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File Number: 12 -070 <br />Mayor Cassidy instructed staff to provide the City <br />Council at the February <br />14, 2012 Work <br />Session an explanation of the funding the City will <br />receive: what is restricted and what is <br />unrestricted, as well as how <br />will the General Fund be <br />able to absorb the additional $200,000 <br />overhead expenses? Also, <br />Mayor Cassidy would <br />like a breakdown of all <br />expenses, e.g. <br />memberships; he does not <br />want expenses lumped <br />into a generic category. <br />Also, the City <br />Council should be given a <br />complete explanation of <br />the various programs and <br />how are they <br />beneficial to the city. <br />Mayor Cassidy also directed Mr. Sims and staff to present the City Council with a Scenario B. <br />He would like to see what programs can be retained if staffing cost were further reduced. <br />With this, Mayor Cassidy also instructed staff to research how much notice must employees <br />receive regarding lay -offs and what type of severance, if possible, can be provided. Also, can <br />other departments take on some of the responsibilities that are currently with Community <br />Development staff, e.g. the Finance Department may be able to absorb some of the financial <br />functions or perhaps contracted to a third party administrator. <br />City Manager Zapata instructed staff to notify outside sources, such as the Chamber of <br />Commerce, to attend the meeting on February 14, 2012 so they may be able to ask questions <br />and state any concerns they may have to potentially losing resources from the City. Mr. <br />Zapata also restated that staff will be prepared to provide additional information regarding <br />staffing, severance, and transferring responsibilities to other departments. <br />2. Discussion on Budget Amendment Adjusting Appropriations by Eliminating <br />Redevelopment Agency <br />Interim Finance Directory O'Leary introduced some components to amend the budget due to <br />the elimination of the Redevelopment Agency. There are continuing obligations the City must <br />pay that were paid out of the RDA fund. Appropriations to the General Fund to cover salaries, <br />benefits, and internal service charges must be provided for the period of February 1 through <br />June 30, 2012. Mr. O'Leary explained that the expenses exceed the revenues by $178,000. <br />Mr. O'Leary also stated that appropriations must be adjusted for the Project Areas, the <br />Successor Agency, and bond proceeds. <br />Mayor Cassidy stated that Budget Amendment should be taken to the City Council on the first <br />Council meeting in March. <br />3. Discussion Regarding Quarterly Investment Report Ending December 31, 2011 <br />Mr. O'Leary reported on the quarterly investment report for the period ending December 31, <br />2011. Due to the receipt of Property Taxes in December, the portfolio increased from $ 80 <br />million to $85 million. The rates of return for both the LAIF and Chandler investments were <br />exactly the same as the previous quarter, 0.38% and 1.47% respectively. Staff is continuing <br />to work with Chandler to extend the average maturity periods to gain higher interest rates. <br />4. Public Comments <br />Dave Grodin, representing the Chamber of Commerce, indicated that it is important Council <br />recognize that although reducing staff is difficult, it is important to keep the programs that are <br />important to the city. <br />City of San Leandro Page 3 Printed on 211512012 <br />