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Joiner explained that the budget proposal is tentative at this stage-the legislature has yet to weigh in on the budget and it is unknown if the $15 billion recovery bond measure needed to make this budget work will be approved by the voters in March, 2004. In addition, the State promised to pay the VLF gap, that is the backfill for the period of June 19 through September30, 2003 to counties and cities in 2006. This payment may not be included in the final budget. Joiner concluded by saying that the final product most likely won't be available until July, 2004, or later and may include tax increases,restoration of the VLF, or even further shifts of property tax. She will update Council as the budget unfolds. 8.2 City Attorney 8.3 City Clerk 8.3.1 Report on Council Correspondence Mayor Cheng reported that Acting City Engineer David Ross is investigating the response letter from the Department of Transportation that was in Council's packet regarding accidents on El Monte and Highway 280. 9. COUNCIL-INITIATED ITEMS 9.1 Discussion of Town Newsletter Policy—Councilmember Warshawsky City Manager Cassingham introduced this item to Council. Cassingham noted that this item had been agendized for discussion at the request of Councilmember Warshawsky. During the review process of the December Newsletter, there had been differing opinions regarding a proposed article and the policy discussion has been brought forward to Council to give guidance to the Editor, Community Relations Committee and staff. Cassingham had summarized the 1986 Council adopted Newsletter Policy and the more current Fair Political Practices Commission's mass mailing regulations for Council in the staff report that was before them. OPENED PUBLIC COMMENT Roy Woolsey, Chair Community Relations Committee, addressed Council. He commended Duffy Price, Newsletter Editor, for her outstanding work as a volunteer editor. Woolsey stated that he believes, in general, that the Town's 1986 Newsletter Policy is excellent. The policy clearly states that the Newsletter is to be objective and non-political and clearly defines that the purpose of the newsletter is to inform the public rather than to promote. Woolsey explained his recommendations for additions to the Newsletter Policy: 1) Fold into the 1986 Policy the three FPPC regulations as identified in the 1989 letter from the City Attorney; 2) Eliminate the routine review by the City Attorney of the Newsletter and • only forward articles that are identified as needing City Attorney review by the Newsletter Editor, Council or staff; 9 City Council Meeting Minutes January 15,2004