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<br />CITY COUNCIL MEETING DATE: <br /> <br />~ <br />~ <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />JUNE 7, <br />TITLE: <br /> <br />2004 <br /> <br />~/ <br /> <br />CITY MANAGER <br /> <br />APPROVED <br /> <br />0 As Recommended <br />0 As Amended <br />0 Ordinance on 1 sl Reading <br />0 Ordinance on 2" Reading <br />0 Implementing Resolution <br />0 Set Public Hearing For <br /> <br />PUBLIC HEARING - FISCAL YEAR <br />2004-05 CITY BUDGET <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Adopt an ordinance appropriating <br />July 1, 2004. <br /> <br />monies <br /> <br />for the fiscal year commencing <br /> <br />DISCUSSION <br /> <br />The 2004-2005 fiscal year budget will enable the City to fulfill its <br />purpose of providing quality service to enhance the safety, livability <br />and prosperity of our community. In light of this purpose, this budget <br />emphasizes public safety, quality development standards, effective <br />community-driven code enforcement, and a positive partnership with the <br />business and educational communities as its external priorities; while <br />quality customer service and sound internal systems serve as internal <br />priorities. Given these objectives, the total annual proposed budget for <br />Fiscal Year 2004-2005 is $367,166,425. <br /> <br />The City continues to address the challenge of meeting demands that exceed <br />resources in a financial environment that has been dominated by the <br />actions of the State in two major areas: increasing retirement costs and <br />di verting local government revenues. Over the past two years, the poor <br />management of the investments of the state-run retirement system has <br />resul ted in significant unanticipated increases in costs to the City. <br />The direct impact of the recognition of these investment losses by the <br />State is an increase of $13.8 million in the General Fund for the 2004- <br />2005 fiscal year; an increase which is necessary in order to sustain the <br />financial viability of the City's retirement funds. As a comparison, the <br />actuarial prepared by the State in 2001 assured us that the projection of <br />surpluses in our accounts would support the retirement system without <br />requiring a contribution from the City to the fund for 67 years for the <br />general employees and 32 years for our safety employees. To ameliorate a <br />portion of the impact of this action by the State, the City has requested <br />a recalculation of the rate based on changes in the term of the payments <br /> <br />75A.1-1 <br />