Report from the CAO on the Fiscal State of the City #3. City of Culver City California City Council Agenda Item Report Meeting Date: 05/22/06 AGENDA ITEM: Financial State of the City Part III Item Number: A 1 Contact Person/Dept.: Jerry Fulwood Phone Number: (310) 253 6000 Fiscal Impact: Yes Public Hearing: Public Notification: Master Notification List 5/18/06 X No General Fund: Yes X No Attachments: Action Item: X Department Approval: Jerry Fulwood (05/17/06) City Controller Approval: Marlee Chang (05/17/06) RECOMMENDATION: CAO Approval: Jerry Fulwood (05/17/06) Receive report and direct staff as deemed appropriate. EXECUTIVE SUMMARY The current and future financial issues facing the City are two fold; both cost reductions and revenue enhancements must be addressed in order for the City to maintain its high level of services and financial health. The estimated projection for the fiscal year 2006 07 operating budget indicates a potential budget gap as high as $2.0 million. This projection may be modified based on decisions made during the upcoming budget process. The capital project funding needs are estimated to be approximately $8 to $9 million each year for at least the next five years. The future unfunded long term liability for the Self insurance Fund was $17 million as of June 30 2005 and the cash reserve has fallen from approximately $13 million in 2000 01 to just over $1 million in 2004 05. The unfunded actuarial liability for the CalPERS pension plan is estimated to be approximately $30 million and the future liability for the retiree medical insurance is expected to be substantial (amount still to be determined). Currently the City has an estimated deferred maintenance backlog of over $25 million. The City must assess the maintenance needs for its current infrastructure and develop a plan and ongoing funding source. It is prudent for the City to: 1) take an action to close the projected operating deficit 2) consider setting aside one time revenue or establ...
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