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February 24, 2010 > Fremont City Council

Fremont City Council

February 16, 2010

Work Session:
All Councilmembers Present (Harrison arrived late)

Mid-Year Budget Review
Economic downturn is continuing. East Bay statistics indicate property tax assessments declining although delinquency rate is also declining. Sales are flat and transaction volume is increasing slightly. Construction in Fremont is increasing but overall, fiscal outlook is still grim although staff remains "cautiously optimistic" for the future. Budget balancing strategies continue to use one-time funds, selective hiring freezes and spending restraint. Use of department resources is being "reset" to lower levels rather than restoration of previous standards.

The proposed FY 2010/11 Budget will be presented May 18, 2010 and public hearings are scheduled for June 1 and June 8, 2010. The conclusion is to anticipate a longer downturn, slower recovery adjusting to different service levels and models. Staff will continue to use a multi-year "balancing strategy."

Council Meeting:
Redevelopment Agency Plan Amendment Public Hearing:

Presentation by Redevelopment Director Elias Tierney and staff began with an attempt to clear up "misconceptions" of monies derived from redirection of tax money from local agencies to redevelopment. It was stated categorically that "Revenue from the Plan Amendment is prohibited from use in the NUMMI area" and "The FUSD receives more revenue with the Plan Amendment than without, due to Agency payments to the District and State Subventions."

The stated purpose of the Fremont Redevelopment Agency (RDA) is to create jobs, improve infrastructure, provide affordable housing and build a strong economy; "Every dollar of redevelopment agency spending generates nearly $14 in total economic activity in one year" under local leadership.

Low Income housing advocates, Chamber of Commerce representatives, some community members and Fremont Unified School District representatives spoke in favor of the amendment while two speakers urged caution. All local public agencies required to approve this amendment have agreed to it and any subsequent "pass through" of funds that will be collected and distributed to them.

Mayor Bob Wasserman Aye
Vice Mayor Bob Wieckowski Aye
Anu Natarajan Aye
Bill Harrison Aye
Suzanne Lee Chan Aye

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