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• State Budget Impacts (May Revise) <br />• 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) (FYOS-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 FY10-11) <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 />CITY COUNCIL MINUTES 12 MAY 21, 2012