CITY COUNCIL WORKSHOP MEETING AGENDA PACKET

Page 4 of 5 Alternatively, the City Council could consider one-time options, such as using more reserves; however, this option is not financially sustainable and could make the City vulnerable to future crises, as reserves are already at the minimum amount recommended. It is also critical to note that the structural deficit will not self-correct over time, such that even with new revenue, some adjustments will likely have to be made to program and services. Attachment A shows the General Fund Citywide Contingency Menu of Potential Service Reductions. These proposed reductions were developed with input and analysis from every City department. Budget reduction strategies include the following: • Reduce Parks, Trees, and Landscape Maintenance • Reduce Streets and Facilities Maintenance • Reduce Library Services • Reduce Community Programming, Youth and Senior Programs, and Special Events • Reduce Plan Checking and Traffic Management Programs • Reduce Sustainability Programming/Services • Reduce Funding to Community Programs • Reduce Economic Development Services • Eliminate City-Funded School Crossing Guard Program • Reduce Police Services • Reduce Fire Services • Reduce Critical Internal Service Functions Actuarial Analysis Regarding the Use of Section 115 Pension Trust Funds To understand the most prudent and effective use of the City’s Section 115 Pension Trust funds, the City engaged an actuarial consultant, Foster & Foster, to develop scenarios for City Council consideration. The results will be presented to the City Council at its May 21, 2024 regular meeting. It should be noted that the use of pension trust funds will lower the overall funded status for the City’s pension plans. The City’s current funded status is in line with the state average when accounting for pension trust funds; without the pension trust funds, the City’s funding ratio is below state average. According to the City’s investment manager and actuarial consultant, they are not aware of any agencies that are withdrawing funds from their pension trust accounts since many agencies are still trying to build up the funds. While it is appropriate to use one-time funds to help balance the budget as a long-term solution is being developed, ongoing use of one-time money is not recommended. EQUITY AND SUSTAINABILITY This item is for information only at this time. OUTREACH Over the last several months, the City has been engaging the community through various channels such as surveys, meetings, and newsletters to assess the viability of a sales tax measure. STRATEGIC PLAN ALIGNMENT This item aligns with the ONE Pleasanton strategic plan goal of Funding Our Future that supports financial health and sound fiscal policies. Page 6 of 10