CC MIN 06212022 - Laserfiche WebLink

In response to Councilmember Testa, Interim Director of Finance Shah confirmed the City will get an increased portion of gas tax when it is raised by the State but she could not confirm how much. City Manager Beaudin stated larger decisions are typically reserved for the two-year budget process which includes a five-year look at the CIP. He noted the Mid-Term Budget is a healthy one with a good reserve because of the pre-planning that occurred. He advised the next five years will bring pension challenges and other issues including ones mentioned by Councilmember Balch. He stated staff's recommendation is to not use the reserve, but added staff did provide an alternative because they are at the high end of the reserve. In response to Councilmember Testa, Interim Director of Finance Shah stated the City is expecting an increase of$1.6 million in Property Tax in FY 22/23. In response to Councilmember Testa, City Manager Beaudin clarified they cannot fully fund the CIP projects tonight without a dramatic shift as there are a lot of CIP projects not on the list and staff is providing an alternative where the reserve shifts by less than 1%. Councilmember Testa stated the requests from the community for a new skatepark have been coming for years and added the Council wants to be responsive to them. She stated they are not being fiscally irresponsible. In response to Councilmember Testa, Interim Director of Finance Shah confirmed the Rainy Day Fund was set up with the understanding the money would be used for capital projects if it is not needed for the pandemic. Councilmember Arkin stated she does not disagree with many of the comments about the substitute motion. She stated they are facing uncertain times but added a maximum 30% reserve is fiscally prudent. She noted the difference between a reserve of 30.7% and 30% is not a huge difference in the name of honoring a commitment made to the community with a project also on the Council's high priority list. In response to Mayor Brown, Interim Director of Finance Shah confirmed the City received its second payment of American Rescue Plan Act funds on June 7. She confirmed it is incorporated in the FY 22/23 budget. Mayor Brown stated that Pleasanton has always been known to be fiscally conservative and sound with a 30% maximum. She noted Mr. Lambert's earlier point the skatepark dates back to a 2014 Master Plan and the City is far behind schedule in building the community amenity. She noted the City is still only partially funding it even with an additional $1 million allocation and added the $1 million will still be held in reserve. She added the City is careful in its finances and always receives excellent ratings from auditors. She expressed support for the main motion. Councilmember Narum clarified the 2014 Master Plan called for a skatepark but noted there are other long-term projects still not completed such as the Lions Wayside Park bandstand and other improvements to the park. She stated they have to look at prioritizing the five-year CIP and noted there are always unexpected issues such as the new generator and fire alarms none of them knew about until it appeared in the May 31 workshop. She requested a more comprehensive look at prioritizing the CIP so they know how to keep things operating safely. She expressed discomfort with making this budgetary change mid-term and putting the skatepark amenity ahead of health and safety infrastructure. Mayor Brown stated the City has a Sewer Enterprise Fund, a Water Enterprise Fund, and separate line items for roads and other maintenance. In response to Councilmember Arkin, Mayor Brown confirmed Lions Wayside Park was not included on the list of CIP projects to be funded in FY 22/23. City Council Minutes Page 10 of 18 June 21,2022