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i breakdown of PERS, Health Insurance premiums, Retiree Health Benefits, and Overtime costs. Mr. Ponty disclosed the assumptions going into the five year projections. Furthermore, he explained that the City Council obtained salary freezes from Executive Team, RCMEA and IAFF. He expressed concern with Health Insurance Costs, Retirement Contributions, ERAF (education revenue augmentation fund refunds) and other extraneous items such as real estate recovery. He reiterated that Council directed staff to balance the budget without using reserves and he noted that these are stable at $14.6 million. Council then posed questions to Mr. Ponty regarding items shared throughout his presentation. Mayor Ira mentioned that SAMCEDA had hired Beacon Economics to do a County wide study on economic indicators and trends. Mayor Ira expressed a desire to consider placing a measure on the 2010 ballot. One Council Member asked about SEIU's salary freeze and its impact on the cuts. Mr. Ponty explained that due to the timing, the budget will not be amended to show these changes, but the savings are appreciated and helpful. Peter Ingram, City Manager, voiced his opinion noting that if the budget is off by .6% he considers it essentially balanced. He highlighted prior Council direction to focus on core services and service levels. Mr. Ingram reiterated that Council was clear on the non-use of reserves. In regards to Boards, Commissions and Committees (BCCs), he noted that staff is reviewing process improvements; however, there is awareness that not all BCC's can be merged. Mr. Ingram explained that this topic will come back to Council as soon as this budget is put to rest. The City Manager summarized the current staffing reductions explaining that about 25,000 hours are being cut in work force. Mr. Ingram also covered new revenues such as parking rate increases and the fire inspection and recreation fees. He then covered the alternatives that Council may further consider. He then opened the floor for Council questions. There were none. Public Comment Evelyn Gutierrez representing SEIU membership of Local 512, thanked Council and the Executive Management for the open communication and noted that their membership voted to approve a cost of living freeze. She spoke about preserving services and to look at alternatives, such as TOT (Transient Occupancy Tax) and business license fees, as opposed to direct cuts to services. Molly Spore-Ahadef, chief steward for SEIU Local 512, noted that some of their membership was present in the Chambers. She said these people want to continue providing public service and she noted that public employees do not pay into social security and that they are ineligible for it as well as ineligible for Medicare for those who began working with the city before 1986. SPECIAL JOINT CITY COUNCIUREDEVELOPMENT AGENCY BOARD June 21, 2010 MEETING MINUTES PAGE 4 MINUTE BOOK NO. 63 Page No. 114