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year. The Shoreline Enterprise Fund was established in 2002-03 and combined the Marina <br />Enterprise and the Golf Course Enterprise Funds. Program revenues to this fund in 2012-13 totaled <br />$1.8 million, a 6% decrease from the prior year. <br />While the City has implemented considerable expenditure/service reductions to balance its budget, it <br />continues to face increased operating costs. For example, the City's contribution rates for employee <br />pensions continue to rise due to prior portfolio losses and a change in actuarial assumptions by <br />Ca1PERS, with additional increases projected in future years. The City has offset some of these <br />increases with staff reductions in recent years, and will be working with employee groups over the <br />next couple of years to address this growing cost. Partially mitigating the double digit increases in <br />annual Ca1PERS funding is the refinancing of a Police pension fund unfunded liability through lower <br />interest cost bonds and loans totaling $24 million guaranteed by the General Fund, which were <br />completed in 2011-12. <br />The State of California is forecasting a balanced budget over the next 18 months. The State's <br />savings and borrowings from special funds, property tax shifts, restructuring of the state -local <br />government relationship that shifts funding responsibility to local government for certain services <br />results in a shift of cost being transferred to cities and counties. State lawmakers' dissolution of <br />redevelopment agencies eliminates funding for redeveloping, improving and revitalizing project and <br />blighted areas in the city. Passage of Prop 30 in November 2012 will generate additional tax revenue <br />for the State to mitigate recent deficits. Local governments remain alert about how the State will <br />balance its budget and how it might impact local government. <br />Long-term perspective <br />The City adopts an annual budget, but employs long-term planning as the framework for its fiscal <br />decisions. While San Leandro's underlying economy is viewed as positive in the long-term, today's <br />economic challenges, notably in the General Fund, must be dealt with now to ensure long-term fiscal <br />stability. The City Council has implemented various cost cutting measures after operating <br />expenditures peaked in 2008-09 to produce recurring budget savings. Such actions result in <br />unwanted, but unavoidable reductions in service to the community. To help buffer the immediate <br />impacts of additional service reductions, the City has used some of its one-time reserves. <br />City Council unassigned reserves, total $14.8 million in the General Fund at June 30, 2013. The <br />reserve balance is comprised of $5 million for Major Emergencies, $4.9 million for Economic <br />Uncertainty, $4.4 million from other unassigned balance, and $466,834 for compensated absences. It <br />is anticipated that in FY 2013-14, the City will continue to rebuild its reserve balance. <br />MAJOR INITIATIVES AND ACCOMPLISHMENTS <br />In its role of providing policy direction and general oversight, the City Council establishes major <br />goals for City service delivery. These goals are identified and quantified in the City's annual budget. <br />The City can boast of an impressive list of major initiatives and accomplishments during 2012-13 <br />that helped achieve the City's mission of serving the public and enhancing the quality of life in San <br />Leandro. Some of these major initiatives and accomplishments include: <br />