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Mr. Sullivan asked if the five-year General Fund forecast on pages E-18 and E- <br />19 included the costs of health insurance and ratiree health? <br /> <br /> Ms. Rossi said yes and noted that the City has assumed the same higher rate <br />throughout the five-year projection. It is not anticipated that the higher rate will be <br />continued given the types of smoothing that PERS is planning. The City anticipates that <br />the rates will decrease, but to be conservative in this model, the City has used a higher <br />rate. <br /> <br /> Mr. Sullivan said going forward in these next five years; the City is planning to <br />fully fund PERS using this strategy, which will include the catch up of the retiree health. <br /> <br /> Ms. Rossi said the strategy also includes a gradual increase every year to catch <br />up and pay off the liability. <br /> <br /> Mr. Fialho stated that assuming revenues continue to climb at moderate levels <br />and expenditures continue to rise at existing levels, the City will be in balance at the end <br />of five years. The issue related to the long-term fiscal analysis is something the City <br />needs to go through since it has not been gone through this for some time, and it will be <br />a good exercise to identify where there are opportunities to reduce expenditures and <br />increase revenues. <br /> <br /> Ms. McGovern wanted to review pages B8 and B9. She asked if the two charts <br />reflected that the City would only be spending $157 million. <br /> <br /> Ms. Rossi stated that was correct, and it is part of the City's long-term plan as the <br />City is accumulating reserves for future expenditures. She said the numbers are <br />distorted because it includes the internal service funds. <br /> <br /> Ms. McGovern asked about available funding for additional affordable housing <br />and if the amount reflected on the Iow-income housing fee is correct at $12 million <br />dollars. <br /> <br /> Ms. Rossi said the number the City has currently projected to have at the end of <br />this year is $10 million dollars, and some of that is already designated to be used for <br />specific purposes, such as the loan that was provided to BRIDGE Housing. <br /> <br /> Mr. Brozosky questioned information on pages 2 and 3 of the budget under <br />Workers Compensation. He noted that the fund had a downward trend and wondered if <br />that was a problem for the City. <br /> <br /> Ms. Rossi responded by saying she would like to see the numbers increase but <br />the fund balance is more than adequate for what the City needs in the short-term; <br />however, it is something that needs to be watched. <br /> <br /> Mr. Brozosky questioned the special revenue, recycling and waste management <br />funds and wondered if the City needed to start looking into these expenditures. He <br />asked if the City would have to eliminate these programs or fund them internally in the <br />next two years. <br /> <br />City Council Workshop <br /> 11 06/08/05 <br /> <br /> <br />