pages: CityCouncil/2009-01-06.pdf, 19
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2009-01-06 | 19 | Councilmember Gilmore stated one policy is that operating expenses and revenues should match; dipping into the reserve would be using one time money to cover on going expenses. Mayor Johnson stated everyone is concerned next year will be worse. Councilmember Gilmore stated the City does not know what the State is going to do. Mayor Johnson stated taking money out of reserve to fund something for a short period of time will not help next year, which is the sustainability issue in the budget policies the City has to live within its means. Councilmember Gilmore stated the three revenue reports that will be presented in February are needed in order to have an informed discussion about the amount of money the City has to spend. Mayor Johnson inquired whether staff is confident about the $700,000 figure. The Interim Finance Director responded the amount could be more, but probably not significantly more; staff is trying to do internal manipulations to prevent drastic cuts; positions are not being eliminated; things are not being unfunded; the budget is very tight and staff is working very hard not to use one dime out of the reserves this year knowing that the City faces a larger issue in the future; the dynamic for Fiscal Year 2009-10 changes if pre- funding OPEB has to be included in Police and Fire budgets. Councilmember Gilmore inquired whether the City would be stuck with its operating costs and have to look to the fund balance if the State decides to do the triple flip and issues an I.O.U. to the City. The Interim Finance Director responded in the affirmative. stated the fund balance would set the City into an equilibrium; service levels would be retained while waiting for cash to come from the State; cash poor cities would end up cutting drastically. Councilmember Gilmore stated the fund balance has to be taken care of until the unknown from the State becomes known; the City does not have a say and just has to deal with the State's decision. The Interim Finance Director stated the State punted the problem from last year to this year resolution is not being reached this year; the State cannot make payroll, which is a cash flow issue, and is debting to meet payroll. Regular Meeting Alameda City Council 19 January 6, 2009 | CityCouncil/2009-01-06.pdf |