CC Min 2003-03-10 Reg - Laserfiche WebLink

Browse Search

Vice Mayor Ira stated that as part of his employment package, the City Attorney was offered a $600,000.00 loan at 5% interest and the recommendation is to reduce the amount to $400,000.00. The loan would be available in a combination of either a loan or some type of equity share with the City. He further stated that the City of San Mateo just hired a City Attorney and the same arrangement was offered in the amount of $500,000.00. Because the City Attorney would be given the option to convert a portion to an equity share, he is willing to reduce the amount to $400,000.00. The package is reasonable and competitive with offer cities in the area. Council Member Hartnett stated that from a financial standpoint, it reduces the City's overall obligation. In either case, the financial interests will be protected, either revenue neutral or making money. M/S Jordan /Ruskin to approve the reduction of housing assistance funds available for City Attorney and providing discretion to the Mayor and Vice Mayor to effectuate additional measures to secure repayment of housing assistance. The motion passed by a unanimous roll call vote. MINUTE ORDER 03 -58 7. STAFF REPORTS — A. Fiscal Year 2002/03 Budget Reductions (501) Financial Services Director Ponty explained the proposed budget reductions and that the recommendation is conceptual approval with formal action to take place in the form of an ordinance adoption at a later date. Council Members asked various questions and made comments related to the proposed reductions. M/S Hartnett/Ruskin to approve the general fund budget reductions for fiscal year 2003/03 that have been submitted by the City Manager. The motion passed by a unanimous voice vote. MINUTE ORDER 03 -59 B. Guidelines for Fiscal Year 03/04 General Fund Budget Cuts (501) City Manager Everett explained the various scenarios for consideration and the reason staff is recommending endorsement of Scenario "B ". He explained the City's problem that include downturn of the economy and increased retirement system contributions. Structural changes in the economy have affected the situation such as some companies utilizing legal means to avoid paying sales tax. REGULAR CITY COUNCIL MEETING MARCH 10, 2003 MINUTES PAGE 4 MINUTES Book No. 59 Page No. 411