Finance Highlights 2008 0917 - Laserfiche WebLink

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ATTACHMENT B CITY OF SAN LEANDRO MEMORANDUM DATE: April 17, 2008 TO: John J. Jermanis, City Manager FROM: Perry Carter, Interim Finance Director SUBJECT: Ad Hoc Committee Budget Meeting The Council Ad Hoc Committee held its kick-off meeting on April 7, 2008 and considered a report from staff addressing various budget issues for fiscal year 2008-09 and beyond. The report noted that the City's General Fund is facing a deficit for fiscal year 2008-09 of approximately $9 million and if current trends continue, deficits for fiscal years 2009-10 and 2010-11, are anticipated. In response to these projections staff developed a series of revenue options for the Committee to consider. The Committee discussed the report and directed staff to develop additional information for consideration at future meetings. The Committee indicated that in addition to revenue enhancements, it would also like to see options for expenditure reductions. The Committee further noted that it was interested in reviewing expenditures from a "level of service" perspective. That is, the Committee expressed a desire to have a standard that defines the "right level of service" for the City to provide. This standard could then be used to gauge the impact of any budget reductions that might be proposed. Budget Approach for Fiscal Year 2008-09 On April 15, 2008, staff brought forward to the Council Finance Committee the Preliminary Budget for fiscal year 2008-09. The expenditure budget for the General Fund is approximately $82.2 million and is balanced through the use of reserves. As is the case with many California cities, San Leandro is using reserves to cushion the impact of the current economic slowdown. The General Fund budget is, for the most part, a "hold the line" budget. That is, there are no reductions to current programs or staffing levels and in certain cases, as with fuel purchases, budgets have been augmented. In the case of the Police Department, pressing staffing needs have been addressed through the addition of two Public Service Aides, one Dispatcher and one sworn officer dedicated to crime prevention.