Finance Highlights 2011 0304 - Laserfiche WebLink

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2. Review of FY 2011 -12 Budget Development Schedule, Including City Council Work Sessions on City Budget Vesely reviewed the budget working calendar with the Committee. Mayor Cassidy would like to see detailed department budgets at the upcoming meetings for more discussion. Vesely briefly went over what will be discussed at future Finance Committee meetings, including RDA on March 18` proposed fees on April 15 and a summary of the FY 2011 -12 Proposed Budget on May 6` 3. Discussion Regarding California Public Employee Retirement System (Ca1PERS) Rates Vesely discussed the CaIPERS rates as a follow -up from the February 18, 2011 meeting. Vesely provided a history and projection of future rates for both the Miscellaneous and Safety plans from 1997 -98 through 2014 -15. The PERS board is scheduled to meet soon to discuss assumptions that may impact local agency rates. Councilmember Souza asked about alternatives to PERS. Vesely stated that at this time, there is no alternative without going to all bargaining units for vote and approval. However, if all bargaining units agreed to forgo PERS, the City would still be liable for all past debts. Councilmember Souza also questioned how PERS determines the rates for various cities and what, if any, is the incentive for PERS to lower the rates? Vesely stated that rates are actuarially based, and account for demographics, age of plan, etc. Mayor Cassidy requested a comparison of surrounding cities and the rates they pay for both Miscellaneous and Public Safety employees. Vesely stated that staff will provide at March 18 Finance Committee meeting. 4. Discussion Regarding Property Transfer Tax Rates As a follow -up to a question brought upon the Finance Committee on February 18, 2011, Vesely provided a comparison of the Real Property Transfer Tax (RPTT) rates for Charter cities in Alameda County. The City of San Leandro has one of the lowest rates, $6 per $1,000, highest only to the City of Hayward ($4.50/$1,000). Councilmember Gregory had posed the question of increasing the rates. City Manager Hollister stated that an increase to the RPTT must go before the voters at the next General Election and must be approved by a majority vote if the funds are to be used for a general purpose; a 2/3 vote is required for designated purposes. 5. Discussion Regarding Water Pollution Control Plant Rates Vesely reported that on June 21, 2010, City Council held a Public Hearing on the increase to Residential Sewer Service Rates for both single and multiple family homes in compliance with Proposition 218 requirements. City Council unanimously passed Resolution 2010 -069 approving the monthly maximum sewer rates for the residential and commercial services for five years beginning FY 2010 -11 through FY 2014 -15. The annual increase for residential services would be 5% per year and would be billed to residential customers via their annual Alameda County Property Tax bill. The City was to provide the County with the amounts to be billed by parcel number. Unfortunately, this did not happen. Because the City failed to communicate the new rates to the County, the rates were not increased and therefore the Water Pollution Control Plant Enterprise Fund did not receive the projected $268,109 in increased revenue for FY 2010- 11. In order to recover the lost revenue, the City will have to bill each residential parcel 5% for 2