pages: CityCouncil/2009-06-02.pdf, 2
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CityCouncil | 2009-06-02 | 2 | City. The Interim City Manager stated the proposed resolution states that cities would experience financial hardships if the State proceeds with borrowing any money from local government. the proposed resolution expresses solidarity in opposing the State wanting to balance its budget and float more cash by borrowing from cities; the City has worked very hard and has made some difficult decisions to balance the budget the City would lose $2.4 million in Fiscal Year 2009-2010; the City experienced a 10% reduction in force; one way to deal with the $2.4 million loss is to use cash reserves in the Equipment Replacement fund with the hope that the State would pay the money back in thirty-six months; the City would need to make changes if the State chooses to increase the amount. The Deputy City Manager stated the Governor had a briefing today with the Legislature; the State budget deficit is up to approximately $24 billion; the State is cutting $3. 1 billion for the current Fiscal Year and is proposing to cut approximately $20.845 billion for Fiscal Year 2009-2010; the loan would be a one- time take for Fiscal Year 2009-2010; nothing has been programmed in for Fiscal Year 2010-2011; under Proposition 1A, the State is required to pay back the loan with interest within three years cuts are being proposed for Health and Welfare programs, In-Home Supportive Services, K-12 education, community colleges, and the U.C. system; prisoners may be released early if they are within six months to a year of the release date; approximately 5,000 State workers will be laid off; that she and Councilmembers Gilmore and Tam will be going to Sacrament tomorrow to plead the City's case. Vice Mayor deHaan requested an explanation of Proposition 1A. The Deputy City Manager stated Proposition 1A was passed by State voters in 2004 and allows the State to borrow from cities, counties, and special districts twice within a ten-year period; the State needs to pay back the first borrowing with interest before borrowing the second time; the first borrowing was paid back early in order to have an opportunity to borrow again; there is some debate about whether redevelopment funds can be included; the California Redevelopment Association is in the process of fighting a legal battle with the State over the matter; the California Redevelopment Association won the first round and the State is appealing. Speaker David Howard, Alameda. Councilmember Gilmore moved adoption of the resolution. Regular Meeting Alameda City Council 2 June 2, 2009 | CityCouncil/2009-06-02.pdf |