Laserfiche WebLink
7.1.A. - Page 14 <br /> costs. Mr. Ponty answered: other factors were included such as health care and salary <br /> costs; with health care costs, the City is looking at 5% or 6% increase per year, because <br /> those were the indicators from PERS and discussions with actuaries. <br /> Another Council Member asked how the school districts are handling the ERAF. <br /> According to Mr. Ponty, if the revenue limits go up, then the categorical grants would <br /> hurt them because they will lose the money. He also added that each school district, <br /> including the college district, has a unique situation. The same Council Member <br /> suggested talking with Jan Christensen and with the Belmont-Redwood Shores and <br /> Redwood City School Districts. Another Council Member said that she and Mayor <br /> Aguirre have joined with the Redwood City School District in sending a letter to the <br /> Governor that addresses the State's proposal on funding schools and the different <br /> school districts. She too would like to know how it will affect the City's partnerships. <br /> Mr. Ponty then shared the prognosis for the General Fund Projected Reserves and <br /> opined that the City is having a healthy revenue growth. His final items covered were <br /> the areas of concern which included: sales tax, retirement contributions, ERAF refunds, <br /> workers' compensation costs, and State and Federal fiscal situations. <br /> One Council Member inquired about CaIPERS and how they make their earnings and <br /> how are they sustainable. Mr. Ponty explained that CaIPERS needs a high return on <br /> their investments; and, if they do not get that, then CaIPERS has to look for funds <br /> elsewhere. The same Council Member also brought up revenue services and the <br /> breakdown between businesses and non-businesses components on the website. She <br /> wanted to know if the City is placing their Economic Development efforts in the areas <br /> where they see the most revenue growth. Dr. Bell said that the Economic Development <br /> Manager's primary foci are on business retention and understanding long term needs. <br /> He also added that the overarching goal of the Chief Actuary is to have PERS system <br /> fully funded in the next thirty years. <br /> Vice Mayor Gee inquired about the inflation assumption and how that is counted in the <br /> forecast. Mr. Ponty answered that employee costs, salaries, and other details <br /> contribute to the assumptions. Vice Mayor Gee also asked how San Mateo County is <br /> now in the predicament that they are in concerning ERAF. Mr. Ponty explained that it <br /> was a combination of factors. Dr. Bell briefly mentioned the Capital Improvement <br /> Program (CIP) budget since the Council had seen this at the April study session. He <br /> asked Council to approve this item at the next Council Meeting. <br /> Furthermore, Dr. Bell discussed about his retreat with the Executive Team and their <br /> focus on organization adaptability. Specifically, he explained about the workforce <br /> potentially contracting and expanding for various reasons. But, when it happens, the <br /> City needs to move quickly and be able to adapt and respond accordingly. He <br /> recommended that this type of discussion needs to be addressed now instead of later. <br /> Dr. Bell also alluded to the broader management group, the labor groups, revenue <br /> options, services we can sell, and how we need to focus on containing costs. <br /> Mayor Aguirre asked Dr. Bell for confirmation that the City's budget is focused on what <br /> is the known; and so, we have control on planning a budget even though there are <br /> JOINT CITY COUNCIUSUCCESSOR AGENCY BOARD June 3, 2013 <br /> MEETING MINUTES PAGE 7 <br />