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Ms. Rossi recommended proceeding with caution due to the continuing mixed <br />messages in the economy. <br /> <br /> Ms. Acosta was very proud that the City budget had been brought back into <br />balance. The budget had been out of balance by $1.5 million due to the unexpected <br />action by the State. She did not expect to add many employees as was done in the late <br />80's. Hopefully, small changes can be made. <br /> <br /> Ms. Michelotti was concerned that much of the savings were due to vacant <br />positions and delayed hirings. <br /> <br /> Ms. Acosta indicated there are significant personnel requests in the coming budget <br />and Council will have to determine what should be done. <br /> <br /> Mr. Tarver urged consideration of any funding requests in the context of the entire <br />budget. <br /> <br /> Mr. Pico referred to the increase in interest income and asked for staff comments <br />regarding the risks of the City's investments. <br /> <br /> Ms. Rossi indicated there are no investments in derivatives. Staff anticipated an <br />increase in interest rates and kept the portfolio short, which is why it was able to take <br />advantage of that. The portfolio also is in two-year Treasury bills and other conservative <br />investments. The cash flow is constantly monitored. There are also a few Certificates <br />of Deposits and other state and local agency investment funds. <br /> <br /> Ms. Acosta indicated the investments are based on safety, liquidity and yield. It <br />is possible to do better, but staff prefers to take a safer position. <br /> <br /> It was moved by Ms. Mohr, seconded by Ms. Michelotti, to adopt Resolution No. <br />95-34, approving the second quarter 1994-95 Financial Report and Midyear Review; <br />amending the Operating Budget, to reflect an increase in revenue projections by <br />$1,474,462 from $58,931,901 to $60,406,363; an increase in expenditure appropriations <br />by $202,994, from $54,803,056 to $55,006,050; and a net increase in transfers-out by <br />$208,734; and amending the Capital Improvement Budget, to reflect an increase in <br />revenue projections by $266,205, from $7,462,455 to $7,728,660; an increase in <br />expenditure appropriations by $229,705, from $21,022,188 to $21,251,893; and a net <br />increase in transfers-in by $210,000. <br /> <br />03/21/95 <br /> - 10- <br /> <br /> <br />