Laserfiche WebLink
6.1.G. - Page 7 <br /> Background <br /> The recent recession presented significant budget anr_i operational chalienges to our County <br /> and city governments. Tn mar�y areas, house prices anc� property values deciined, slowing real <br /> estate transactions and receipt of assaciated praperty and transfer taxes. Une�nployment rose, <br /> businesses cDosed and credit tightened, affecting retail sales and sales tax revenues. Employee <br /> pensions, health care and other costs rose unabated during this period. Locaf govemments <br /> were forced to maI�e tough decisions t�n how to balance their budgets and carrect stru.ctural <br /> imbalances. The recession was long and deep, with a slow recovery sti�l in progress. <br /> I,ocal news reports highlighted significant cutbacks in and o�tsourcing of serviees, <br /> department consolidations across cities, city worker layoffs and salary reductions, and other <br /> atternpts to deal with �nancial challenges facing individual cities. The County and cities were <br /> in different starting pQSitions based on their inc�ividuai financial circumstances and strength <br /> going into this recessian. Therefore, each had different options avaitable to manage through <br /> it, such as cutting expen�es via job reductions and service cuts in �ine vvith anticipated and <br /> actual revenues, and/or dra��ing dow� xeserves to levels consistent with. city policies, <br /> recaxz�mended Governxnental Accounting Standards Board (GASB) standards, and their <br /> respective planning assumptions about the future. <br /> T�e 2011 San Mateo Caunty Civil Graz�d Jury (Grand Jury} was intezested zn understanding <br /> how cities coped with the recession and how they are positioned for the future. Are they now <br /> "running on empty", meaning have they exhausted all or most of thei� reserve funds, or have <br /> they maintained sufficient re�erves to be on reasor�abiy solid faating for challenges ahead? <br /> Are �hey meeting their pensio� and z health care obligations? Att�anpting to answer <br /> t�ese questions would provide the answer to another �Cey question: how easy is it for interested <br /> citizens to determine the �scal healtY� of their cities and County from readily avai�abl� public <br /> information? <br /> In�esti�ation <br /> The Grand Jury �xpEored the fo[lowing areas: <br /> + Avaxlability of i�forrinatiom — What inforznation is available on city and County <br /> websites for citizens interested in assessing their city's and Caunty's fiscal state and <br /> perforrriance and how they may have changed over time? <br /> • Reserves as an indicator of iiscal health — What are "reserves? Are there dyfferent <br /> types of reserves and requirements related to them? Which shouid the Grand Jury <br /> look at to understand the r�ature and impact of decisions made as a result of the <br /> recessian? Are thez related �netz that �eed 10 be Iooked at in paraIlel for a more <br /> complete understa�ding? <br /> • Applicable Policies and Standards -- What policies and standards exist with respect to <br /> Ievels and use of reserves for each city and the County? Have cities and the Gounty <br /> cQmplied with their policies at�d star�dards dur�ng this period, and can the Grand Jury see <br /> 2 <br />