10A - MINUTES - 05-21-2012 - Laserfiche WebLink

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• State deficit increased to approximately $16 Billion • State focusing attention on redistributing Redevelopment/Housing Assets • Economic Uncertainties • End of Deferrals (6/30/13) • Rising Pension Costs • Managing Expenditures (i.e. filling vacancies) Dissolution of Redevelopment • CDA reduced its Redevelopment full-time count by 82% through the elimination of vacancies and reallocation of positions into other funding sources • City Successor Agency expected to receive minimal administrative and project cost funds during wind down period • General Fund will provide $550K to subsidize the following: ¦ Maintain current NIP staffing/service levels ¦ Minimal funding for new. Economic Dev./Redevelopment efforts • Unknown Impacts: ¦ County and State DOF Redevelopment audit Defining the Fiscal Tsunami (FY2008-09 to FY2010-11) • Worst Economic Decline Since The Great Depression Unemployment Rate 15.5% 7.1% (Jan 2010) (Jan 2008) Assessed Valuation $21.9 Billion $19.8 Billion (Fiscal Year) (FYOM) (FY10-11) What was the impact to our City Significant Declines in Major Revenue Sources • Sales Tax revenues decline by 26% (approx. $12M from FY07-08 to FY09-10) • Property Tax revenues declined by 11.5% (approx. $6.7M from FY07-08 to FY10-11) State Budget Impacts • State Takeaways (i.e. Property Taxes and RDA) • Loss of Motor Vehicle License Revenues ($1.2M) Pre-negotiated Salary/Benefit Contractual Obligations Rising Pension Contribution Rates Surviving the Fiscal Tsunami (FY2008-09 to FY2011-12) • Labor Concessions • Negotiations during closed contracts • Use of One-time Funds and Reserves • Reductions in Staffing Levels • Managing vacancies • Outsourcing & Reorganization CITY COUNCIL MINUTES 12 MAY 21, 2012 1 0A-12