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Mr. Ponty covered the Five Year Projections and the assumptions used on projections for the upcoming years ahead. He believes that for Fiscal Year 2013-14 there is a gap that needs to be closed but after that it looks like it will be manageable. He reviewed the General Fund Projected Reserves projecting out to 2017 which still matches the Council's Reserves Policy. He noted some areas of concern are: dissolution of the RDA, Sales Tax, Retirement Contributions, ERAF (Educational Revenue Augmentation Fund Refunds), Parking Fund and State unknowns. One Council Member asked about the Reserves and how the current Reserve shows a $2 million shift into the General fund and so the figure of$15.6 (18.96%) includes that shift. Another Council Member inquired about the parking fund. Dr. Bell said that this will handled through the Economic Development Subcommittee that will be reviewing the technology, the cost, the fund to address the funding from an operational perspective. He said this is to come back to the Council in the Fall for further confirmation. Another Council Member asked about the PERS rates and Mr. Ponty said that the rates are not changing dramatically on Fiscal Year 2012-13 but in subsequent years it goes up $1 million. Dr. Bell elaborated on the State threat and were it not for the RDA dissolution Redwood City would have been in a much better position. Another Council Member inquired about the Parking Fund she does not agree with supporting this indefinitely, but does agree with some funds going to the Police Department. One Council Member inquired about inflation and Mr. Ponty said staff is assuming a 3% rate and he explained how they came to that figure. Vice Mayor Gee inquired about deferrals and if we are in a good place from a cash perspective and Mr. Ponty said that yes we are in a good place. One Council Member noted that there is no room to grow according to the letter from the City Manager, and so we as a City need to be creative. She also noted that Mr. Ponty is working on a chart that shows what the industry contributes to the General Fund. She mentioned that business retention is a crucial point for us to consider and making sure we are able to grow. One Council Member noted that there is an opportunity to talk to the Port because she would like to see if the subvention figure could go up. She opined that it is nice not to have to subsidize the Port but she would like to see the subvention increase. She also inquired about the Fire Department swing (upwards) of$600,000. Mr. Skinner said that with the ability to charge for inspections that adds revenue. This Council Member thanked the Fire Chief for doing this. This Council Member also would like to discuss the garbage collection fees and the franchise fees and how the Joint Powers Authority (twelve communities with the County) issue that the Utilities Commission is handling. She said the JPA is a concern since it seems to be growing and they have added people and their budget grew. Mr. Ponty provided information regarding the franchise fee. This Council Member would like additional oversight and Dr. Bell, said that regarding next steps, he is convening a meeting of the City Managers that serve in that JPA to recognize and identify the issues and any other concerns their respective Councils might have. He will then come back with further recommendations. CITY COUNCIL June 11, 2012 MEETING MINUTES PAGE 6 MINUTE BOOK NO. 64 Page No. 142