Finance Highlights 2011 0218 - Laserfiche WebLink

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Mayor Cassidy thanked Majors for his time Committee Recommendation Committee recommended taking to Council for approval. 2. Discussion Regarding FY 2010 -11 Budget: a. Mid -Year Budget Adjustments b. Mid -Year Budget Status Update Finance Director Vesely provided a review and update of the FY 2010 -11 Mid -Year Budget and recommended budget adjustments. Vesely stated that the projected deficit has decreased largely due to the increase in sales tax revenue, which does not include Measure Z. Sales Tax revenue increase of approximately $1.66 million is based upon data received from the State Board of Equalization regarding the City's Triple flip backfill revenue adjustment back to the normal base. Vesely stated that Property Tax revenue projections remain flat and reported that surrounding cities, e.g., Hayward and Fremont are also projecting flat to no growth. Utility Users Tax, 911 Tax and Other Taxes have also shown a slight increase. Other Revenues, e.g. interest earnings have decreased. Vesely also reported to the Finance Committee that General Fund Expenditures that staff continues to implement cost saving measures, such as a hiring freeze and furloughs, and projects a net savings of approximately $300,000. The Committee expressed interest in discussing the agreement between the San Leandro School Board and the City of San Leandro on the issue of crossing guards. Committee Recommendation Committee recommended taking to Council for approval. 3. Discussion Regarding California Public Employee Retirement System (Ca1PERS) Rates Vesely stated that the intention was to bring to the Finance Committee more information regarding the possible impacts of CaIPERS lowering the assumed rate of return on portfolio earnings. CaIPERS has not yet taken action on this topic. Vesely did advise the Committee that the current rates for Miscellaneous Employees is 13.22% and will increase by 4.3% for the 2011- 12 fiscal year; with an estimated rate increase of 1.6% for the 2012 -13 fiscal year. The current rate for the sworn officers is 42.58% and will increase by 4.1% and 1.2% for the fiscal years 2011 -12 and 2012 -13 respectively. Assistant City Manager Marshall informed the Committee that the rate for the sworn plan includes about 6% related to the costs of the retired firefighters that were formally employed by the City before the City chose to contract out the fire services. Mayor Cassidy requested a charted list to view historical progression of rates and what the City has paid. Councilmember Souza stated that it has been reported to Council that years back the City negotiated with the bargaining units to pick up the employees portion of CaIPERS in lieu of a 2