2A Work Session 2012 0214 - Laserfiche WebLink

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Mayor Cassidy asked Mr. Sims if the City is currently obligated to fund a Capital Improvement Project (CIP) that will now have to be funded by the General Fund. Mr. Sims stated that there are no pending CIPs at this time. However, the Eden Road Project will be affected as the RDA had entered into an agreement with the City which most likely not be allowed even though it is listed as an enforceable obligation. Mr. Sims stated that revenue will be received in three ways: Redistributed Property Tax: $760,000 /annually; Administrative Allowance (as stated by the Law), $250,000 /annually; and City of San Leandro Pass - Through Payments, $310,000 /annually. Therefore, the total funds to be allocated are $1,320,000. Mayor Cassidy inquired about possible litigations or legal expenses related to former RDA obligations. Administrative Analyst Kay stated that any lawsuits associated with enforceable obligations can be paid through the tax increments received for the debts. Any other legal inquiries will have to be budgeted and paid from the $250,000 administrative allowance fund. Mr. Sims presented the Committee with a plan for Future Funding Targets and how the funding may be allocated, assuming the entire $1,320,000 is allocated to business development and housing programs. The funding of $1,320,000 is to be distributed as follows: Staffing, $775,000; Programs, $326,000; Overhead, $171,000, and Administration, $48,000. Mr. Sims presented a matrix to the Committee which explained in detail staffing, programs, and administrative expenses funded by RDA. Mr. Sims explained that $1.2 million is what is currently paid from RDA for staffing. Of the total available funding of $1.3 million, only $775k is designated for staffing, and therefore staffing expenditures will need to be reduced by $425k. Mr. Sims also went over programs that may have to be reduced or eliminated. Mayor Cassidy instructed staff to provide the City Council at the February 14, 2012 Work Session an explanation of the funding the City will receive: what is restricted and what is unrestricted, as well as how will the General Fund be able to absorb the additional $200,000 overhead expenses? Also, Mayor Cassidy would like a breakdown of all expenses, e.g. memberships; he does not want expenses lumped into a generic category. Also, the City Council should be given a complete explanation of the various programs and how are they beneficial to the city. Mayor Cassidy also directed Mr. Sims and staff to present the City Council with a Scenario B. He would like to see what programs can be retained if staffing cost were further reduced. With this, Mayor Cassidy also instructed staff to research how much notice must employees receive regarding lay -offs and what type of severance, if possible, can be provided. Also, can other departments take on some of the responsibilities that are currently with Community Development staff, e.g. the Finance Department may be able to absorb some of the financial functions or perhaps contracted to a third party administrator.