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Please do not limit staff in providing a feasibility study on issuing Pension Obligation Bonds. This implies that you are not interested in other options. Please direct staff to provide studies for all options including negotiating with the City's bargaining units and overall pension reform options. Please read some of the smaller nuances of the staff report which may or may not be explicitly stated including: o One time budget fixes will not be enough to solve the budget deficit we will be experiencing o The combined $27M drop in revenue for FY 19/20 and 20/21 may very well be $50M+when all is said and done according to respected economic research (UCLA/Fitch). Now this $50M likely includes the $15M FY 21/22 property tax drop but the $27M is likely the floor for the drop and not the ceiling. Prepare for the worse now while praying for the best. There is a big difference between $50M+ and $27M revenue losses when preparing budgets and creating contingency plans. Please listen to what staff is telling you both explicitly and implicitly. To me, they are hinting that we need long term budget solutions. o Property taxes will likely decrease by around $15M for FY 21/22... this problem is not going away anytime soon so we need to make some systemic changes for the longer term. o CalPERS pension obligations are going to skyrocket based upon current compensation but even more so because of CalPERS investment experience late. This will have MAJOR impact in the future and as such we need to look at ways to reform the city's pension obligations now and not wait any further. 65AW: Receive and file report relating to updated FY 2019-20 General Fund revenue estimates. Generally, receive and file reports do not receive any feedback from council. They are essentially administrative in nature. Literally, we received it, we will archive it, thanks, next item. There generally are no questions asked, no comments given, or clarifications sought. Make no doubt about it. This "receive and file" agenda item is much more than just receiving and filing it. Council and the public needs to fully understand the gravity of the situation that we find ourselves under. The Finance Team is highlighting things before you which I can only hope that they are doing as much so that you can see the situation. They have done this with other "receive and file" items but again, it has been literally a "receive and file". Maybe even part of the situation we are in is because of the receive and file scenarios instead of discussing items that the Finance Team is highlighting for you. So first, I hope that you do more than just "receive and file" the updated revenue estimates. Please ask questions, understand it. Maybe if you understand it already, be the council member who asks a question because they know that the public may not understand it and there is a need for the public to know. The public has a right to understand the fiscal situation that the city is in because of the COVIDI9 impact. They need to understand that the City is now expecting to have $12.35M less revenue in the current fiscal year ending June 30, 2020 than was budgeted for. They also need to know that the projected 20/21 revenue will be $15M less than our current year budget. As importantly, it appears that these shortfalls may very well be on the rosy side of the spectrum and that things may be quite a bit worse. This is important to understand the projections, and I direct you to the 2nd full paragraph of page 2 of your Staff Report which in part reads "If UCLA Anderson Forecast and Fitch Ratings are both correct the City could lose $50+ million of revenue by the end of 2020." So, despite the chart showing the revenue sources that the city believe is most impacted, if both UCLA and Fitch are correct the impact on the city will be $50M instead of $27M by the end of the year. However, it is very possible that this $50M figure also includes the $15M property tax reduction which will impact FY21/22, but regardless, the $27M combined impact should likely be viewed as a floor to the reduced revenue and not a ceiling. Additionally, it is important to note that this is not a quick turnaround due to the trailing revenue reductions that likely will happen. Additionally, notice that the staff report indicates that "As the City receives more information, the projection may worsen and revised estimates will be prepared for City Council consideration." To me, this language is setting the stage for additional revised downward projections. The staff is letting you know, or at least hinting, that things may get worse