65A - MATER DEI UPDATE - Laserfiche WebLink

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Mater Dei May 17, 2016 Page 5 • However the City of Santa Ana has identified significant needs in the areas of Public Safety ($3.3 million) and Economic Development ($3 million), and the City has not yet added back Police Officers reduced during the recession. b. Fund the Mater Dei Appendix request via an Amended Development Agreement, in a not to exceed amount of $2.5 million, from the General Fund Reserve. (requires super majority vote) • This action would require a reduction to the City's General Fund Reserve balance. Currently the City has a General Fund balance target of 20 %. Although staff would recommend assigning the corresponding amount in the reserve, the General Fund Reserve would be reduced. In order to continue to meet the General Fund Reserve target, staff would need to reduce and /or cut programs and services. The reserve could be left at the lower amount, however it is not recommended as the recent AA general credit rating by Standard & Poors included the 20% reserve level. The City Council would need to authorize such a reduction of the General Fund Reserve Fund. c. Consider the Mater Dei funding request in conjunction with other budget priorities during the FY 16 -17 Budget. There would be no funding commitment; subsequent budget decisions should be done in the context of the budget process included with other City needs. • There would be no immediate fiscal impact by this action. Funding would be evaluated at a future date. • While this option does not provide certainity to Mater Dei, the option allows the City of Santa Ana to make a funding decision during the budget process. This is especially significant in that FY 16 -17 is a year involving new labor and management negotiations. Staff recommends option C. This provides the City with the ability to make funding considerations in the context of priorities throughout the City. 65A -5