pages: CityCouncil/2009-01-06.pdf, 7
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CityCouncil | 2009-01-06 | 7 | the Council has to decide the order of funding priorities as reserves are established; clear operating expense policies need to be established, such as using one time revenues for one time expenses and not for ongoing expenses however, there may be times when cash flow is needed that it [using one time revenues for operations) is appropriate. Vice Mayor deHaan stated the policies capture the discussion from the past four years; the policies are good fiscal management and will force information back so that Council can make the right decisions; many elements will have dollars and supporting data. Councilmember Tam stated the City has benefited from extremely conservative fiscal policies and has low debt with high reserves; in terms of prioritizing, she would like to understand soft versus hard earmarks in the fund balance and have a risk assessment done for example, the amount needed for workers compensation reserve should be determined; the City will have to use reserves to make up for CalPERS's 30% value drop; a risk assessment is needed for deferred maintenance to determine the amount that should be earmarked in a disciplined savings plan. Councilmember Gilmore stated capital projects and OPEB alone could completely wipe out the fund balance; the City has chosen not to spend or encumber funds, however, the entire amount [ fund balance) could be spent tomorrow on existing liabilities. The Interim Finance Director stated funds with a balance might have come from something like the gas tax, which cannot be spent on operating expenses the majority of the money is restricted; the General Fund is the only fund with flexibility. Mayor Johnson inquired whether a policy could be drafted on mid- year budget reductions stated how the current fiscal year budget was balanced is not understood; a list of bullet points were provided; specific numbers were requested. The Interim Finance Director responded $700,000 less in revenues is anticipated; the amount would be offset by a hiring freeze that creates a salary savings and holding off on contracts. Mayor Johnson stated numbers need to be put on the items so that Council knows where the savings come from. The Interim Finance Director stated the matter would be addressed February 3. Mayor Johnson stated a higher level of financial data is needed. Regular Meeting Alameda City Council 7 January 6, 2009 | CityCouncil/2009-01-06.pdf |