BREAKING HEADLINE NEWS!

Late Friday, 30 March 2007, the City Council of Carmel-by-the-Sea met for a Special Meeting at City Hall at 4:30 P.M.

City Administrator Rich Guillen presented a capital improvement triennial budget for fiscal years 2007/08 through 2009/10. Highlights included the following:

Capital Improvements (2007/08)
Additions:
Scout House (Design Work, Phase I): $200,000
Forest Theatre (Phase I): $500,000
Flanders Mansion (Maintenance per Municipal Code, Judge’s Ruling, Phase I): $500,000
Streets, Roads & Avenues (Phase I): $100,000
Subtotal: $1,300,000

Proposed Pre-existing:
4th Avenue Riparian Restoration $89,321
Parking lot-Sunset Center $50,000
Tennis Court Reconstruction $40,000
Repave Mission between 3rd & 4th $150,000
City Hall Carpeting (Admin area) $15,000
Subtotal $344,321

TOTAL: $1,644,321
Note: To be financed from the General Fund (1/4 of total equal to $411,080.25), Unreserved/Undesignated Fund Balance of $3,053,341 (1/2 of total equal to $822,160.50) and Capital Improvement Reserve Fund of $1,186,872 (1/4 of total equal to $411,080.25).

Note:
Estimated balance at June 30, 2006 $550,599
(Source: City Council, Agenda Item Summary, Prepared by Joyce Giuffre, February 7, 2006)
Transfer of the fiscal year 2005-06 General Fund surplus of $636,273 to the Capital Improvement Reserve Fund.
Total Capital Improvement Reserve Fund: $1,186,872

Ending Balances:
Capital Improvement Reserve Fund: $775,791.75
Unreserved/Undesignated Fund Balance: $2,231,180.50

Capital Improvements (2008/09)
Additions:
Scout House (Phase II ADA Compliance, Completion): $300,000
Forest Theatre (Phase II): $500,000
Flanders Mansion (Maintenance per Municipal Code, Phase II): $500,000
Streets, Roads & Avenues (Phase II): $200,000
Subtotal: $1,500,000

Proposed Pre-existing:
Parking lot-Del Mar $159,000
Underground Water Tank/Booster Pump $100,000
Pedestrian Path - S. Antonio bet 2nd & 4th $60,000
City Hall Carpeting (Bldg/Planning area) $25,000
Scout House ADA Upgrades (design work) $50,000 (Omit due to completion in FY 2007/08)
Subtotal $344,000

TOTAL: $1,844,000
Note: To be financed from the General Fund (1/4 of total equal to $461,000), Unreserved/Undesignated Fund Balance (1/2 of total equal to $922,000) and Capital Improvement Reserve Fund (1/4 of total equal to $461,000)

Ending Balances:
Capital Improvement Reserve Fund: $314,791.75
Unreserved/Undesignated Fund Balance: $1,309,180.50

Capital Improvements (2009/10)
Scout House (Annual Maintenance): $50,000
Forest Theatre (Phase III): $500,000
Flanders Mansion (Improvements, Phase III): $500,000
Streets, Roads & Avenues (Annual Maintenance): $100,000
Subtotal: $1,150,000

Note: To be financed from the General Fund (1/4 of total equal to $287,500), Unreserved/Undesignated Fund Balance (1/2 of total equal to $575,000)and Capital Improvement Reserve Fund (1/4 of total equal to $287,500).

Ending Balances:
Capital Improvement Reserve Fund: $27,291.75
Unreserved/Undesignated Fund Balance: $734,180.50

NOTES: Assuming no surpluses or deficits during the triennial period, transfer $472,718.25 from the Unreserved/Undesignated Fund to the Capital Improvement Reserve Fund for a total of $500,000; Unreserved/Undesignated Fund Balance of $234,180.50.
The City of Carmel-by-the-Sea would then have a total Fund Balance (Reserve Funds) of approximately $6,774,065.50 or 56% of an annual budget of $12 million; between 50% - 100% of annual revenues as recommended by the City’s Nicholson and Olson auditor.

COMMENTS:
With the City Council’s decision to decrease the city subsidy to Sunset Cultural Center, Inc., as promised three years ago, to $600,000 (FY 2007/08), $500,000 (FY 2008/09) and $400,000 (FY 2009/10), the City Administrator and City Council Members are confident that the savings will enable the city to more easily and equitably fund the needed capital improvements for neglected city cultural and historic assets for FY 2007/08 through FY 2009/10.

After 30 minutes of deliberations, the mayor and city council members were unanimous in their collective regret that they had in the past violated Ordinance No. 96 (see Reference below), the “heart and soul of Carmel-by-the-Sea,” and pledged to earn the public’s confidence and trust by funding for residential needs, including the renovation and ADA compliance of the Scout House; the renovation, rehabilitation and ADA compliance of the dilapidated Forest Theatre; the rehabilitation of the Flanders Mansion; and a commitment to annually fund the Scout House, the Forest Theatre and the Flanders Mansion for basic maintenance needs.

Reference:
THE CITY OF CARMEL-BY-THE-SEA is hereby determined to be primarily, a residential City wherein business and commerce have in the past, are now, and are proposed to be in the future subordinated to its residential character; and that said determination is made having in mind the history and the development of said city, its growth and the causes thereof; and also its geographical and topographical aspects, together with its near proximity to the cities of Pacific Grove and Monterey and the businesses, industries, trades, callings and professions in existence and permissible therein.
Adopted by Ordinance No. 96 passed on this 5th day of June 1929


APRIL FOOLS!