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File Number: 18-113 <br />1.B. Announcements <br />None <br />2. DISCUSSION ITEMS <br />2.A.18-051 General Fund Forecast - 10 Years <br />Assistant City Manager Kay introduced the discussion of the 10 year forecast. The forecast is <br />intended to model how assumptions can impact the City based on different scenarios and use the <br />forecast as a tool to assist with fiscal changes in assumptions and/or policies. As discussed at <br />the City Council Planning Retreat, there is interest in hiring a consultant to work with City staff on <br />this project. <br />Councilmember Lee stated that he agrees with hiring a consultant to assist with creating a forecast <br />model that can be used for years to come. <br />Councilmember Hernandez asked if the forecast model would be Excel based or built for the City. <br />Finance Director Baum stated that he has spoken with a couple of consultants and was told by <br />one consultant that a forecast model (20 year) can be built utilizing Microsoft Excel and anyone <br />who is proficient will be able to manipulate the data within the model. The second consultant <br />stated that a “tailor made” forecast table will be built specifically for the City of San Leandro, <br />which resembles the table the City currently uses however would be more robust and have more <br />people refining to allow the table to be used repeatedly. Mr. Baum stated that an RFP (Request <br />for Proposals) would be solicited from various consultants and based on the proposals, a <br />consultant would be chosen. <br />Mr. Baum provided the Committee with a copy of the presentation that was provided at the City <br />Council Planning Retreat (with a few changes). Mr. Baum explained the revenue, expenditures, <br />debt, and all projections for the upcoming fiscal years. Mr. Baum provided a breakdown of the tax <br />revenue: Transient Occupancy, Business License, Parking Lot, and Cannabis. <br />To address future budget challenges, Mayor Cutter stated she would not support taking money from <br />the Prioritizing Unfunded Liabilities Liquidation (PULL) account as it was created for meeting <br />post-employment benefit expenses. <br />Mr. Kay spoke to the City’s reliance on retail and how, over the next 10 years, people will be making <br />purchases over the internet. Councilmember Lee stated that retail will still be valuable for the City <br />of San Leandro in the future. <br />Mr. Baum stated that he will bring a potential RFP for a consultant to assist with the forecast back <br />to the Finance Committee. Mayor Cutter asked that prior to the RFP going out, the Finance <br />Committee review the scope of services. <br />Budget and Compliance Manager Perini commented on the current forecast model being used. <br />Mrs. Perini informed the Finance Committee that the model does include many variables, <br />including detailed salary and benefit costs as per the City’s memoranda of understanding with <br />Page 2 City of San Leandro Printed on 3/13/2018 <br />396