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SUPPLEMENTAL MATERIAL <br />7 <br /> <br />CIP costs or any loss of assets, some changes in the appearance of <br />City parks may be noticeable by residents. <br /> <br />iv. Confirming that the cuts to TV30, Axis, etc. are NOT CUMULATIVE, 10% <br />in year 1, and that same amount of cut into year 2 (that is, 10% from FY <br />2024/25 level, not 10% more from FY 2025/26 level for FY 2026/27)? <br />Seems like savings amount increases in year 2 – why/how? <br /> <br />A. Yes, confirmed that funding reduction for TV30 is 10% in both years <br />and is not cumulative. The projected savings amount is higher in FY <br />2026/27 due to a step down in contribution to the Museum on Main <br />(from 10% reduction, or $25,650 savings in FY 2025/26 to 25% <br />reduction, or $37,630 savings in FY 2026/27). A total increase of <br />$20,000 in savings in this reduction category is due to rounding <br />($83,650 in FY 2025/26 and $95,630 in FY 2026/27). <br /> <br /> <br />9. Pg 34 – Please clarify the statement at the bottom that, as part of the budget, <br />we’ll not overfund OPEB by $1.0 M in year 1 and $1.1M in year 2. <br /> <br />A. Those amounts represent implied subsidies to the General Fund for retirees <br />continuing to utilize the City’s group health insurance plan. <br /> <br />The Proposed Budget includes reducing the OPEB contribution to the <br />Retirees Medical Fund by $0.7 million in FY 2025/26 and $1.4 million in FY <br />2026/27, for a total of $2.1 million. The General Fund’s share is approximately <br />$1.9 million or 90 percent. <br /> <br />This reduced contribution will be offset by withdrawing the same $2.1 million <br />from the City’s OPEB Trust over two years. <br /> <br />10. Pg 34 – Please clarify the statement at bottom that as part of the budget, we’ll <br />draw down the remaining rainy day fund reserve by $1.0M in year 1 and $2.0M in <br />year 2. This will then leave it at $500k (per top of Pg 35). <br /> <br />A. That is correct. The Proposed Budget includes using $1.0 million in FY <br />2025/26 and $2.0 million in FY 2026/27 from the Capital Reserve Fund (Rainy <br />Day Fund). With these drawdowns, the estimated fund balance at the end of <br />FY 2026/27 is approximately $0.5 million. <br /> <br />11. Pg 35 – Please clarify the statement at top and in the table that as part of the <br />budget, there is a transfer of $7.221M to CIP in Year 1 and $9.391M to CIP in <br />Year 2. <br /> <br />A. The $2 million for the Dolores Bengtson Aquatic Center (DBAC), Fire Station <br />2 and Bernal Fields are coming out of the first year $3 million CIP planned