01/02/1980 Meeting - Laserfiche WebLink

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asked Ms. Stevenson, the Executive Director of the Housing Authority and Urban Renewal Agency for the County, how the State feels about payment in ~. lieu of taxes. Ms. Stevenson said thE~re would be no problems with any pilot programs. Mr. Lieuallen wondered if the 60 percent figure were satisfactory to the State, and Ms. Stevenson said that she did not know if that figure specifically was acceptable to the State. She said the agreement is between the City and the Housing Authority, and the State has not indicated any problems with such an agreement, as long as other expenses are paid first. ManagE~r cl arified that the attorneys have said there is no contract if it only states "after expenses are paid, money wi 11 be received". To ensure pa.yment, more specif ic terms have to be st ated . Mr. Delay moved, seconded by Ms. Smith, to approve in concept the contract amendment and allow the City Manager to negotiate the amendment. Manager noted that, of course, the school districts are the big sacrificers and will lose the most revenue in this case. Ms. Stevenson also mentioned that this is the first Section a project in the City. Others have been HUD low-rent projects. Councilor Lieuallen indicated that perhaps a clause in the agreement can specify that these payments be made to a fund that could be used for further development. He also indicated that more monies might be paid in the future when the project's residual reserve is above HUD requirements. Ms. Schue questioned whether the Housing Authority should be treated any differently than any other developer involved in Section 8 development. a:.. '~- Vote was taken on the motion, which carried unanimously. V. PROPOSED EXPEND !TURE REDEMPTION TO COMPENSATE FOR SHORTFALL IN GENERAL FUND BALANCE AT JUNE 30, 1979 Manager explained that the proposed expenditure reductions would allow the City to end the year in the black. Each department was asked to review its present budget and indicate how it might achieve a six-percent reduction in expenditures by year-encl. After reviewing the departmental proposals, revisions by the Manager's office will allow several departments to project less than a six-percent cutback, specifically Parks, Library, and Fire, while departments such as the Public Works Department are implementing more than a six-percent cutback. In developing these reductions staff attempted to follow the priority sheets developed at the first of the budget year. Certain capital projects and capital outlay items also have been suggested for dE~lay. In addition, a number of unfilled positions have been frozen, some administrative and others clerical. Manager mentioned that some of the rl:!ductions were delaying the purchase of two rapid attack vehicles in the Fire Department, and therefore proceeding with the master satellite program more slowly, closure of pools on a rotating basis, and Sunday closure of the Library. . 1/2/80--4