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<br />Enterprise and the Golf Course Enterprise Funds. Program revenues to this fund in 2014-15 totaled <br />$2.04 million, a 6% increase from the prior year. <br /> <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 />CalPERS, 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 CalPERS funding are extra contributions to the pension from employees, which are up to 9% <br />of salary. <br /> <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 generates additional tax revenue for <br />the State to mitigate recent deficits. Passage of Proposition 2 in November 2014 allocates General <br />Fund surpluses to a rainy day fund to preserve State services during future economic downturns. <br />Local governments remain alert about how the State will balance its budget and how it might impact <br />local government. <br /> <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. Passage of Measure Z in <br />November 2010 and Measure HH in 2014 have improved revenues enough to ensure no additional <br />reduction in services since 2012. <br /> <br />City Council unrestricted reserves total $19.1 million in the General Fund at June 30, 2015. The <br />reserve balance is comprised of $5 million for Major Emergencies, $7.4 million for Economic <br />Uncertainty, $1.2 million from Community Impact fees, $600,000 for Employee Compensated <br />Absences and $4.9 million from other unassigned balance. In FY 2014-15, the City’s reserve <br />balance increased by an additional $350,000. <br /> <br /> <br />MAJOR INITIATIVES AND ACCOMPLISHMENTS <br /> <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 2014-15 <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 />viii