agenda city of watsonville city council/redevelopment agency meeting

STRATEGIC PLAN:
The proposed budget plan adheres to the principals used to develop the 2011-2012 Strategic
Plan, beginning with the emphasis to avoid layoffs. At this point, only 5 positions are scheduled
for layoff. The remainder of the 2011-2012 Budget is funded in a manner to carry out the
priorities set by the City Council as follows:
o Sustainable Economic Development
o Community Resources
o Educational Attainment
o City Image
o Safe & Healthy Community
FINANCIAL IMPACT:
The Proposed 2011-2012 Budget balances the General Fund’s $1.93 Million operating deficit.
The General Fund still faces a threat of additional lost funding that could reach $700,000
depending on the actions and reductions that arise out of the State’s solutions to balance their
$9.6 Billion deficit. In addition, the City’s RDA faces either possible elimination or loss of revenue
and current resources from the same State actions. Staff will provide the City Council with
updates and ultimately a reduction plan depending on the impacts from the State’s budget
actions.
ALTERNATIVES:
The City’s Charter requires a budget to be adopted prior to July 1 st (the start of the new Fiscal
Year). The City Council can, within limitations, reallocate resources between certain funds or for
different programs or operations within a fund. Staff have already received City Council and RDA
feedback and direction towards the development of the FY 2011-2012 budget starting in February
2011 through the last budget study session on June 7 th . Any changes at this time are
recommended only for the 5-year Capital Improvement Plan. All prior components of the budget
have been reviewed as part of the prior public budget study sessions.
ATTACHMENTS:
1) 5 Year CIP project listing
2) General Fund Revenue and Expenditure summary
cc:
City Attorney
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