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He explained that the Finance Committee has directed him and Dr. Bell to move forward <br /> with an increase in the Transient Occupancy Tax (TOT) and the Business License Tax. <br /> These will most likely be before the voters at the November 2011 election. In the next <br /> few months, they will begin a conversation with the community regarding these <br /> measures. Mr. Ponty clarified that if Council takes no action Redwood City could be <br /> broke sometime in 2014/2015. <br /> Council Discussion: <br /> One Council Member inquired about the use of reserves and Mr. Ponty provided <br /> information on its use for the last five years. One Council Member explained that <br /> drawing down on reserves is not an option. Another Council Member explained that <br /> taking no action is not an option. Mr. Ponty was asked to elaborate on Council's <br /> reserve policy. Mr. Bell covered Option I which includes: labor concessions, <br /> restructuring and looking at revenue opportunities. He explained that Option II which <br /> pertains to programmatic cuts would not be straight across the board, as it has been <br /> done in the past. Dr. Bell explained that these options I and II are not mutually <br /> exclusive. Council posed questions about PERS and Mr. Ponty explained how certain <br /> assumptions were not updated as benefits were enhanced throughout the years. Dr. <br /> Bell also clarified that Redwood City has a proposal for San Carlos Fire Services and <br /> will await a response. <br /> One Council Member is looking for long term financial sustainability because he does <br /> not like the idea of being broke. He is ready to work with the community and labor. <br /> Another Council Member pointed out that Option I is the responsible way to serve the <br /> community while Option II is the irresponsible way. This Council Member believes that <br /> ultimately labor concessions and personnel costs are going to make the most <br /> difference. Various Council Members thanked Dr. Bell and Mr. Ponty for their work on <br /> this matter. <br /> Another Council Member thanked staff in the audience for all the work leading to <br /> tonight. This Council Member expressed her pride in the community and the employees <br /> of this organization. She pointed out that Council is tired of cutting staff and so the <br /> solution is to work together and get to a better place and we must do it together through <br /> concessions and restructuring. She would like to remind us all of the fact that there are <br /> businesses that employ people and need to be thanked. Yet another Council Member <br /> mentioned that if anyone wants to help, one good way is to support those campaigns <br /> and inform the public about the measures that will be on the ballot. He clarified this is <br /> not a task municipal government can take on and so people will need to get involved <br /> and make this happen. <br /> Vice Mayor Aguirre thanked all the groups present for all they already did last year. <br /> Mayor Ira clarified that in his view Option II is not an option. With the restructuring, he <br /> commented that the goal is to become more efficient. He is looking for sustainability <br /> and long term success. He clarified that government did not invent making promises it <br /> could not keep, and the goal is to avoid bankruptcy and the inability to meet prior <br /> pension obligations. <br /> Dr. Bell confirmed that the draft budget proposal would be sent to Council on June 2, <br /> and two Study Sessions will be held on June 20 and June 27, 2011. <br /> JOINT CITY COUNCIL /REDEVELOPMENT AGENCY BOARD February 7, 2011 <br /> MEETING MINUTES PAGE 6 <br /> MINUTE BOOK NO. 63 <br /> Page No. 273 <br />