2017-05-15 ECONOMIC DEVELOPMENT, INFRASTRUCTURE , BUDGET & TECHNOLOGY

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2/3 vote of the City Council. Authorization to utilize Economic Uncertainty reserve beyond two consecutive years is strictly prohibited. Current policy states general fund year-end operation balance can be considered for term specific operational or capital needs for one-time items. Policy does not include fund balance categories or definitions or calculation of operation balance. Would like to have policy expanded to include these and any other committee suggestions. Reserve level options: 1) Status Quo — Maintain 20% operating reserve level, to maintain rating; 2) Adjust the current reserve level to 2 months of operations (16.67% - GFOA Recommendation); 3) Establish reserve level at 15% (in compliance with policy); 4) City Council establishes new reserve level. Robert Cortez added: other alternative is to give direction to revise policy to state between 2 months of operation but up to 20%, that way when you do budget at a minimum we'll have 2 months' worth of reserve. If below the 20%; you're still within the policy and would solve rating issue. Intent is to protect reserves. Language can be modified to show up to 20%. Use of One-time monies options: 1) Status Quo — can only be used to match one- time non-recurring expenditures, term specific projects and programs, as well as capital expenditures; 2) to offset structural deficits for a two-year period only (Economic Uncertainty remains the same); 3) City Council exercises 100% full discretion and includes the use of one-time monies to balance structural deficits, requires 2/3 vote by the City Council (Economic Uncertainty remains the same). Councilmember Sarmiento suggests separating policies (budget vs. reserves) for clarity for council and public. For operating reserves, language for declaration of fiscal crisis if not already existing, might be considered to include in policy. Draft budget will be presented at May 16th City Council Meeting. Actual budget will be on June 6th City Council Meeting. Options will be listed for council to select. 7. Jail Cost Review and Structure {Strategic Plan No. 1, 3} - (PD) Christina Holland, Jail Administrator, provided overview of Type I and Type II jail models. City currently operates a Type II jail facility, primarily for pre-trial and sentenced inmates, Santa Ana Jail contract partners provide inmates, no local arrests remain in our custody. Type II requires comprehensive medical services, food services, law library, education and religious programs. Type I Jail Facility is intended for pre-arraignment felony/misdemeanor offenders held for 48-72 hours and are provided meals, uniforms, bedding and hygiene supplies as they do stay overnight. Temporary holding facility is more for our local arrests who are being released to county on same day of arrival. Held for 4-6 hours for booking or until they are sober May 15, 2017 I Economic Development, Infrastructure, Budget & Technology Minutes 6