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Given the financ/a/crisis at the State level, Mr. Campbell asked staff if they were <br />nervous about the City's budget. <br /> <br /> Ms. Rossi believed the State's financial situation was worse than it was in the <br />early 1990's. She believed, however, the percentage hit that the City took in the early <br />1990's will be much greater than what is currently being considered. <br /> <br /> Mr. Campbell asked when staff would consider accessing the funds in the <br />temporary reserve? <br /> <br /> Ms. Rossi mentioned that a temporary recession reserve was implemented in the <br />early 1990's. Staff did not have to access the temporary reserve at that time and waited <br />until the economy began to cover, which was a two-year period. In order to get through <br />that period of time, staffreduced the replacement funding. Staffthen put more money ' <br />back into the replacement fund with the bulk of the money going to the Capital <br />Improvement Program. She was hopeful that the City would go through this same <br />process. <br /> <br /> Mr. Brozosky seemed to believe that the City was getting its backfill portion of <br /> the Vehicle License Fees (VLF). He asked for the amount that the City was going to <br /> lose, as he was trying to compare it to what the City could be losing from the ERAF shift. <br /> If the City had potentially lost the entire VLF backfill, Ms. Rossi reported that the <br /> amount lost would have been $2.5 million dollars. Staffhas projected this year to lose <br /> about $900,000, which was during the gap period when the State did not provide the VLF <br /> backfill. The City also lost additional items from the State this year, which combined, <br /> totaled about a million and half dollars. She pointed out that the Governor's current <br /> proposal is about the same for next year as what the City has lost this year in total. <br /> Ms. MeKeehan provided confirmation that the City would use the temporary <br /> reserve fund as a last resort. If the funds were not used, they would be transferred over to <br /> the Capital Improvement Program. <br /> <br /> Ms. Ayala mentioned that it would be helpful for her to have information <br /> available with the mid-year budget report that allow her the oppommity to respond to <br /> what is being considered at the State level. She would like the information to entail <br /> where the City has increased spending, where revenue has been decreased, and <br /> suggestions for decreases in spending. <br /> <br /> Vice Mayor Ayala opened and closed the public hearing. <br /> <br /> Pleasanton City Council 28 01/20/04 <br /> Minutes <br /> <br /> <br />