pages: CityCouncil/2022-04-05.pdf, 22
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CityCouncil | 2022-04-05 | 22 | opportunities to address homelessness, which is a priority; addressing homelessness takes time to ramp up; staff will be looking to the State and county for continued support. Councilmember Herrera Spencer inquired whether the obligations from the grant will force the City to continue to pay for the project using General Fund money, which may result in cuts to City staff and services. The Assistant City Manager responded there are some challenging years in the upcoming five year forecast; stated beyond the next five years, City revenues continue to grow with expenses likely to be contained; the City's finances look relatively strong based on revenue expectations; the City will be able to meet needs across the board depending on future priorities and allocation of resources; the goal is for the City not to struggle financially in the future; pension issues will create financial strain if not addressed with strong revenues. Councilmember Herrera Spencer inquired whether there will be a legal obligation attached to accepting grant funds which creates a contract and the contract will be separate from any additional Council desires regarding expenditures. The City Attorney responded the City will be committing to 20 years of operations. Councilmember Herrera Spencer questioned whether the commitment is similar to a contract, where the City will have to perform. The City Attorney stated the City has a greater commitment towards contractual obligations rather than non-contractual obligations. Councilmember Herrera Spencer expressed concern over the contractual obligation; stated if grant funding is not available for the project, the City will have to use General Fund money to keep the transitional housing operating; the program will end up being a forced priority of expenditure from the General Fund; there is uncertainty; stating that the City will have great financials for the next 20 years is untrue; expressed concern about the transitional housing obligation needing to be funded ahead of other City staff and services. Councilmember Knox White stated that he is comfortable in the City's ability to find funding for the program moving forward through grants and the General Fund. Councilmember Knox White moved approval of the staff recommendation [including adoption of the resolutions]. Vice Mayor Vella seconded the motion. Under discussion, Councilmember Herrera Spencer stated that she previously supported the project; she did not expect the project to circle back so soon without sufficient funds; the project will become a priority obligation for the City to fund; 20 years is a long time to agree to use General Fund money ahead of other things; she will not be able to support the matter. Councilmember Daysog stated the project is necessary; ARPA and State funds are paying for the project's capital costs; there is no doubt that ongoing operational costs will be needed; the housing crisis will not go away anytime soon; the project is a vital service for Alameda; the City will face fiscal challenges due to a tightly wound economy; the City will have to decide to tighten Regular Meeting Alameda City Council April 5, 2022 | CityCouncil/2022-04-05.pdf |