1. BEAT Budget Efficiency Action Team October 19, 2004

2. Purpose  Improve Cost Recovery  Reduce Costs  Improve Efficiency

3. Proposition 1A  Endorsed by Governor and League of California Cities  Replaces Need for Proposition 65  More flexible approach to protect local tax dollars  Broad bipartisan support

4. Proposition 1A  Property tax reallocation:  No more than 2 times in 10 years  Repayment within three fiscal years with interest  Two-third vote required to reallocate local property tax revenue  Sales Tax  Guarantees return of ¼ cent Bradley Burns Sales Tax when Prop 57 bonds retired  VLF  Reduced to 0.65% statutorily with property tax backfill between 0.65% and 2%

5. Heath/Dental/Vision Benefits  Staff working to change PPO  No change in benefits  Savings of $2,000,000 annually

6. Retirement Benefits - PERS  Changes in FY 2004/05  Prepaid PERS premium  Applied a 25 Year Fresh Start to our Unfunded Actuarial Liability

7. Self Accrual of Sales & Use Tax  City control assures receipt of full 1%  Three categories:  City Purchases  Register Job Sites  Partner with Local Businesses

8. Capital Project and Equipment Financing Mechanisms  Financing Strategy  Admin Services meetings  Lease Purchase  Smooth costs over time  Stabilizes costs to departments

9. BEAT October 19, 2004