Finance Highlights 2006 0905 - Laserfiche WebLink

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FY 2006-07 Budget Adjustments July 14, 2006 Page 3 of 3 Capital Improvements -In the past few budget cycles, the City has made no contribution to the City's Capital Improvement Plan (CIP), except on select projects where matching was required in order to receive grants or other assisted funding. Potential projects for consideration may include the Senior Center, competitive pool, and street improvements. Streets -Deferral of major street repair and reconstruction. Ongoing deferral towards the minimum standards required to maintain city streets in fair condition is below the necessary funding of $6 million annually. In FY 2004-05, no investment was made towards street repair and reconstruction. In FY 2005-06, $1.2 million was allocated and the FY 2006-07 Budget proposes to invest the same $1.2 million level. GASB 45 -GASB 45 is a relatively new law requiring public entities to disclose their unfunded post-retirement debt with the recommendation that public agencies begin annual funding of the amount needed to cover all post-retirement benefits for retirees. As mentioned earlier, the City estimates its total current liability above $15 million and had proposed to make its first year of funding possible from. current savings in the Litigation and Claims Settlement budget. Along-term strategy for funding the City's total liability has yet to be determined. Asset Replacement Reserves -Currently, the City does not have the following reserves recommended as a best business practice: Fire equipment replacement, technology (for telephone systems, computer hardware and software and central service equipment needs) and a major facility and machinery repairs and replacements (for roof repairs or replacement, HVAC systems and major equipment replacement). Other Positions and Community Activities - In addition to the above Council Priorities, the following are previously reduced services for consideration when a new permanent revenue stream becomes available: disaster preparedness, fire inspections, police investigations, traffic, DARE and community compliance. Finance Committee's recommendation on restoring certain positions and community activities will be shared with the Council in September 2006.