CCMIN121608 - Laserfiche WebLink

Ayes: Councilmembers Cook-Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: None The City Council thanked Jim Wolfe for his 11 years of service with parks, recreation, sports, and his commitment to the City of Pleasanton, the community, and they wished him well in his retirement on December 31, 2008. BREAK Mayor Hosterman called for a brief break and thereafter reconvened the regular meeting. Mayor Hosterman announced that Item 18 was removed from the agenda at the request of the appellant. 17. Review Fiscal Year 2007-08 Year-End Financial Reports a) Adopt a resolution amending the Fiscal Year 2007-08 Operating Budget b) Adopt a resolution amending the Fiscal Year 2007-08 Capital Improvement Program Finance Director Dave Culver gave the staff report, stating the report is a look back in history and reflects minor clean-up actions, it reflects both the Operating and CIP budgets, and he reviewed major highlights of the budget, which he said was contained in the staff report. Mr. Culver discussed the General Fund revenues and expenditures, requested approval of carry over of unspent contingencies and the remaining $1.8 million is being requested to be added to the $6.1 million temporary recession reserve. He further discussed property tax, sales tax, hotel/motel tax, business license tax, and building permits which were all down except for property tax. He described the water enterprise fund budget and said there was a variance on revenues due to non-action of a rate increase, sewer enterprise fund showing a positive variance of $100,000 more than budgeted and expenditure spending less than budgeted. He detailed the golf operations fund which brought in $100,000 more than expected, and spent $100,000 less. The categories in the CIP include streets, parks, miscellaneous, water and sewer and there was a favorable outcome in all categories, resulting in fund balances increasing. This is due to interest income of 4.7% instead of 4% and developer fees. There is a balance of $4.7 million in the CIP. Next steps include staff analyzing its financial position, refining revenue estimates and expenditure forecasts, developing strategies with the executive team and managers, and staff will return on January 20, 2009 and present amid-year budget update. Councilmember Thorne emphasized that the picture reflects the status from June and things have changed since then. Councilmember Sullivan asked the City Manager to discuss strategy development and items which may be developed. Mr. Fialho said staff does this every year, they review revenue and expenditure trends, they are seeing a slowdown and concepts shared include requesting departments cut a percentage from their operating budget, put forward a strategy to, review vacancies on a case-by-case basis, reduce contributions to the replacement fund, will suggest that we call back the one-time CIP contribution of $3 million and put it into the temporary City Council Minutes Page 14 of 15 December 16, 2008