Finance Highlights 2009 0224 - Laserfiche WebLink

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CITY COUNCIL FINANCE COMMITTEE February 24, 2009 9:OOa.m. -10:30 a.m. San Leandro City Hall 835 East 14th Street San Leandro, California (Sister Cities Gallery) HIGHLIGHTS Committee Members: Mayor Santos, Councilmember Gregory, Councilmember Prola City Staff Present: City Manager Hollister, Interim Assistant City Manager Diaz, Police Chief Willis, Community Development Director Sims, Recreation & Human Services Director Knudtson, Library Services Director Bohne, Human Resources Director Caire, Public Works Director Bakaldin, Deputy Finance Director Rodriguez, Budget & Compliance Manager Perini, Sr. Accountant Galvin, and Administrative Assistant III Perez. Public Present: Captain Overton, Interim Captain Pricco, Kathy Ornelas, Cindy Fonzeno, Jerry Maughan, Dan Walters, and Sabrina Almazan The meeting was called to order at 8:58 a.m. 1. Continued discussion Regarding General Fund Preliminary Budget 2009-2010 City Manager Steve Hollister reminded the Committee that at the February 17, 2009 Finance Committee meeting, all departments presented their proposed budget reductions for the next fiscal year however time did not allow for discussion or questions from the Committee. Hollister advised the Committee that a reduction target has been set and must be met. If the Committee chooses not to follow the reduction recommendations set by the departments, they must find other areas to reduce. Staff is looking to the Committee for direction on how to proceed. Hollister asked for approval of the Committee to proceed with the idea of offering a "Golden Handshake". The Golden Handshake will be offered in targeted areas that need to reduce the workforce and therefore would not be offered to everyone; further explanation will be provided by Justinian Caire, Human Resources Director. Mayor Santos asked for further discussion and Councilmember Prola commented that he was in agreement with offering a Golden Handshake. Hollister also mentioned that information received from. CaIPERS indicated that in the next two years, there will be an increase of 2-3% for Miscellaneous Employees and 5% in Public Safety rates due to investment losses. Hollister advised the Committee that they would go through the PowerPoint presentation so the Committee may ask questions. Hollister began by stating that prior to budget reductions, there was an estimated shortfall of $11.4 million; with reductions, the shortfall was reduced to $3.9 million; and after an internal service fund transfer of $1 million from the Self-Insurance Fund, 1