, There is a question of the legality of changing for these services. Tentative approval. 3. Fee schedule proposed for well-baby clinics, immunization clinics, venereal disease treatments, pregnancy counseling clinics and genetic counseii services Public Healtho This could reduce the dependency on the general fund by $30,000 annually. Page 97, July 26, 1978 July 26, 1978 b. Agricultural Commissioner, Office of Weights and Measures and Air Pollution Control District proposed fee schedule The fee schedule could develope an estimated revenue of $50,000. It was felt the Agricultural Gommissioner could he consulted regarding the proposed fee schedule.- There is a question of legality involved. 4. Increased fees for building and subdivision inspection: Proposed that funds be transferred to general fund to relieve property tax burden. Mr. Nickelson stated that there is a possibility that the inspection fees fox the building and subdivision units should be re-analysedo His office is proposing that the surplus funds be transferred to operate the general fund. There is no way of determining which section is paying for itself and which is not. The fee schedule should be adjusted so that the units are paying for themselves and the surplus could be put in the general fund. There is a surplus of $224,000. Tentative approval. 2b. Prioritization of fire stations within the county Mr. Paulus stated that he was not recommending that any fire stations be closed. There are no volunteers in Bangor. If the station were closed in Bangor there would be zero fire protection. Mr. Paulus would be opposed to closing of the Bangor Fire Station. The Gridley and Biggs fire stations could be reasonably supported by a volunteer department. The problem would be during the day. The level of fire protection would be greatly reduced, These engines could not be dispatched to another station for coverage if they were a volunteer unit. This would be a reduced level of service. He was not in favor of this. The level of responses are increasing 15 to 20% each year throughout the county. If these changes were made there would be a drastic reduction in the fire protection. Within the county there are 19 volunteer fire groups and 280 paid firemen. The volunteer fire groups would be affected by the proposal. At the present time there is a paid engineer who drives the engine to the fire with volunteer support at the fire. Mr. Nickelson questioned Nx. Paulus regarding Bangor fire station. 1s Bangor in the area shown as Division of Forestry responsibility? Mr. Paulus stated that it was. There is also ,. mutual aid with Xuba Gounty infrequently, No action taken. 10. Re-analysis of Schedule A contract by the Fire Department regarding salary and benefits for employees The State has put a freeze on salary increases. This would be the reduction to the county as a xesult of this freeze. Tentative approval< 5o Revenue classification of "fines forfeitures and penalties" Mr. Mickelson'stated that the code sections permit a percentage of fines and forfeitures through the courts to be placed into the general fund. These have always been placed into the road fund. The Board could take 50% of the revenue and put it into the general fund property adjustment. No action taken. 7. Work Referral Program deletion This would be a savings of $13,417. Tentative approvalo Page 98. July 26, 1978 July 26, 1978 8. Consolidation of Chico Marshal's~Office with Sheriff`s Department This has been accomplished. Tentative approval. 9. Consolidation of Recorder and Count Clerk's Office This has been accomplished. Tentative approval. 6. Fee schedule for Agricultural Commissioner, Office of Weights and Measures and Air Pollution Control District Joe Bandy stated that there is resentment in having to apply for a permit now. The people would probably object to paying the fee. The permit is required by law. Sutter County has taken action along these lines. Charging of fees would be difficult to do under existing staffo There would be additional paperwork involved. Discussion of centralizing billing process had at this time. The fees could be adjusted to compensate for the extra help. Tentative approval. 11. Pro osed closure of memorial halls. Possibility of turning the memorial hails over to veterans groups discussed. They could lease the halls from the county and charge for rental and operate the halls. 32. Treasurer-Tax Collector bud et reductions ro osed Mr. Morton stated that when he took office the collections had been pyramiding $150,000 every year. He developed the collection department, This is not only for unsecured taxes. This has built into something beneficial for the county. They have collected. His office has worked out programs with the court for collections of fees. When the department first started there was about $600,000 in uncollected fees from prior years. There is about $250,000 at the present time. The people know now that if they do not pay the county is going to go after them and get the money. The only way to do this is with an outside man. Nr. Morton stated that he could not argue with the other points. With the deletion of item 2, extra help, people could have to stand in line to pay their taxes. When you start backing up payment of taxes there is going to be an effect on revenue. The county could lose interest. No action taken. 11. Proposed closure_of memorial halls The county would maintain its capital investment. It is not unreasonable to ask the users to pay for the cleaning and sweeping. of the buildings. There would be elimination of the janitors and additional help along with utilities. Mr. Nickelson stated that the Board might want to sell the old Palermo Firehouse. Veterans organizations to be asked for input on this proposal. 13 Proposed elimination of__Development Commission aim bynch, Creater Chico Chamber of Commerce, stated that the program as set up was set up in conjunction with the cooperation of the Chambers of Commerce.. It appeaxed to be a good program at the time it was set up. The effectiveness is questionable. Part of the money went to the Chambers of Commerce for use to promote the. resources of the county. Mr. Zynch stated that he~~thought it was very important to remember where the money originally came from to fund the Commission. The intent was that the money would come from the bed tax. The money collected is not from any local person. There is a tremendous realization in the Chico area that perhaps one of the greatest economic programs that we have available is the visitor and convention trade. Butte County will never Page 99. July 26, 1978 ' July 26, 1978 develop into a high industrial area. This has the ability to bring in money. A good example of this is Aspen. The permanent population is 5;000 and 1$,000 to 25,000 transient papulation< The tourist and convention business is good and will not change the basic structure of the area. Oroville is the second tourist area in the 13 counfres. It is going to hurt the area if this is pat advertised, Money is investment. Todd Radke stated that he would like to give an example of the visitor trade from Ventura, The county has been funding the tourist promotion for about six years. In 1970 the bed tax income was $50,000 and in 1977-78 it was $250,000. There was no increase in the tax rate because of the six years of advertising. Last year $35,000 was put into advertising in the Ventura area. There was an increase in group sales of about $600,000 because of the $35,000 advertising program. This is an indication of what advertising can do. There would be very little in administrative funds. The advertising for Butte County could be done by the Chambers of Commerce. Supervisor Richter stated that there should be money set aside for contracting out the grant preparation to a private firm. The coordination should not be in Planning but should be in the Administrative Office. Shana Turner,. Sma11 Business Development Center, stated that the Center offers as a free service the. preparation of grants. The Center has grant people on staff that do the leg work and write the grants., Since March 3 the Center has affected over $5 million in this area. Tentative approval given to elimination of Development Commission. The other matter left open. The Board to discuss at a later date. 12. Pro osed closure of Veterans Service Officer as a de artment. It was felt that this should take place. The veterans can still contact the regional office regarding their problems. Tentative appraval. 14. Proposed reductions, in,,Board of Supervisors budget Supervisor Madigan stated that the memberships in the Cenral Valley Flood Control Association and Superior California Water Association should be retained, It was felt that the memberships in NACO and RCRC could be eliminated. It was also felt that the salary increase could be eliminatedo Discussion of elimination of travel had at this time. Supervisor Richter stated that he would be in favor of eliminating the travel if this were done on a county wide basis. Administrative Office to make a report on the travel costs. .,. Tentative approval of recommendation with change in memberships. Memberships for Central Valley Flood Control Association and Superior California Water Assiciation to be left in budget with a total of $650, The travel and extra help to be discussed at a later time. 19. Proposed use of available revenue sharing in fiscal year 1978-79, Clif Mickelson, administrative officer, stated that his office is proposing use of these funds for fixed asset acquisition and funding of the Sheriff's Department operations. If the revenue sharing monies are used to build libraries,. what about the need for revenue to operate the libraries. Mr, Mickelson stated that he thought it would be necessary to use revenue sharing funds to operated It will be difficult to build a library and explain to employees the fact that they will be Iayed off. Administrative Office to study the matter and report back. Page 100, July 26, 1978 July 26, 1978 25. ^Proposed budget for Library Mike Pyeatt~ deputy administrative officer, stated that according to Sb 154 and SB 12 the county free library system is considered on a less than county wide basis. It is considered a special district and should only be given a portion of the $4 tax rate. It is anticipated that about 52% of the income in 1977-78 can be expected which represents about a 48% cut in the budget. Jo Terry, librarian, stated that she was not in agreement with the 48% cut. A 20% cut for the library is going to be very devastating to the level of service now offered. The funding as requested in the preliminary budget is less than the price of one subscription or one hard cover book in the county. Mrs. Terry stated that one interpretation of the special taxing fund is that the library may be set aside as a taxing district. It is up to the jurisdiction. She did not feel the library employees were being treated fairly. Almost 800,000 volumes were circulated during the last fiscal year. The operating expenses are considerably less than in some of the other counties. Butte County operates an economical library service. Jim Johansen, assistant auditor, stated that for the purpose of the $125 million SB 154 funds the county free libraries, fire protection services and road districts shall be considered special districts. The Administrative Office to come back with report regarding a cutback of hours and service. This would be for a 20% cut or a cut of $100,000 to $200,0000 34. Proposed reduction in Personnel budgeto Jim Rackerby, personnel director, stated that the reduction in the training 'budget would have to be renegotiated because of the memorandum of understanding. This budget is only 25% property tax funded. No action taken. 31. Proposed reduction in Sheriff/Coroner enforcement division Mr. Nickelson stated that this included reconsideration of the coroner arrangements. Matter continued to receive information from Sheriff. RECESS: The Board recessed at 12:50 p.m. to reconvene on Thursday, July 27, 1978 at 9:30 a.m. to hold hearing on SB 154 funding for special districts and to continue budget hearings. July 27, 1978 RECONVENED: The Board reconvened at 9:30 a.m, Present: Supervisors Lemke, Madigan, Moseley, Richter and Chairman Winston. Glif Nickelson, administrative officer; Dan Blackstock, county counsel; William R. Lawrence, county auditor; and Clark A. Nelson, county clerk, by Cathy Pitts, deputy clerk. 78-1391 PUBLIC HIRING: SB 154 DISTRIBUTION OF $125 MILLION FOR SPECIAL DISTRICTS The public hearing on the SB 154 distribution of $125 million for special districts was held as advertised. Bill Lawrence, auditor, read his memo dated July 27, 1978. The memo shows the priority of the various special districts as to their dependence on ad valorem taxes for funding. The fire districts must be considered first. The $585,480 projected is not final.. The final determinatian will be done by April l0. The districts were segregated by their ability to raise fees by other means. The fire districts havetp be'first by law. The library Page 101, July 27, 1978