pages: CityCouncil/2021-03-02.pdf, 6
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2021-03-02 | 6 | The City Manager stated last March, economic matters related to COVID-19 were discussed with Council; there were uncertainties related to the budget and conservative yearend projections were provided; noted an $11 million surplus had been reported due to an excess in projections; the $2 million deficit shown is due to budgeting conservatively; the actual budget is likely to have less deficit. The Senior Management Analyst briefly presented calculations. Councilmember Knox White stated the policy sets aside an amount over the reserve; half is used toward paying off costs that must be paid; paying pension costs now saves millions of dollars per year, which can go toward ongoing budget needs; previous Councils did not provide adequate pension payments and the current Council is currently stuck paying the unfunded pension liabilities over the next 30 years; Council has tried to lower the impact on the budget; outlined upcoming budget workshop sessions; noted the timing appears weird; stated the matter is a backward looking discussion. Councilmember Knox White moved approval of the staff recommendation [adoption of the resolutions], with the City Manager's recommendation that Council hold a second vote once the real numbers are known on the pension pay down. Vice Mayor Vella expressed concern about taking a fiscally irresponsible stance; stated the reason a surplus exists is due to thoughtful budgeting and priorities; a pandemic is not the time to consider cutting emergency services; the [unfunded liability] costs are not going away; the more that can be paid down earlier, the more that will be saved in the long-run; changing the policy is a one-off; the policy has been adopted by Council and should be agendized separately in order to be changed; the impact of Federal aid is still unknown; expressed support for the proposed budget recommendation; stated Council will be making budget and priority decisions and budgets can be amended when needed. Mayor Ezzy Ashcraft stated that she is excited projections were higher than anticipated; questioned whether transient occupancy taxes (TOT) will increase; outlined the origin of the [unfunded liability] formula; stated the City has already saved millions on finance charges for the balance owed; expressed support for the current formula; noted the policy may return for Council consideration; outlined staff's recommendation to contract with a firm that will help build a financial model; stated a deeper dive will be taken into what is needed to manage the pension and OPEB obligations; the actions taken thus far have been smart; noted the Block by Block program has been successful; stated that she would like the City Manager to recommend additional funding in order to continue the Block by Block program. Councilmember Daysog stated the budget information has been provided in an open and easily understood manner; noted that his lack of support is not due to information provided by staff; stated roughly $35 million has gone toward unfunded liabilities over the past four years; the choice is not between spending zero dollars or $35 million; Regular Meeting Alameda City Council March 2, 2021 5 | CityCouncil/2021-03-02.pdf |