CCMIN 06012021 - Laserfiche WebLink

In response to Councilmember Balch's inquiries, Director of Finance Olson advised other than the position mentioned earlier, the City has not budgeted for other positions or non-labor to help implement Senate Bill (SB) 1383 in this budget. City Manager Fialho advised the City has $1 million set aside to offset SB 1383 costs. He explained some of it was paid years ago by Pleasanton Garbage Service (PGS) and earmarked for this implementation. He advised it has not yet been allocated and clarified the $1 million he just mentioned is for start-up costs only and annual operating expenses could be covered through rate adjustments because it is a new program. In response to Councilmember Balch's inquiries, Director of Finance Olson clarified the Low-Income Housing Fund is funded by developer fees in lieu of building 20% affordable housing. In response to Councilmember Balch's inquiries, Director of Finance Olson reported she does not expect the per- and polyfluoroalkyl substances (PFAS) project to be fully installed in the next two years which is why this budget does not denote operating costs. In response to Councilmember Narum's inquiries, Director of Operations and Water Utilities Yurchak advised neither voluntary nor mandatory water conservation based on a potential drought were factored into the estimates. She explained it is in part because the budget was completed before the State and Zone 7 came out with conservation requests and noted staff will make any appropriate adjustments at mid-year. She advised if conservation becomes mandatory. staff would come to City Council to discuss potential drought rates. Director of Finance Olson clarified the increase in Zone 7 costs is partly because the City will be putting wells out of service for PFAS and buying more water from Zone 7. In response to Councilmember Testa's inquiries, Director of Finance Olson clarified the Rainy Day Fund helps balance the budget. She noted it is an additional reserve not specific to pensions but to be used for deficits the City will have to recover. City Manager Fialho clarified it is a 10-year forecast subject to revenue fluctuation and unknown future expenditures. Director of Finance Olson noted every two years City Council can choose another means of balancing the budget. In response to Councilmember Testa's inquiries, Director of Finance Olson explained the City will debt finance and possibly also grant finance the PFAS improvements along with rate increases. She advised those details will be brought to City Council at a later date. She clarified she does not know how SB 1383 would specifically increase rates. Councilmember Testa requested an itemized breakdown of how the federal recovery funds have been and will be used for the follow-up discussion. Director of Finance Olson clarified there is nothing budgeted in the future beyond the $8.5 million. In response to Councilmember Arkin's inquiries, Director of Finance Olson clarified the $400,000 in the General Fund's contingency is for the PPD's new mental health-driven crisis response initiatives. She advised allocations such as operational expenses, staff expenses, or contractual services will be determined later. She confirmed it does not initially go to the PPD's operating budget. Councilmember Arkin echoed Councilmember Testa's call for a breakdown of recovery fund usages for both her knowledge and public transparency. Director of Finance Olson clarified the $8.5 million is operating revenue which can be used for General Fund expenses. In response to Councilmember Testa's inquiries, Director of Finance Olson clarified the American Rescue Plan allows a City to pay for General Fund expenses if it can demonstrate lost revenue greater than or equal to the allocation. She advised the City has been allocated $8.5 million while the federal methodology reflects $12 million in pandemic-related revenue losses. She explained this allows the City to use it as a back-filling source for the entire General Fund. She further explained the $8.5 million is based on the City's Community Development Block Grant (CDBG) formula which looks at population below-median income and the age of the housing stock. City Council Minutes Page 8 of 10 June 1, 2021