Title
Highlights of the Finance Committee Meeting of November 17, 2015
COMMITTEE RECOMMENDATION: The Committee recommends that staff bring the update on the Boys & Girls Club facility renovation to the City Council in the future.
Body
CITY OF SAN LEANDRO
CITY COUNCIL FINANCE COMMITTEE
November 17, 2015
5:00 - 6:30p.m.
San Leandro City Hall
835 East 14th Street
San Leandro, California
(Sister Cities Gallery)
HIGHLIGHTS
1. CALL TO ORDER
Mayor Cutter called the meeting to order at 5:05 p.m.
1.A. Attendance
Committee members present: Mayor Cutter, Vice Mayor Prola, Councilmember Lee
City staff present: City Manager Zapata, City Attorney Pio Roda, Finance Director Baum, Assistant Finance Director Fuentes, Budget and Compliance Manager Perini
Public present: Robert Glotch, Ivan Cornelius, David Johnson, Corina Lopez, Robin Beebe, Bella Comelo, Jerry Garcia, Steve Song, Arlene Lum, Guillermo Elenes, Cece Adams
1.B. Announcements
None.
2. DISCUSSION ITEMS
2.A. Boys & Girls Club Facility Renovation Update
Bob Glotch returned to the Finance Committee to solicit a lead gift from the City for the renovation of the Boys and Girls Club. He was joined by Ivan Cornelius. The Club has received letters of support from Alameda County and the San Leandro Unified School District. 90% of the Club’s Boardmembers have made a pledge. The Club is asking the City for a letter of support and to consider a $1 million gift.
The Club also offers ongoing support of the City’s homeless population, offering showers and food preparation on every other Sunday. April Showers partners with the Club for this purpose.
Each Finance Committee member voiced support for the Club but were concerned that the $1 million request is more than the City can afford. Vice Mayor Prola said he would advocate for a grant of up to $500,000; Mayor Cutter indicated interest at the $250,000 level, and Councilmember Lee would like to see what other large donors are prepared to do given the high construction cost of an estimated $10 million.
Committee Recommendation for City Council Consideration
The Committee recommends that staff bring the update on the Boys & Girls Club facility renovation to the City Council in the future.
2.B. Minimum Wage Update
Mr. Zapata introduced the minimum wage topic and pointed to a recent ordinance adopted by the City of Emeryville as reference material for a possible minimum wage ordinance in San Leandro.
Mayor Cutter believes we should slowly increase minimum wage and an annual cost of living increase would only win approval if annually authorized by Council.
Vice Mayor Prola cited a UC Berkeley study that provides evidence of a higher minimum wage helping both younger and older workers.
Councilmember Lee would consider an increase in the minimum wage but is concerned about the impact it will have on minority businesses and youth.
David Johnson, Robin Beebe, Jerry Garcia, Steve Song, Arlene Lum, and Cece Adams oppose the minimum wage increase if it hurts local business.
Guillermo Elenes and Bella Comelo favor an increase in the minimum wage to support struggling families.
The Committee recommends staff to return to the Committee with additional information on the minimum wage as it applies to other nearby cities.
2.C. FY 2014-15 Year-End Financial Review
City Manager Zapata noted increases have occurred in sales tax (up 10%) and real property transfer tax (up 56%). The Bay Area has experienced a strong economic rebound since 2008, spurred by quantitative easing and low unemployment. However, the cycle will swing downward at some point which will have a dramatic effect on the City’s economics. During this positive cycle, the City Council has approved Prioritizing Unfunded Liability Liquidation (PULL program), which would set-aside a portion of surplus revenue to reduce long term liabilities. Retiree health care and pension liabilities are approved for pay down. Additional effort to address aging City infrastructure and unfunded capital improvements is needed, guided by Measure HH ballot language.
Mr. Baum stated that the 2014-15 Adjusted Expenditure Budget totals $90.4 million and represents a $7.6 million increase over the Adopted Expenditure Budget due to encumbrance carryovers from the prior fiscal year (funded by dedicated fund balance), and one time Council approved items from unanticipated savings at the end of 2013-14. Year-End activity by department is summarized on Table 2 in the Finance Committee Agenda Packet. Overall year-end actual expenditures were 5.0% less than the Adjusted Expenditure Budget for FY 2014-15.
Finally, Mr. Baum indicated that the 2014-15 year-end forecast for the General Fund has improved over the Adopted Budget, largely due to a greater amount of year-end revenues than expenditures, unspent project funds and prior year carryover of the Economic Uncertainty reserve surplus. It also reflects $1.2 million currently reserved for Alameda County Fire Department’s Other Post-Employment Benefit payments. Revised projections for 2014-15 reflect an operating increase in undesignated fund balance of $8.1 million over the adopted budget. Overall, staff projects a net fund balance in the General Fund of $22.9 million, an improvement of $13.2 million over the Adopted Budget. Please refer to Table 3.
The Committee expressed support for the conservative expenditures and revenues in the prior year and accepted the report.
3. PUBLIC COMMENTS
None.
4. COMMITTEE MEMBER COMMENTS
None.
5. ADJOURN
The meeting was adjourned at 7:05 p.m.