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CITY COUNCIL FINANCE COMMITTEE <br />March 1, 2006 <br />4:00 p.m. — 5:30 p.m. <br />San Leandro City Hall <br />835 East 14t6 Street <br />San Leandro, California <br />(Sister Cities Gallery) <br />HIGHLIGHTS <br />Committee Members: (Chair) Mayor Young, Councilmembers Starosciak and Stephens <br />City Staff Present: City Manager Jermanis, Assistant City Manager Hollister, <br />Finance Director Baloca, Budget & Compliance Manager Chan and <br />Deputy Finance Director Rodriguez <br />Public Present: Chamber of Commerce representative Heidi Feinberg <br />The meeting was called to order at 4:05 p.m. <br />1. Discussion Regarding 2005-06 Mid -Year Performance Report <br />Finance Director Baloca reported on the City's Mid -Year Performance. The City's General Fund utilized <br />$562,000 from available reserves for cash flow needs. $10.4 million in available reserves are projected <br />at the end of June 20, 2006, which is better than anticipated. <br />Factors that helped improve the City's overall finances are: <br />a) Expected Sales tax growth of 2% appears to be on track. <br />b) The City received $1.38 million in 2003-04 vehicle license fee money (VLF), which the State <br />borrowed and repaid a year in advance. <br />c) Property assessed valuation increased 6.9% from the 2004-05 to 2005-06 fiscal year. <br />d) LAIF's investment yield as of December 31, 2005 was at 3.63% which is 1.63% higher than a <br />year ago. <br />The following will impact the City's $3.1 million structural shortfall: <br />a) Ongoing revenue growth compared to the increase of ongoing expenditures. <br />b) Outcome of the business license tax ballot measure. <br />c) Current employee negotiations. <br />d) Postponed maintenance needs/ongoing deferrals. <br />e) Success of future proposed revenue enhancements. <br />