CCMIN031516 - Laserfiche WebLink

City Manager Fialho stated the new assessed valuation puts the City 31d behind Oakland and Fremont in assessed valuation. He also explained the Proposition 13 standard and it is a reflection of the planning done within the past several decades. Assessed valuation is based on commercial and residential property. Councilmember Pentin stated that even though we are paying significantly more into the County coffers, we are not proportionately represented on certain Boards. Director of Finance Olson spoke about General Fund expenditures including repair and replacement at FY 2014 -2015 year end. The net decrease is driven by $1.6 million reduction in personnel (vacancies). There are 7.0 new proposed FTE's and she described their status and job descriptions. There are 4 new positions which will stay on and the City completed a process where all Department heads were convened and came up with a prioritized list regarding positions that were lost during the recession. The City is proposing 11 FTE over -hire Relief Firefighters, however there is no material cost increase. When a firefighter retires or leaves, the LPFD they can replace the vacancies. This will also extend the time between the Fire Academies with more hires and not having staff working the mandated overtime due to staffing the Academies. There were non - personnel net expense increases of $951,119 and a slide was displayed which described the particulars including PG &E increases, temporary staff from outside agencies, garbage and recruitment expenses, a utility audit, and LPFD expenses. Contract plan checkers and other miscellaneous increases were described. Councilmember Olson expressed concerns with the PG &E expenses. Staff stated that part was for well use during the drought. There was pumping out of the ground. The street light repairs increased as for a few years the maintenance was postponed due to the replacement with LED lights. Director of Finance Olson spoke regarding the potential uses for the General Fund surplus for FY 2015 -2016. The proposed projects are a 10% reserve for economic uncertainties, capital improvement reserve, repair and replacement fund, and the PERS pre- funding. This would total $3,989,123. Director of Finance Olson spoke about the Water Operations Fund. There were adjustments for Utility Billing System allocation back in August. There was an adjustment to personnel due to vacancies. There is a net increase of $113,507 including personnel savings, increased PG &E expenses, replacement of lab equipment, strategic planning, and miscellaneous increases. Director of Finance Olson spoke about the Sewer Fund including increases to the Utility Billing System, PERS prefunding, a planning consultant, and miscellaneous decreases. There is a total net increase of $7,294. Director of Finance Olson spoke regarding the Repair and Replacement Fund. There is a total increase in the fund balance of $994,254 including additional funding from General Fund and Water and Sewer Operating Funds and expense adjustments for contractual landscape maintenance services at the Cultural Arts Building and Street Light replacement cost increases. Director of Finance Olson stated the next steps will be returning to the Council in November with the actual year ends and audit information. Mayor Thorne noted there were no speakers to address this item. Councilmember Narum spoke regarding the Joint School District City Liaison meeting last night and the City's financial picture is stable whereas the School District's is at the whim of City Council Minutes Page 6 of 10 March 15, 2016