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2011 AUG 31 CC MIN SPCSPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL Wednesday, August 31, 2011 El Segundo Public Library 111 W. Mariposa Avenue, El Segundo, CA 90245 7:30 a.m. 7:30 A.M. SESSION CALL TO ORDER — Mayor Busch at 7:30 a.m. ROLL CALL Mayor Busch - Present Mayor Pro Tern Fisher - Present Council Member Brann - Present Council Member Fuentes - Present Council Member Jacobson - Present PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. - NONE SPECIAL ORDERS OF BUSINESS: Consideration and possible action regarding the presentation of the Fiscal Year 2011 -2012 Preliminary Budget. Staff will present a brief overview of the estimated General Fund Fiscal Year 2010 -2011 yearend projections and the General Fund Fiscal Year 2011 -2012 Preliminary Budget assumptions. Staff will also provide follow -up on open items from the prior Strategic Planning Session. Deborah Cullen, Finance Director, gave a presentation. Fiscal Year 2010 -2011 Yearend projections Fund Balance Reserve Yearend Balance Projection Fiscal Year 2011 -2012 Preliminary Budget Assumptions used in preparation of the FY 2011 -2012 Preliminary Budget Eliminating the Projected FY 2011 -2012 General Fund Structural Deficit Elimination of Vacant Positions Proposed Salary and Benefit Reductions Fleet Savings Golf Course Lease Repayment Economic Development Plan Smokey Hollow Capital Infrastructure Plan MINUTES OF THE SPECIAL CITY COUNCIL MEETING AUGUST 31, 2011 PAGE NO. 1 Greg Carpenter, Planning and Building Safety Director, gave a brief report on Economic Development plans and projections. Stephanie Katsouleas, Public Works Director, gave a brief report on Capitol Improvements. City Manager Doug Wilmore provided several funding options for the Capitol Improvements. 2. Consideration and possible action regarding the presentation of fiscal year 2010 -2011 Third Quarter Financial Review MOTION by Mayor Busch, SECONDED by Mayor Pro Tern Fisher to commit to a structurally balanced budget and support a reduction in employee compensations of 3.5 million dollars. MOTION PASSED BY THE FOLLOWING VOICE VOTE; AYES: BUSCH, FISHER, JACOBSON AND FUENTES. NOES: BRANN. 4/1 MOTION by Council Member Jacobson, SECONDED by Council Member Brann, to accept the Economic Development plan, with implementation to begin 2011 -2012. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 MOTION by Mayor Busch, SECONDED by Mayor Pro Tern Fisher to continue researching an infrastructure loan with low interest rate with a maximum of $700,000 per month in a loan payment; obtain construction cost estimates; discuss the sale of property at the corner of Main and Grand at a future date; return to Council for final approval before moving forward with any projects or financing . MOTION PASSED BY THE FOLLOWING VOICE VOTE; AYES: BUSCH, FISHER, BRANN AND FUENTES. NOES: JACOBSON. 4/1 The first hearing for the Fiscal Year 2011 -2012 Budget Adoption will be held at the September 6, 2011 City Council Meeting. Council may raise other development, policy, capital project, and potential budget reduction items for consideration as part of staff's preparation for the FY 2011 -12 Adopted Budget. ADJOURNMENT at 9:20 a.m. Cindy Mo4fesen, City Clerk NOTE: The motion for item #2, stamped agenda page 036, Special Meeting of August 31, 2011, has been corrected as shown above. 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