AgdaPkt 2011-07-11 - Laserfiche WebLink

Browse Search

6.1.A. - Page 13 7. STAFF REPORT(S) A. Fiscal Year 2011 -2012 Budget Study Sessions Dr. Bell provided an overview of what was in store for tonight for Council consideration (presentation on file). Tonight's presentation will include the Redevelopment Agency, Sewer Fund, Water Fund and the Capital Improvement Program. One Council Member noted that Redwood City was named by the San Jose Mercury as "software city ". Mr. Ponty, Finance Director, then provided a financial overview as well as an analysis of the reserve (presentation on file). He covered general fund revenues, how property taxes are allocated and used as well as General Fund expenditures. He explained that the Transient Occupancy Tax (TOT) has been running a little above what is expected and this is good news but he does not expect it to continue to grow. He noted that the big unknown is how the Redevelopment Agency (RDA) will turn out and its implications for Redwood City. He confirmed that the current budget assumptions exclude the Business License and TOT items (which will be on the November ballot). He explained that the goal is to close the gap in FY (Fiscal Year) 13 -14 and if that occurs he believes we will have a sustainable organization. He also noted other areas of concern that may impact the General Fund. Council Discussion Vice Mayor Aguirre inquired about the parking fund, its deficit and when this will be addressed. Mr. Ponty, Finance Director, said that it will depend on Council's actions and he does not foresee that these subsidies will go away. One Council Member would like to get a plan to close the gap. City Manager Bell noted that the two components are price and volume and these need to be looked at. He said that soon the City will have a new set of eyes with the new Community Development Director and he /she can look at this with fresh eyes and do more than just tweak it, which is what has been done in the past. Council inquired about funds coming from citations and Mr. Ponty explained that citations are a different type of revenue but eventually they flow back into the General Fund. This Council Member would like to see the new Community Development Director study a new metering system that might bring us more revenues. Another Council Member supports a vibrant downtown and believes the two measures might lead us in that direction. She believes that this will enhance the value of our downtown properties. Another Council Member inquired about the secured property tax and this Council Member would like a better understanding of the residential versus commercial revenues. Mr. Ponty provided a break down clarifying that 2/3 is attributed to residential and the rest applies to everybody else. This Council Member wants to be able to tell the story and this information is useful. She also mentioned that the reserves could cover an unexpected retirement medical cost. Mr. Bell noted that these discussions need to continue and this Council Member noted that the Council will also be giving back with concessions of their own benefits. She wanted the community to be aware of this fact. One Council Member wanted the Finance Director to double check the figures he provided to the prior Council Member on the issue of the property taxes breakdown. SPECIAL CITY COUNCIL MEETING /BUDGET STUDY SESSION I June 20, 2011 MINUTES 4