pages: CityCouncil/2009-06-02.pdf, 5
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CityCouncil | 2009-06-02 | 5 | Mayor Johnson requested clarification of the cash reserve amount. The Interim City Manager stated $6.8 million is real, unencumbered net money in the cash reserve. The City Treasurer continued the presentation. Councilmember Matarrese inquired whether the cash reserve includes the $1.1 million that the State Board of Equalization says that the City owes back, to which the Interim City Manager responded in the negative. The City Treasurer stated the $1. 1 million is reflected in the forecast but is not reflected in the cash balance. Councilmember Tam stated having a 25% reserve policy becomes less meaningful when the City has a 9% reserve; inquired whether the Committee recommended a reserve level. The City Treasurer responded the Committee did not poll reserve levels of other cities; stated the Interim City Manager has a wealth of experience in terms of good reserve levels; the City has a stable revenue base. revenues are not fluctuating as much as other cities; the 25% reserve level was determined in the past and can be adjusted; the amount should be particular to Alameda and should be much higher than the current level. Mayor Johnson stated there needs to be rules on how reserves are counted; a prior City Manager counted a 23%-25% reserve which accumulated through deferred maintenance and ended up costing more money in the end; deferring maintenance is no way to accumulate reserves. Vice Mayor deHaan stated the City had approximately $20 million in reserves between 2004 to 2005. reserves have been drawn down. Mayor Johnson stated deferred maintenance allowed for the accumulation of the $20 million. Councilmember Tam stated the $20 million was not really cash. Mayor Johnson stated much of the $20 million was a fake reserve; that she wants to have a real reserve, even if smaller. The City Treasurer continued with the presentation. In response to Vice Mayor deHaan's inquiry about vehicles, Ms. Zuppan, Committee Member, stated 173 vehicles and equipment are Regular Meeting Alameda City Council 5 June 2, 2009 | CityCouncil/2009-06-02.pdf |