pages: CityCouncil/2011-02-01.pdf, 11
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CityCouncil | 2011-02-01 | 11 | Speaker: Kevin Kearney, City Auditor. Councilmember/Board Member/Commissioner Tam inquired how the City is paying down the Other Post Employment Benefit (OPEB) liability. The Controller responded the City is taking the "pay as you go" approach; stated Fiscal Year 2009-2010 payments totaled approximately $2 million. Councilmember/Board Member/Commissioner Tam stated the City has a significant [General Fund] fund balance; inquired whether the fund balance could be used to pay the OPEB liability. The Controller responded the General Fund can be used for anything; stated the unrestricted reserve is approximately $15 million which is approximately 20% of the budget; Council might want to consider beefing up the set aside reserves in the Internal Service Funds; the funds could be used to pay down some of the OPEB liability. Mayor/Chair Gilmore stated the General Fund reserve balance has gone up because maintenance projects have stopped; two years ago, the General Fund balance was $6 million; the balance has more than doubled in two years; questioned how the increase happened in the middle of the worst depression since the 1930's; stated property transfer tax and sales tax revenues have gone down; the Planning and Building Department's salary savings should have been a net neutral. The Controller responded that he would research [the reason for the increase in the General Fund] and come back to Council. Councilmember/Board Member/Commissioner deHaan inquired how deferred maintenance is addressed in the Comprehensive Annual Financial Report (CAFR); stated deferred maintenance totals $79 million. The Controller responded Governmental Accounting Standard Board 34 has changed how financials are presented; stated cities need to perform a complete infrastructure inventory; the City took an estimated cost approach to determine the useful life on various types of infrastructure and assets; page 45 has a line for enterprise activity related to ferry services, the Golf Course, and Sewer Fund; depreciation should be funded at a bare minimum in order to keep operation levels the same. Councilmember/Board Member/Commissioner deHaan stated the Fiscal Sustainability Committee came up with a $79 million figure [for deferred maintenance]; that he does not see the amount referenced in the report; inquired whether reporting is required. The Controller responded depreciation could be reported in two ways: as an estimated cost or modified approach. Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, Community 2 Improvement Commission, and Housing Authority Board of Commissioners February 1, 2011 | CityCouncil/2011-02-01.pdf |