AgdaPkt 2011-08-22 - Laserfiche WebLink

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6.1.G. - Page 1 RE PO RT To the Honorable Mayor and City Council From the City Manager August 22, 2011 SUBJECT Response to the San Mateo County Civil Grand Jury Report "Running on Empty" RECOMMENDATION Approve by motion the Director of Finance's Response to the San Mateo County Grand Jury Report "Running on Empty" BACKGROUND On June 27, 2011 the San Mateo County Civil Grand Jury filed a report pertaining to the use of reserves by cities and the County during the recession, the deferral of expenditures such as annual retiree health care payments and the ease of reviewing agencies' financial information by interested citizens (attachment one). In compiling the report, the Grand Jury explored the availability of financial information provided by each agency on its website, the level of general fund reserves of each agency, and reserve policies and standards within each agency. The report concluded, among other things, that the agencies seemed to have prudently managed their Unreserved General Fund Balance reserves through the recession, financial information provided by the agencies could be improved, and the lack of a statutory or contractual requirement to fully meet the annual retiree health care (Other Post Employment Benefits or OPEB) payments resulted in some cities choosing to defer payments and increase unfunded liabilities in favor of other priorities. The report produced eleven findings and eight recommendations. Regarding the findings, the City of Redwood City was reflected favorably in all but two findings. Of the eight recommendations, only five were applicable to the City of Redwood City. The Superior Court has directed the City to submit comments regarding the report's findings and recommendations to the Superior Court no later than September 26, 2011, and that the response must be approved by the City Council at a public meeting. The response to the Grand Jury Report is submitted for your approval (attachment two). Findings Of the eleven findings, only two specifically pertain to the City of Redwood City. The City must indicate one of the following for each applicable finding: 1. The Council agrees with the finding. 2. The Council disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefore.