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MINUTES Page 7 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-October 2, 2006 Public Comments on Item 10.C.: Diana Souza, San Leandro resident, addressed the City Council III support of the restoration of these budget items. End of Public Comments on Item 10.C. Councilmember Stephens expressed concern that while he believes these are wonderful items, the City does not have the money to fund them on an ongoing basis. He pointed out that the City has not set aside funding for reserves for three years, has under-funded the CIP by 80% for the past two years, has identified a structural deficit of about $500,000 and has not yet achieved a balanced budget. Councilmember Stephens noted that the Council has traditionally been very practical and fiscally prudent, and he asked how the City can hope to replenish its reserves and meet its infrastructure needs if it continues to deficit-spend. Councilmember Stephens stated he cannot support the expenditure of one-time funds for ongoing expenses. Vice Mayor Grant expressed appreciation for the work of the Finance Committee in bringing this recommendation to the Council. She stated that she is struggling with the decision to use reserve money to deliver community services. Vice Mayor Grant commented that she feels reserves should be used for more critical and necessary services, such as Police and Fire, and not for community events. She stated support for the events and decorations as an important way to build community, but expressed concern for the way they are proposed to be funded. Vice Mayor Grant suggested that if this item is approved, the Council should look for ways to offset some of the costs of the Cherry Festival and evaluate whether the community is willing to help support it. Councilmember Starosciak commented that the items proposed for restoration were cut from the budget before she came on the Council. She noted that since she has been on the Council, the City's reserves have not been reduced, and creative ways have been found to fund other projects, such as the Manor Branch Library, the Washington Manor pool and improvements on Lewelling. Councilmember Starosciak pointed out that the items proposed for restoration are of minimal cost yet reap huge benefits for the community. She stated that she would work hard with the City Manager to provide additional funding to maintain the reinstated services. Councilmember Santos concurred wholeheartedly with Councilmember Starosciak's comments. He commented that all the available funds in the Self-Insurance Fund are not being used. Councilmember Santos stated that the City needs to find the means to increase Police staffing to 94 sworn officers. Vice Mayor Grant echoed Councilmember Santos' comment that more Police Officers are needed, both on the streets and in the schools. Vice Mayor Grant suggested a friendly amendment to the motion that if the City cannot find sufficient community co- sponsorship by March, the Cherry Festival would be cancelled.