AgdaPkt 2019-06-10 Joint SA PFA - Laserfiche WebLink

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9.A. - Page 2 of 17 • Approved local pension reform two years ahead of Statewide changes • Updated development fees to ensure full cost recovery for staff services • Recommended a half -cent sales tax increase which was approved by 68 percent of voters in November 2018, generating an estimated $8.7 million of additional revenue annually • Paid down pension liabilities by making additional direct payments to the California Public Employees Retirement System (CaIPERS) beyond the annual mandated amount owed • Opened a Section 115 Pension Trust account to pre -fund the City's pension obligations over time • Partnered with outside agencies to provide important community services in the most cost efficient way possible • Increased transparency regarding the City's financial health through an expanded annual budget document and increased public communications • Developed a Five -Year Capital Improvement Program With the intention of building on these strengths, staff have taken a number of recent steps to improve the City's budgeting and financial management process. Most notably, staff used the following strategies in developing the FY 2019-20 Recommended Budget: • Developed a Ten -Year General Fund Forecast for the first time to provide a long-term roadmap to financial sustainability • Analyzed and recommended an accelerated payoff timeframe for the City's pension obligations • Continued to focus on cost containment citywide by identifying numerous efficiencies, innovations, and partnerships • Streamlined the development of the Capital Improvement Program to provide a more realistic and financially viable projection of the City's capital needs and revenue sources In addition, the City Council's Finance/Audit Subcommittee has taken an active role in providing guidance and recommendations to staff and the City Council on strategic financial initiatives. This included helping staff develop a community Budget Workshop held in April 2019 to engage community members on the City's budget. The interactive workshop gave residents the opportunity to learn about City finances and suggest potential operational innovations and efficiencies, cost reductions, and new revenue sources. The Subcommittee also assessed opportunities to shorten the timeframe for paying off pension liabilities and recommends that staff study an 18 -year payoff period to reduce total interest payments, discussed further in the staff report. Moreover, as part of the continuous improvement efforts related to financial management, disclosure, and increasing transparency of the City's operations, the City Council has approved implementation of the OpenGov online platform in FY 2019-20. The OpenGov software will enhance the City's budget development process and public reporting, as well as provide resident engagement and web -based interactive performance trends for the community to review. Additionally, staff will seek guidance from professional financial organizations, including engaging the Government Finance Officers Association (GFOA) to perform an onsite best practices review of the City's financial processes and procedures prior to the upcoming implementation of the City's new financial and human capital management system. Finance staff will be using the League of California Cities Municipal Health Diagnostic Tool to analyze the City's financial operations long-term. The City continues to provide innovative programs and high quality service to the community while maintaining the long-term fiscal health of the City, and advancing the City Council's major priorities and City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 634