Finance Highlights 2012 0504 - Laserfiche WebLink

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File Number: 12 -285 3. Discussion on Quarterly Financial Report as of March 31, 2012 for the 2011 -12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budgets Mr. O'Leary stated that at the previous City Council Work Session, the City Council raised the question as to why the Internal Services Funds are so large. Mr. O'Leary explained to the Finance Committee that the need to continue to build the Internal Services Funds (Building Maintenance, Information Technology, and Equipment Maintenance) is that, over the next 5 years, there are repairs and replacements that must be made. These repairs and /or replacements include: repairs to the City's buildings, building HVAC systems, software upgrades, and fleet replacements. Staff recommends leaving the Internal Service Funds as they are. Public Works Director Bakaldin explained to the Finance Committee that currently the Building Maintenance and Equipment Maintenance Funds are inadequate and grossly underfunded. Mayor Cassidy instructed staff to provide a multi -year plan for the Internal Service Funds so that they may be able to analyze properly. 4. Staff Report • Refinancing Opportunities for Existing City Debt • Revenue Analysis and Summary, Alameda County Cities • City Deposits Utilizing Local Community Development Bank Finance Director Baum spoke to the Finance Committee on the opportunities of refinancing other City debts and inquired if the Finance Committee is interested and, if so, would they like to use the same refinancing team as with the Pension Obligation Bonds for the Public Safety CalPERS Side Fund. The Finance Committee agreed that the financing team of Public Financial Management and Jones Hall continue assisting the City. Mr. Baum stated that in reviewing the City's general fund debts, there is a potential net present value debt service savings of $400,000. Mayor Cassidy stated that he agrees we should look into refinancing the debt however does not want to extend the debt's final maturity. Mayor Cassidy would like to have a discussion at a future Finance Committee meeting regarding parking rates and the idea of charging for parking at the Marina. Assistant City Manager Marshall stated that currently Engineering and Business Development are working on the City's parking strategy. At the previous Finance Committee meeting, City Manager Zapata proposed investing funds in the Certificate of Deposit Account Registry Service ( CDARS) through one of the local banks. Mr. Baum stated that he has reviewed banks in the city and unfortunately not one participates in the CDARS program. The closest bank to participate is in Oakland. Mayor Cassidy would like staff to continue to research and bring back to the Finance Committee in September. Mayor Cassidy suggested looking at banks in East Oakland as they are closer to the City of San Leandro and therefore may bring the City revenue. Councilmember Prola inquired where the City's money is currently being invested. Mr. Baum stated that $75 -80 million is in the Local Agency Investment Fund and US government securities and unfortunately, yields are low and therefore the City is not earning much interest. City of San Leandro Page 3 Printed on 512912012