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Recommendation: Receive update on current status of City's General Fund budget, consider options presented, and provide direction to prepare requisite information for City Council decision-making meeting on October 19, 2009. (501) Mayor Foust made some introductory remarks, explaining that what is in the packet is painful and that Department Heads worked hard to make these recommendations. She asked that everybody come up with suggestions and great ideas to help the city be creative and visionary in handling a serious budgetary situation. One Council Member explained that there is a three year structural imbalance and this will have to be dealt with for the long term sustainability of the organization. City Manager Ingram made some framing remarks and explained that this will be a two part process with staff coming back in October for Council action. He further explained that by October 19, 2009 the information about the Redevelopment Agency "hit" should be in and staff may be able to present something to the Council. Mr. Ingram stated that preliminarily it looks like a manageable situation on that front. Mr. Ingram outlined the agenda for the evening. Mr. Ponty, Finance Director, then provided a financial update. Mr. Ponty covered five options that Council might consider (presentation on file). He also explained the issue of reserves and its impacts depending on cutting now or later. One Council Member clarified that these options are to address the current state takeaway but also there will be the issue of the softening of revenues which will need to be addressed because of its impact on the City's General Fund. Mr. Ponty then focused on the securitization program. Mayor Foust asked about the inception and creation of this process. Mr. Ponty provided some answers on how he believes this came to pass. City Attorney Yamamoto and Mr. Ponty attended a webinar on the topic and briefly shared some of that information. Council discussed the securitization program and its pros and cons and how Council might want to pursue it or not. One Council Member stated that even if this sounds good there is someone losing money in this process. Another Council Member stated that the issue is about balancing risk and that there may be additional information that may be helpful. At least four Council Members were interested in hearing more about the securitization, having staff come back with an update, and possibly pursuing this as an option to address the state takeaway. Mr. Bob Bell, Human Resources Director, provided an update on labor meetings that have been occurring since February 2009. He explained that there have been various meetings with employees about the possible recommended cuts but the actual clock (for possible lay-offs) does not start until Council takes final action and directs staff either way. One Council member asked how many lay-offs the recommendations would lead to and Mr. Bell said this would lead to 16 lay-offs of filled positions, and the elimination of 3.89 vacant positions. Mayor Foust said that to be clear there will be no decisions tonight and until then staff will continue discussions with the labor groups. Mr. Bell then covered long-term opportunities that were discussed amongst the Executive Team. City Manager Ingram JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD SEPTEMBER 14, 2009 MEETING MINUTES PAGE 9 MINUTE BOOK NO. 62 Page No. 472