CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
Wednesday, May 27, 2009
B. Consideration of a Resolution finding a severe fiscal hardship will exist if additional City property taxes are seized and additional unfunded mandates are adopted by the State of California.
An estimated $395,000 based on 8% of city property tax revenues could be “borrowed” by State of California per 2004 law to assist close State's FY 2009/10 deficit.
V. Orders of Council
A. Study session and public hearing to review/adopt Fiscal Years 2009/10 – 2011/12 Triennial Budget.
City Administrator Rich Guillen presented Proposed Revenue Enhancements and Items not included in Fiscal Year 2009/2010 Draft Budget, as follows:
Proposed Revenue Enhancements:
• Paid Parking Program
• Construction Truck Impact Fee
• Property Assessment (Public Safety Services, i.e. Ambulance, Fire, Police)
City Council consensus to further explore all three proposed revenue enhancements. Interestingly, during deliberation about paid parking, the concept from a previous parking study of creating an island of paid parking is a sea of unpaid parking potentially creating an incentive for tourists to venture to shops and restaurants in areas without paid parking, such as the Barnyard, Crossroads and other locations throughout the Monterey Peninsula, was not addressed by City Council Members or the City Administrator.
Items not included in Fiscal Year 2009/2010 Draft Budget:
• Trolley Service: $54,000
• Chamber of Commerce (Guide to Carmel): $7,000
• Library Services Funding (1/3 of 80,000; 1/3 from Library Foundation & 1/3 from Board of Trustees): $26,700
• SCC (10% reduction of FY 2008/09 City subsidy): $71,300
• MCCVB: $18,280
City Council consensus to add $26,700 for Library Services Funding and $38,300 for SCC per original Three-Year Contract of a FY City subsidy of $680,000.
• At the Budget Meeting, City Administrator Rich Guillen stated that the revenue enhancements were the “cost of doing business.” This “cost of doing business” mentality is imitative and reveals an indifference to the qualities which make Carmel-by-the-Sea a unique and desirable destination for visitors and place to live for residents. Moreover, the adoption of “cost of doing business” policies could adversely impact Carmel-by-the-Sea’s community character; a community character which distinguishes Carmel-by-the-Sea from other destination cities.
• City Administrator Rich Guillen’s advocacy of imposing additional fees and taxes on tourists and residents is unwise and imprudent during an economic downturn. To wit, a better budget policy would be to scrutinize the allocation of limited taxpayer dollars in a city with one the highest per capita expenditure levels of any California city.
NOTE: The City Council will next consider the 2009/2010 budget at a Special Meeting scheduled for Tuesday, June 9, at 4:30 P.M.
Special City Council Meeting, May 27, 2007 @ 5:30 P.M.