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2 3 0 AGENDA (continued) ACTION TAKEN (continued) <br /> CONSENT CALENDAR (continued) CONSENT CALENDAR (continued) <br /> 14. Approval of warrants nos. 53,851 through Approved <br /> 54,083; and authorization to make usual <br /> and necessary payment of bills through <br /> June 2, 1980 <br /> 15. Council requests to attend meetings, if any None <br /> Item 13. DISCUSSION (see above for title of ordinance) <br /> wool <br /> In response to question of Councilman Britschgi about the placement of the <br /> proposed ordinance on the Consent Calendar, City Manager Fales stated that the <br /> ordinance is appropriately placed since it represents documentation required roil <br /> to implement previously made Council decision in the matter. Mr. Fales ad- <br /> vised that at the 1980-81 Budget Study Session (February 23, 1980) Council had <br /> a presentation by Finance Director Ference and considered in detail at that <br /> public meeting his report on "Effects of AB 8 Deflator Clause and Proposition 4 <br /> on the City Budget" (February 21, 1980). <br /> Discussion followed and Mr. Fales, Mr. Ference and City Attorney Schricker <br /> commented and replied to questions concerning the fact that present reserves <br /> are larger than anticipated because of high interest rates, increased sales <br /> tax revenue and increased employee turnover; that recently when City reserves <br /> had reached the dangerously low amount of $200,000, it was Council's decision <br /> to give first priority to building an adequate reserve to meet emergencies <br /> and other unexpected and often expensive situations which might arise in a <br /> city of this size; an explanation of the figures in the second paragraph of <br /> page two of the Finance Director's report; the need for funds to operate the <br /> City between July 1 and the effective date of the 1980-81 Budget; the fact <br /> that Council will be able to consider the 1980-81 Budget knowing what is <br /> recommended can be implemented regardless of the fate of Proposition 9 or delay <br /> and failure to act of the State legislature; the fact that a recession could <br /> "trigger" implementation of the "deflator clause" with the resultant reduction <br /> of funds to cities and the need for the City to be prepared for that circumstance; <br /> and the fact that it is prudent to build a significant reserve before much needed <br /> capital improvement projects can be contemplated. <br /> As a point of personal privilege, Mr. Fales stated that in the nine years since <br /> he has been City Manager, there has never been any attempt merely to build a <br /> reserve for its own sake, observing that occasionally the reserve has been so <br /> low it has been difficult to know how the City would pay for some decisions, <br /> and objecting to any comparison with the State of California with regard to <br /> handling of reserves. onis <br /> Title read. M/S: Chandler/Leipzig. ORDINANCElaapprove edlfor <br /> orlfirst reading <br /> rste r..r <br /> WRITTEN COMMUNICATIONS - Communication signed by 14 residents of 400 block, <br /> ti <br /> Myrtle Street, requesting installation of street light. <br /> City Manager Fales reported that trees on Myrtle Street are being trimmed and <br /> consideration is being given to relocation of present street lights as well as <br /> other possible means of responding to the subject communication. <br /> Vice Mayor Stangel advised that an oral request for improved street lighting in <br /> { the area of 1118 Clinton Street was also received and possibly could be investi- <br /> gated at the same time. <br /> M/S: Bury/Stangel to refer to staff for report and recommendation the matter of <br /> { street lighting in the 400 block of Myrtle Street and the 1100 block of Clinton <br /> Street. Carried unanimously by voice vote. (MINUTE ORDER NO. 80-78) <br /> Reg.Mtg. <br /> 5/19/80 <br /> Page 5 <br /> orms <br /> raw <br />