Minutes 1993 0315 - Laserfiche WebLink

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Minutes - San Leandro City Council Meeting - March 15, 1993 Page - 19 - NEW BUSINESS (continued) The City Council referred the report to the City Council Finance Committee, consisting of Mayor Karp and Council Members Myers and Polvorosa. He said the Council Committee reviewed the Task Force recommendations, 300 employee recommendations, and 29 City Council recommendations; and, based upon that material , the Finance Committee, on March 1 , proposed a program which is a modification of the original Task Force recommendations but adheres largely to them. He said the recommendations included a $1 .8 million reduction in costs; reduction of full -time positions, including elimination of up to four Department Heads; shared clerical positions; and methods to reinvent government. He said it also proposes two new sources of revenue, and it balances the Budget for the long term, re-establishes the Reserves and Capital Improvement Programs, and proposes cultural diversity and economic development programs. John Jermanis, Finance Director, referred to the Budget Strategies document and said, in 1993-94, only $400,000 of uncommitted funds existed, which was 1% of the Operating Budget. He said, in the past year, the City lost $1 million in Property Taxes, and $1 .2 to $2.5 million is expected to be lost this year. He said the Task Force identified new revenue sources and service reductions, and the Finance Committee looked at how much could be reduced by reducing programs. He said it was recommended to reduce $1 .8 million. He said the revenue adjustments ,included adjusting the Property Transfer Tax from $2 per $1,000 to $6 per $1 ,000. He said the increases to the Utility Tax would only be implemented if the State takes the full $2.5 million from the City. He said the increase in residential would go from 5% to 6%, and cable TV would be added. He said the City Council also identified employee-efficiency suggestions of $125,000. He said, of the 29 City Council items, 23 are now implemented, and the City is looking into volunteers for Crossing Guards at no cost to the City. He said the Budget Strategies reflect the Transfer Tax and Property Tax for the Marina site. He said there is also a re-distribution of PERS funds which had been held in reserve pending the outcome of a lawsuit. He said these will replenish the Reserves and increase the Capital Improvement Program Funds. He said the City is also looking into a two-year service credit for early retirement to limit the impact on employees in terms of layoffs. He said the Strategies also provide for cultural diversity and economic development programs and include Disaster Preparedness to prepare the community and to retrofit essential City buildings. Mayor Karp noted that speakers had been asked to prepare Speaker Cards and would be limited to three minutes each. He thanked the Task Force for their many months of hard work and their recommendations. He thanked the City Council Finance Committee for their work and said the Task Force and employee information would continue to be used into the future. He said many cities in Alameda