01 - Laserfiche WebLink

Councilmember Thorne questioned the status of road mapping processes and different performance standards, and whether the City would stay at 80% of its unfunded liabilities. Mr. Fialho said personnel and pension costs drive these factors and staff will return to the Council with discussion in closed session in July. Vice Mayor Cook-Kalli noted there were no public speakers. Councilmember Thorne complimented staff on their preparation and presentation of the budget. He suggested staff closely monitor the budget with quarterly reviews, and hoped that additional contingencies will be developed instead of than dipping into the reserves. He sensed a decline in the confidence in government in general and the desire for a more active role in the financial control process, and asked that the process include establishing performance measures with benchmarking, looking to limit revenue that can be spent on consultants, streamlining operations, review of retirement and non-retirement employee turnover rates, and improvements with time and quality of work. MOTION: It was M/S by Thorne/Sullivan to approve the 2011/12FY and 2012/13FY Operating Budgets and the 2011/12FY Community Development Block Grant Program, and formalize the Council's intent to hold discussion on a road mapping process that includes development of performance measures that measures the performance of the City Council. Councilmember Sullivan thanked staff for their presentations and recognized the hard work and importance of what it takes to run a City. He believes the budget has been developed with many strategies to balance it and continue to maintain City operations. Regarding the road mapping process, pension reform and unfunded liabilities, he asked that this be started after adoption of the budget in July. He voiced support of a road map that includes work to also meet to develop a long-term fiscal estimate, as well, and asked that this be made part of the motion. Vice Mayor Cook-Kallio thanked staff for their presentation of the budget and illustration that the General Fund is not the same thing as the total amount of revenue that comes to the City. In comparing some percentage of the general revenue, they may be similar or different but she wants to be sure the public understands where the money is coming from. She is committed to the idea of addressing pension reform in July, but she was not sure what road mapping means and disagreed with putting a timeline on it without understanding its complexities. Councilmember Thorne said 'road mapping' is developing a strategy for achieving specific goals and objectives. Councilmember Sullivan suggested holding the pension issue in July and another discussion on road mapping or long-term fiscal analysis as a separate item. Mr. Fialho noted that the City Council has had a discussion on road mapping some kind of policy that establishes benchmarks for managing personnel costs long-term which is very complex and requires some time. This discussion was committed to be held following adoption of the two-year budget. Some of this has labor consequences which require a closed session and this can occur between July and August, also in the context of airing the parameters for negotiations that need to commence with police and fire this year. He said long-term fiscal responsibility has always been a priority and staff had hopes of developing a 10-year fiscal plan following adoption of the General Plan in August 2009, but this did not occur because shortly thereafter, the General Plan was called into question. Most assumptions were based on residential capacity of 29,000 units. Staff is in the midst of developing a new Housing Element that will take the City beyord this. All this generates revenues for the City, as well as City Council Minutes Page 5 of 9 June 21, 2011