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2015-01-20 Joint CC SACIC Minutes MINUTES OF THE SPECIAL JOINT CITY COUNCIL AND SUCCESSOR AGENCY TO THE COMMUNITY IMPROVEMENT COMMISSION (SACIC) MEETING TUESDAY- -JANUARY 20, 2015- -7:01 P.M. Mayor/Chair Spencer convened the meeting at 1:06 a.m. Roll Call - Present: Councilmembers/Agency Members Daysog, Ezzy Ashcraft, Matarrese, Oddie and Mayor/Chair Spencer – 5. Absent: None. Oral Communications None. Agenda Items (15-067 CC/15-001 SACIC) Recommendation to Accept the First Quarter Financial Report for the Period Ending September 30, 2014. (Continued to February 3, 2015) (15-068 CC/15-002 SACIC) Recommendation to Accept the Fiscal Year 2013-14 Audited Financial Statements and Compliance Reports. The Interim Finance Director gave a Power Point presentation. Councilmember/Agency Member Daysog inquired whether the way in which the report was prepared is substantially different than past reports. Grace Zhang, Maze and Associates, responded in the negative; stated reporting has been consistent. Mayor/Chair Spencer stated the presentation was not online. The Assistant City Manager stated the presentation is a summary and was not posted online. Mayor/Chair Spencer stated that she prefers presentations be included in the packet so Council may see them in advance. Vice Mayor/Agency member Matarrese stated there is revenue and expense information included in the presentation that was not in the staff report. The Interim Finance Director explained staff became aware of the information as the Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission January 20, 2015 presentation was being prepared. In response to Vice Mayor/Agency Member Matarrese’s inquiry, the Interim Finance Director stated the disparity in the reserves is because revenues increased and expenses did not; in prior years, the percentage was already 30 to 35; the gain from this fiscal year brought the percent up to 40. The City Manager stated staff predicted a growth of under 3%; 3.6% went into the reserves one year; this year at 8.1% after having projected 2.9%; at the same time, employee cost sharing for healthcare and pensions began; there were cuts in costs at the same time as an unexpected growth in revenue. In response to Vice Mayor/Agency Member Matarrese’s inquiry, the Interim Finance Director stated part of the amount is unrestricted, but part is restricted by previous Council actions. The City Manager stated staff manages a lot of other funds; pension and Other Post Employment Benefits (OPEB) must be characterized. Vice Mayor Matarrese stated clarification is important for the public and Council to understand the mid-year budget. The City Manager stated a systematic approach to the next budget will begin in March to reach a two-year budget resolution in early June; the issues will be decanted in significantly greater detail. Councilmember/Agency Member Daysog stated a key component driving the $29 million reserve is a one-time sale of property. Vice Mayor/Agency Member Matarrese stated one-time events cannot be relied upon for operating expenses. Mayor/Chair Spencer stated a recent presentation at a conference showed Alameda County Cities unfunded OPEB liabilities as a percentage of their General fund; the range was 7% to 140% and Alameda was at 140%. Councilmember/Agency Member Ezzy Ashcraft moved approval of the staff recommendation. Vice Mayor/Agency Member Matarrese seconded the motion, which carried by unanimous voice vote – 5. The City Attorney noted that the First Quarter Financial Report \[paragraph no. 15-067 CC/15-001 SACIC\] could not be continued to tomorrow’s meeting as it was not noticed as a joint meeting; the matter could be continued to the next Joint meeting. Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission January 20, 2015 Adjournment There being no further business, Mayor/Chair Spencer adjourned the meeting at 1:23 a.m. Respectfully submitted, Lara Weisiger, City Clerk Secretary, SACIC The agenda for this meeting was posted in accordance with the Sunshine Ordinance. Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission January 20, 2015