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• State deficit increased to approximately $16 Billion <br />• State focusing attention on redistributing Redevelopment /Housing <br />Assets <br />• Economic Uncertainties <br />• End of Deferrals (6/30/13) <br />• Rising Pension Costs <br />• Managing Expenditures (i.e. filling vacancies) <br />Dissolution of Redevelopment <br />• CDA reduced its Redevelopment full -time count by 82% through the <br />elimination of vacancies and reallocation of positions into other funding <br />sources <br />• City Successor Agency expected to receive minimal administrative and <br />project cost funds during wind down period <br />• General Fund will provide $550K to subsidize the following: <br />• Maintain current NIP staffing /service levels <br />• Minimal funding for new Economic Dev. /Redevelopment efforts <br />• Unknown Impacts: <br />■ County and State DOF Redevelopment audit <br />Defining the Fiscal Tsunami (FY2008 -09 to FY2010 -11) <br />• Worst Economic Decline Since The Great Depression <br />Unemployment Rate 15.5% 7.1% <br />(Jan 2010) (Jan 2008) <br />Assessed Valuation $21.9 Billion $19.8 Billion <br />(Fiscal Year) (FY08 -09) (FY10 -11) <br />What was the impact to our City <br />Significant Declines in Major Revenue Sources <br />• Sales Tax revenues decline by 26% (approx. $12M from FY07 -08 <br />to FY09 -10) <br />• Property Tax revenues declined by 11.5% (approx. $6.7M from <br />FY07 -08 to FYI 0-11) <br />State Budget Impacts <br />• State Takeaways (i.e. Property Taxes and RDA) <br />• Loss of Motor Vehicle License Revenues ($1.2M) <br />Pre - negotiated Salary /Benefit Contractual Obligations <br />Rising Pension Contribution Rates <br />Surviving the Fiscal Tsunami (FY2008 -09 to FY2011 -12) <br />• Labor Concessions <br />• Negotiations during closed contracts <br />• Use of One -time Funds and Reserves <br />• Reductions in Staffing Levels <br />• Managing vacancies <br />• Outsourcing & Reorganization <br />CITY COUNCIL MINUTES 12 MAY 21, 2012 <br />1 0A -12 <br />