Workshop agenda packet - Laserfiche WebLink

Page 3 of 16 unexpected costs or shortfalls in revenue? • Debt Burden: How is the city’s level of debt compared to its income? • Cash Position/Liquidity: Is the city able to pay its bills in the coming fiscal year? • Revenue Trends: Is the city’s revenue going down over time? • Retirement Obligations: Does the city have the ability to pay for retirement benefits it committed to its employees? The SAO ranked more than 460 cities in the first four years and ranked more than 430 cities in the fifth year (fewer cities were included toward the end of this audit work due to reporting delays during the pandemic). Importantly, lower ranking means higher financial risk. As shown in the table below, the City’s financial conditions deteriorated over the years; Pleasanton’s financial stability ranking went from 150th for FY 2017/18 to 61st for FY 2020/21, or from the bottom 32% of California cities to the bottom 14%. Overall, Pleasanton ranked lower than the other four Tri-Valley cities. San Ramon had financial challenges, but through cost reductions and the recent voter approval of a 1% local sales tax increase in November 2024, it is in a much more stable financial position moving forward. Dublin and Livermore continue to be in a solid financial position with continued growth, and their investments in various areas, such as public infrastructure, help to improve the quality of life for their residents. Due to other priorities, the SAO stopped ranking cities after 2022, following the rating of cities’ FY 2020/21 financial reports. Infrastructure Needs and Asset Management Planning The City is also facing a significant infrastructure funding gap for maintaining and upgrading community assets such as streets, parks, and public facilities. The draft 10-year infrastructure plan, which is a high-level assessment of the City’s infrastructure needs, was presented to the City Council at its March 21, 2023, meeting (see the City Council Agenda Packet from March 21, 2023, at the link https://weblink.cityofpleasantonca.gov/WebLink/0/doc/305411/Page1.aspx). That plan showed a gap of approximately $900 million for both General Fund and Enterprise Funds over 10 years. In recognition of this urgent need, in October 2023 the City Council adopted the 5-year citywide ONE Pleasanton Strategic Plan, which included as a top City Council Priority strategy C.2. Investing in Our Environment - Develop an Asset Management Plan to address comprehensive long-term planning for maintenance, renovation, repair and/or replacement of the infrastructure and public facilities to meet current and future needs. Work on the Asset Management Plan has been underway since last year, and staff is preparing an update on the plan to the City Council in early 2025. Page 5 of 109