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CITY COUNCIL FINANCE COMMITTEE <br />April 15, 2008 <br />4:00 p.m. - 5:30 p.m. <br />San Leandro City Hall <br />835 East 14t~ Street <br />San Leandro, California <br />(Sister Cities Gallery) <br />HIGHLIGHTS <br />Committee Members: Mayor Santos, Vice Mayor Grant (Chair), Councilmember Gregory <br />City Staff Present: City Manager Jermanis, Assistant City Manager Hollister, Interim Finance <br />Director Carter, Deputy Finance Director Rodriguez, Budget & <br />Compliance Manager Perini, City Engineer Joseph, Assistant to the City <br />Manager Diaz, Accountant II Galvin, Administrative Assistant III Perez <br />Public Present: Charles Gilcrest <br />The meeting was called to order at 4:04p.m. <br />1. Discussion Regarding Proposed General Fund Budget for 2008-09 <br />Interim Finance Director Carter presented a PowerPoint presentation on the fiscal year 2008-09 <br />Preliminary Budget. The presentation also included highlights projecting that the current FY <br />2007-08 General Fund would end with a $6.9 million negative net of operation, $2 million more <br />than previously reported due to the anticipated shortfall of revenues. <br />Carter explained that the revenue projection for fiscal year 2007-08 is $74.7 million and at the <br />current rate, revenue can not substantiate current expenditures. Vice Mayor Grant addressed her <br />concern on presenting a budget with a $9 million deficit. Carter stated that the City would use <br />$9 million of Economic Uncertainty Reserves to balance the budget. Carter explained that Sales, <br />Utility User, and Real Property Transfer Taxes are expected to continue to decrease while the <br />Business License Tax revenue will increase due to the CPI adjustment. <br />Grant also stated her concern on increasing staff when it is apparent that Salaries and Benefits <br />are the City's biggest expense. She also indicated that she is not comfortable using almost half <br />the reserve funds. Mayor Santos stated that the staffing is necessary to maintain the level of <br />service that our citizens expect and he does not see any other alternative than to use reserves. <br />Assistant City Manager Hollister stated that Council may direct staff to review the amount of <br />reserves to be used but will have to decide the level of service to be maintained. Carter indicated <br />that staff is awaiting further director from Council and Revenue Ad Hoc Committee. <br />1 <br />