AgdaPkt 2003-02-24 - Laserfiche WebLink

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7.2 Section - Resolutions A. Surplus Property — 1972 Fire Pumper Truck surplus and authorize the transfer of this truck to Colima, Mexico; Rudy Luca stated that he does not object to this recommendation; however, he requested that the City and staff assist residents in the community in need. Council Member Ruskin stated that the City does show concern for those who are most disadvantaged every year from the General Fund by devoting approximately $250,000.00 to non - profit organizations. The recommendations to Council for appropriating funds to specific organizations are carefully considered by the Housing and Human Concerns Committee every year. M/S Ruskin /Howard to adopt RESOLUTION 14497 DECLARING CERTAIN DESCRIBED CITY -OWNED PROPERTY SURPLUS AND AUTHORIZING SALE THEREOF; The motion passed by a unanimous roll call vote. 8. STUDY SESSION - A. GENERAL FUND FINANCIAL CONDITION; City Manager Everett stated that the City is dealing with two different problems, the economy and the State of California. In order to balance the State budget, the State is taking local revenues. City staff is proposing a short term and long term solution to the fiscal problems. He further stated that with Council leading and staff assisting Redwood City has positioned itself to handle the economic downturn, hopefully, without any layoffs of employees. He stated that, however, if the City loses Vehicle License Fee (VLF), his belief is that there will be layoffs that cover every department including public safety. Director of Finance and Financial Planning Ponty explained the economy, what has occurred and why we are in this position. He outlined a five pronged strategy to deal with the situation, both short term and long term. The potential solutions included reducing expenditures, use of reserves, future economic development, raising existing City fees /taxes to market level and fighting the State. He further outlined the proposed calendar for addressing both the short term FY 02/03 deficit and the long term FY 03/04 and FY 04/05 deficits. City Manager explained that the State plans to take local revenues to balance the State budget. He delineated how the State has caused a normal difficult economic downturn to become a financial disaster. Firstly, when boom revenues occurred the State applied them as though they would be continuing revenues spending them on continuing and drastically increased State expenditures. Secondly, a tremendous amount of one time revenues consisting of capital gains and stock REGULAR CITY COUNCIL MEETING FEBRUARY 3, 2003 MINUTES PAGE 3