Finance Highlights 2006 0905 - Laserfiche WebLink

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FI' 2006-07 Budget Adjustments Page 2 of 3 July 14, 2006 The FY 2006-07 Budget also provides funding of $1.3 million towards the first years obligation of the City's unfunded retiree medical liability (GASB 45), which is currently estimated above $15 million. The one-time funding is made possible from prior year budget savings appropriated for claim settlements and judgments. At this time, a Long-term funding solution for funding the City's GASB 45 liability has not been identified. If the City chose not to pre-fund its GASB 45 obligation, $1.3 million could be made available in part. If FY 2006-07 pre-funding is redirected to address an unmet need, staff recommends that some remaining amount be retained as contingency to address any increase required to maintain the City's 80% confidence level that all self-insured claims can be covered. The current self-insurance reserve of $8.1 million assumes no unrealistic claims will be incurred in the fiuture. During the last fiscal year, the City has been exposed to potential liability that may lower the current self-insured confidence level without additional funding. Finance Committee discussion should also include whether or not the City should prudently pre- fund its GASB 45 and to what degree and what confidence level is an appropriate risk for the City's self-insurance program. Restoration of Positions and Community Activities The following needs have been identified as a Council priority: School Resource Officer (SRO) -Currently, two SRO positions are funded through the City's General Fund. One SRO is stationed at the San Leandro High School while the other SRO rotates between the two middle schools. The cost of an SRO can range from $120k to $156k, depending on step and benefit requirements. Cherry Festival - In FY 2003-04, the Cherry Festival had a net cost of approximately $57k ($43k in revenues were used to offset the overall cost of $100k). The historical cost of the event included a two day Festival that included a parade. The attached worksheet provides a revenue and expenditure breakdown and an example of in-kind services that were received in the past. Sunday Library Service -The cost of opening the Library for eight hours on Sunday's is estimated at approximate $63k annually. The estimate includes afull-time Librarian, three part-time positions, security, and utilities. The attached worksheet provides a breakdown of the annual cost estimate. Community-Based Organizations -The FY 2006-07 budget includes $342,500 for community assistance funding and $25k for various community benefits. Although the General Funds contribution remains the same as FY 2005-06, overall funding decreased by $41,500 (CDBG $12,500 and gun tax $29k). The attached worksheet provides a recap of the Community Assistance Funding by agency. The following are other "Unmet Needs" and ongoing deferrals that maybe addressed with one- time revenue windfalls: