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HomeMy WebLinkAboutStaff Report 157-07City of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL / CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: SUBJECT: FEBRUARY 26, 2007 CMR: 157:07 RECOMMENDATION FOR COUNCIL TO REVIEW AND COMMENT ON PRELIMINARY REVENUE ENHANCEMENTS AND EXPENSE REDUCTIONS TO ADDRESS THE $3 MILLION INFRASTRUCTURE FUNDING CHALLENGE RECOMMENDATION Staff recommends that Council review and comment on the preliminary list of revenue enhancements and expense reductions to address the $3 million infrastructure funding challenge. BACKGROUND In April 2006, the City Council approved the milestones for its "Top 3" priority, Increase Infrastructure Funding (CMR:191:06). The milestones included reviewing options to increase General Fund infrastructure funding by $3 million a year through a combination of expenditure reductions and revenue enhancements. DISCUSSION The Finance Committee held an initial discussion of options on May 23, 2006 and directed staff to return to the City Council for further discussion. A study session with the City Council was held on June 20, 2006, where the most likely options were discussed (CMR:270:06). On October 17, 2006 the Finance Committee reviewed these options for incorporation into the 2007-17 Long Range Financial Forecast (CMR:375:06), which included an initial view of how the recommendations might impact the 2007-09 budget. With the 2007-09 budget process now underway staff is presenting the options for enhancing revenue and decreasing expense in the General Fund to the City Council for further consideration before incorporation into the 2007-09 proposed budget. PREPARED BY: DAVID RAMBERG Budget Manager CMR:157:07 Page 1 of 2 DEPARTMENT HEAD: irector o~Administrative Services CITY MANAGER APPROVAL: Assistant City Manager CMR: 157:07 Page 2 of 2