CCMIN03212017 - Laserfiche WebLink

Mayor Thorne suggested Mr. Kriegbaum send the information to his State representatives. In response to Councilmember Brown's question, Mr. Kriegbaum addressed the source of his research and data. PUBLIC HEARINGS AND OTHER MATTERS 12. Consider a resolution accepting the midyear FY 2016/17 Operating Budget and amending the FY 2016/17 Operating Budget accordingly Director of Finance Tina Olson presented details of the report noting there is no mid-year Capital Improvement Program report because there are not recommended changes. The report included a review of the City's General Fund, Enterprise Funds and Internal Services Funds. She addressed revenue estimates, recommended adjustments to expenditures and transfers and reported the goal is to maintain a balanced budget and ensure reserve levels are consistent with City policy. She listed General Fund Revenues, proposed reductions, increase in property taxes, property tax trend, decreases in sales tax and sales tax revenue trends. Discussion followed regarding sales tax revenues from internef sales and the State's status on developing a formula for determining same. Ms. Olson continued with her presentation addressing Development Services Fees and other significant revenue categories. She presented details of General Fund Expenditures, proposed changes, General Fund Reserves, Water Operations and Maintenance Fund and Sewer Operations and Maintenance Fund. Brief discussion followed regarding backflow administrative revenue. Ms. Olson presented the policy decision for City Council's consideration relative to the transfer of funds from the Vintage Village Project to the Capital Improvement Fund Reserve (CIPR), recommendations and next steps. In response to Councilmember Brown's inquiry, City Manager Nelson Fialho commented on the amount of the Vintage Village Project's fee to the City in lieu of building affordable housing units and options available for use of that money. It was noted the money could be used in a variety of ways to support low income housing. Councilmember Olson asked regarding adding staff to the Police Department and Mr. Fialho reported City staff is not comfortable, now, adding staff. Staffing decisions have been moved to the next two-year budget cycle. Mayor Thorne stated he is not prepared to decide on the Vintage Village Project fee until City Council's work plan is completed. Councilmember Olson expressed disagreement and concerns that all the financing for Pleasanton Gardens, Phase II is not on board. He noted corporate money is increasingly difficult to buy into that kind of an investment. He sensed that if the project would have been presented now, to this Council, Council would not accept in-lieu fees, but rather requiring low-income units to be built. He added that the fees should be kept in a Low-Income Housing Fund. Councilmember Narum asked regarding plans for increasing sales tax revenue in the future, staff reported the City is aggressively working on economic development noting the Economic Development Zone on Johnson Drive has a big impact on it, long term. Mr. Fialho reported the City Council Minutes Page 3 of 6 March 21,2017