CCMIN022004 - Laserfiche WebLink

G/ven the financial crisis at the State level, Mr. Campbell asked staffifthey were nervous about the City's budget. Ms. Rossi believed the State's financial situation was worse than it was in the early 1990's. She believed, however, the percentage hit that the City took in the early 1990's will be much greater than what is currently being considered. Mr. Campbell asked when staffwould consider accessing the funds in the temporary reserve? Ms. Rossi mentioned that a temporary recession reserve was implemented in the early 1990's. Staff did not have to access the temporary reserve at that time and waited until the economy began to cover, which was a two-year period. In order to get through that period of time, staff reduced the replacement funding. Staff then put more money back into the replacement fund with the bulk of the money going to the Capital Improvement Program. She was hopeful that the City would go through this same process. Mr. Brozosky seemed to believe that the City was getting its backfill portion of the Vehicle License Fees (VLF). He asked for the amount that the City was going to lose, as he was trying to compare it to what the City could be losing fi.om the ERAF shift. If the City had potentially lost the entire VLF backfill, Ms. Rossi reported that the amount lost would have been $2.5 million dollars. Staffhas projected this year to lose about $900,000, which was during the gap period when the State did not provide the VLF backfill. The City also lost additional items from the State this year, which combined, totaled about a million and half dollars. She pointed out that the Governor's current proposal is about the same for next year as what the City has lost this year in total. Ms. McKeehan provided confirmation that the City would use the temporary reserve fund as a last resort. If the funds were not used, they would be transferred over to the Capital Improvement Program. Ms. Ayala mentioned that it would be helpful for her to have information available with the mid-year budget report that allow her the opportunity to respond to what is being considered at the State level. She would like the information to entail where the City has increased spending, where revenue has been decreased, and suggestions for decreases in spending. Vice Mayor Ayala opened and closed the public hearing. Pleasanton City Council 28 01/20/04 Minutes