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not repay its obligation to the bond holders, local governments are not expected to be responsible. He added that staff would recommend that if the securitization program gets approved the Council then adopt "Package 1" and if the securitization program does not proceed then approve Packets 1 through 4. Mr. Ponty explained the financial repercussions of these actions. He covered the implications on the city reserves. He also spoke about the General Improvement District 1- 64 and how this should also be pursued. This matter would come before the Council at the next Council meeting if the Council approves the Prop 1A approach tonight. He added that the Finance Committee had given Mr. Ponty direction to collapse the City Hall Certificates of Participation, and the item will be on next week's agenda for Council approval. He also provided a reserve analysis pre and post state takeaways. Mr. Ponty said that another unknown will be the business license tax that will be on the November 3, 2009 ballot. The Mayor confirmed that if it passes collection of funds will begin July 1, 2010. M/S Ira/Aguirre Aguirre to adopt the resolution. Motion carried unanimously by roll call vote. B. Budget direction for Fiscal Year 2009/10 General Fund amendments. Recommendation: Assuming City Council approval to participate in the Proposition 1A Securitization Program as recommended in a separate, preceding staff report on this date, by motion, direct staff to return to Council on Nov. 9, 2009 with a resolution implementing budget reductions as described as "Package 1" herein, and equal to $943,715, plus additional parking citation revenues of $75,000, for a total deficit reduction of$1,018,715 on an annualized basis. (501) City Manager Ingram presented the options before Council. He added that another option is to make no cuts and wait to provide direction on the next budget cycle. He shared that the road to sustainability is a multi-year road and he acknowledged that the size of the organization as well as services are being cut and this will impact the community. Mr. Ingram said that the preference would be to select packages as a whole instead of picking from different packages since a lot of thought was put into each grouping. Mr. Ingram clarified that Council's decisions will be formally approved at the November 9, 2009 meeting. The City Manager then reviewed in detail long-term financial projections for the city, as well as impacts on services and how these tie back to the reserves. Questions were raised about the business tax license should this pass in November 09. Mr. Ponty said these possible revenues were not included in the projections but Costco and Kohl's were. Public Comment Mayor Foust called for public comment but the speaker was no longer present. Council discussed the cuts in "Package 1" and various departments answered specific questions. Mr. Chang, Director of Building Infrastructure and Transportation answered JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD OCTOBER 19, 2009 MEETING MINUTES PAGE 4 MINUTE BOOK NO. 62 Page No. 496