Budget hearings in the City of Clearlake triggered heated discussion among members of the council/board Thursday. Disagreements regarding the council”s travel budget and expenditures allocated through the Redevelopment Agency were items causing the most debate.
Ultimately, a $9.87 million budget for Fiscal Year 2008-09 was passed for the city while a $5.13 million budget was adopted for the Redevelopment Agency. Both budgets passed on a 4-1 vote count with Councilmember Roy Simons casting the dissenting vote. In an Oct. 24 Record-Bee article it was reported that a $7.45 million and a $5 million budget had been passed; however, those were budget totals prior to the calculation of added expenditures. The newsroom apologizes for the error.
Simons and City Administrator Dale Neiman have had a longstanding disagreement when it comes to interpreting redevelopment laws, which are dictated by the state. Simons has consistently opposed Neiman”s interpretations pertaining to what is defined as “new” construction and what should be considered as reconstruction and/or maintenance.
A problem Simons had with the budget concerned a total of $242,194 allocated through the RDA for payments related to a recent overlay project that resulted in six miles of new pavement on the city”s main thoroughfares. Simons” interpretation of the laws has led to his persistence in ascertaining that redevelopment funds cannot be used in the project.
According to Simons” interpretations, RDA funds cannot be used for maintenance, which is what he considered the project to have been. He also attests that RDA funds cannot be used for infrastructure improvements unless an assessment district is formed. It is Simons” understanding as he interprets the RDA laws, that the recent overlay project does not qualify for use of RDA funds because he says it was maintenance that city was already obligated to perform and no assessment district was formed as a result of the project.
According to Neiman, verbiage in the laws does allow for “new” construction. Furthermore, because the project consisted of a four-inch overlay he said it had qualified as “new” construction. Simons disagrees with Neiman”s definition of “new” and says that by dictionary definition, “new” is anything that was never in existence before.
Another problem Simons had with funds allocated through the RDA concerned an annual contribution to the Clear Lake Chamber of Commerce. Simons has been adamant in stating that when RDA funds are used there must be a return on the investment. He said that the city has seen no return on the $20,000 that it has contributed to the chamber each year and does not support continuing the expenditure.
Travel expenses, or lack thereof, were debated upon initiation by Councilmember Joyce Overton. Overton disagreed with the travel budget being budgeted at zero. She was adamant in moving the $5,000 in the council contingency budget, which is used to contribute to non-profit organizations and events, into the travel budget. She said that travel allowance is needed to allow staff and council members the opportunity to attend training sessions. She said that the state is always changing rules and regulations and that staff and the council should stay abreast of all those changes.
Neiman, whose comments were supported by Finance Director Mike Vivrette, said that from a staff point of view, in light of tight budget constraints, training is not an expense that the city can afford this year. He said he has discussed the issue with city staff and personnel as a whole has agreed to forgo training opportunities and/or foot the expenses themselves.
Furthermore, Nieman said he does have the ability to provide expertise in several areas in order to keep staff adequately trained.
Vivrette added that he, like others in city hall, must continue his education and stay up-to-date on laws and regulations in order to maintain a current license. He said he doesn”t expect the city to pay for the training required for him to keep his license current nor do other members of city staff. He added that it was a morale boast for staff to be able to contribute to relieving some of the hardships faced by the city in next fiscal year.
Vivrette said, however, that members of the council should not be expected to pay the bill for their training in light of the mere $300 stipend they receive each month.
Fiscal Year 2008-09 budgets are available for public review at Clearlake City Hall.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call her at 994-6444, ext. 11.
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