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because they were able to finance with their own City funds. Vesely also stated that another <br />option would be to borrow funds from the Water Pollution Control Plant (WPCP) Fund. <br />However more analysis is needed regarding the long -term WPCP fund balance impacts. <br />2. Discussion Regarding Business License Tax for New Small Businesses <br />Director Vesely provided the Committee with a list of the new small businesses that have come <br />into the City of San Leandro from the period of July 1, 2010 — June 2, 2011. In that period there <br />were 377 New Small Businesses (5 or less employees), not including landlords. Mary Ann <br />Perini, Budget and Compliance Manager, explained to the Finance Committee the logic behind <br />the definition of a Small Business. Perini explained that staff used City Ordinance the Business <br />Improvement District (BID) which determines which businesses must pay the BID Assessment. <br />In accordance with BID, if a business has 5 or fewer employees, the assessment is not charged. <br />Therefore for the purpose of the Finance Committees request, the same logic was used for this <br />study. <br />Mayor Cassidy requested staff to provide, in email, a subtotal based upon the number of <br />employees. Mayor Cassidy also requested that in the near future, Business Development work <br />with the Council on determining the best way to bring new businesses into the City. <br />Councilmember Souza suggested that incentives such as waiving the Business License Tax for <br />the first year for companies that join the Chamber of Commerce. <br />3. Discussion Regarding Biennial Budget Process <br />Director Vesely recommended to the Finance Committee to defer the implementation of a <br />biennial budget for one fiscal year. With the announcement of her departure and the fact that the <br />Finance Department has lost about 22% of its work force, Vesely stated that it would be a huge <br />struggle to implement a biennial budget at this time. Staff will continue to provide the Council <br />with updated multi -year forecasts for all City revenue funds. The multi -year forecasts will allow <br />Council to make decisions based on budgetary impacts for the next four years. <br />The postponement will also allow staff to obtain the necessary training needed on the current <br />financial system as well as provide departments with the training on how to budget for two years <br />vs. one year. <br />The Finance Committee is aware of the current situation within the Finance Department and <br />agreed to hold off one year. Mayor Cassidy did address his concern with holding off one year <br />and stressed that staff utilize this year and obtain all the necessary training. <br />Director Vesely also announced to the Committee that the City has again received the <br />Distinguished Financial Reporting Award from the Government Finance Officers Association for <br />the Comprehensive Annual Financial Report (CAFR). Mayor Cassidy asked that this be added <br />to the City's website. <br />Recommendation to City Council <br />The Committee recommends City Council approval of deferring the implementation of the <br />biennial budget for one fiscal year. <br />2 <br />