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x57 6:ilkMayor Bill Rhodes MINUTES Vice Mayor Bob Norris Redwood Ili CITY COUNC I L Councilmen '1 Ohl 110111011110 Mill FD E MA MB/ Mario Biagi Veterans Memorial Building Robert H. Bury 1;iiiiiii7 1455 Madison Gerald R. Chandler Marguerite Leipzig BUDGET STUDY SESSION Wm.J. Stange) [:: February 23, 1980 8:30 a.m. Adjourned Meeting - Mid-Year Budget Review The Council of the City of Redwood City met on this date at 8:35 a.m. with Mayor Rhodes presiding. Councilmen present: Biagi , Bury (arrived at 8:45 a.m. ) , Chandler, Leipzig, Stangel (arrived at 9:05 a.m. ) and Mayor Rhodes Councilmen absent: Norris Officials and staff present: City Manager Fales, City Attorney Schricker, Director of Finance Ference, Assistant City Manager Smith, Director of Public Works Addiego, Planning Director Schroeter, Chief Building Official Malkemus, City Librarian Volimayer, Police Chief Bold, Fire Chief O'Brien, Personnel Director Brock, and Deputy City Clerk Reggetts. Mid-Year Budget Review •. City Manager Fales referred to the three reports provided earlier to Council ; i .e. , Mid-Year Status Report: Program Objectives for 1979- 1980, which he indicated was self-explanatory; Status of Capital Im- provement Funds and Estimated General Fund Available Balance, both dated February 20, 1980; and two reports distributed to Council this morning: Effect of Assembly Bill 8 Deflator and Proposition 4 on City Budget, dated February 21, 1980 from Mr. Ference, and a report by Senator Rodda, Chairman of the State Senate Finance Committee re- garding the preliminary status of the impact of Proposition 4 on the State. Effect of AB 8 Deflator and Proposition 4 on City Budget Director of Finance, 2/21/80 Mr. Fales reviewed the introductory paragraphs of the report, noting that it was important to understand what the "deflator clause" in Assembly Bill 8 is, and how it works. Mr. Ference, with the aid of a flip chart, explained the provisions of AB 8, that if the total State General Fund revenues falls below 20.6 billion dollars by more than 100 million dollars, State aid would be reduced by the deficiency amount, with 50% to be borne by school districts and 50% by cities, counties and special districts. The State Legislature may waive the reduction by adoption of a concurrent resolution on or before June 30, prior to the year the reduction is to take effect. In future years "". the base figure of 20.6 billion dollars is to be adjusted by a change in the California Consumer Price Index and population change; however, • Ir.r Mr. Fales noted that the CPI has not been defined, and population figures have not been determined. Mr. Fales and Mr. Ference commented on the effect of the deflator clause on Redwood City, under a loss factor of . 131% of the total local government loss, which would amount Adj .Mtg. 2/23/80 Budget