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November 28, 2011
FY12 Budget Update
GF 5-year Plan Update
• Initiated in FY09 to address structural deficit
• Planned use of $25 million of unallocated reserves to help minimize service level impacts
• Elimination of 286 (142 in GF) filled/vacant full-time equivalent positions through FY12 - 12% reduction from FY09 levels
• Gross budget reduction of $23.1M
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GF 5-year Plan Update
• Net budget reduction of $15.9 M with absorption of $4.1 of increases to pension and medical costs
• Reorganization of various departmental operations to improve efficiency (DOIT, MASH, Planning, PCDC)
• Actions taken to-date will result $150 M in cumulative cost avoidance through FY16
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FY12 GF Budget by Department
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Police58141362
27%
Fire39471206
18%
Debt32411180
15%Public Works19369724
9%
HS &R$9,022,726
4%
Planning7395112
3%
Transportation4818257
2%
Non-Depart$19,391,645
9%
Finance9041622
4%
City Manager4277636
2%
City Attorney 6163493
3%
HR $2,688,834
1%
City Council 1950842
1%
City Clerk1699616
1%
GF Reductions Since FY09
Cummlative Changes FY09 - FY12
Department Personnel Non-Personnel Total
City Council $0 $127,375 $127,375
City Clerk $260,023 $0 $260,023
City Attorney $483,715 $190,966 $674,681
City Manager $504,285 $192,261 $696,546
Finance $2,160,692 $408,949 $2,569,641
Fire $3,314,044 $57,963 $3,372,007
Human Resources $556,781 $190,982 $747,763
Human Services & Recreation 937,492.00 $640,584 $1,578,076
Planning $1,794,412 $898,413 $2,692,825
Police $3,504,084 $49,955 $3,554,039
Public Works $1,298,764 $866,601 $2,165,365
Transportation $196,100 $671,538 $867,638
Total General Funds Reductions $15,010,392 $4,295,587 $19,305,979
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GF Rev & Exp History & Forecast
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FY11 GF Results - Unaudited
• Revenues $3.3 million less than budgeted (rounded)
> Property, sales, utility users, and other taxes primarily
• Expenses $2.6 million less than budgeted (rounded)
> Personnel, services and supplies, and debt service primarily
• FY11 year-end deficit $6.1 million > FY11 budgeted deficit - $5.5 million
> FY11 revised deficit presented during the FY12 budget process - $5.8 million
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Use of Fund BalanceUse of $21 million FY09 – FY11
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Revised FY12 GF Budget Estimates
Addressing the $3.6 M Challenge
• Focus on structural revenue enhancements and cost reductions
• Results in programmatic adjustments
• 37 Recommendations categorized into three parts> Items recommended
> Items not recommended
> Items that require additional analysis to determine feasibility and true fiscal impact
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Recommended Changes by Dept.
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Department FY12 FY13
ExpensesCity Attorney $224,250 $64,750City Clerk $0 $20,000Finance $0 $226,023Fire $90,000 $185,160Housing $37,938 $133,876Human Services and Recreation $185,160 $441,460Planning $167,711 $209,090Police $200,000 $444,185Public Works $55,500 $141,095Transportation $0 $257,000
Expense Total $960,559 $2,122,640
RevenuesFinance $70,000 $135,000Human Services and Recreation $100,000 $300,000Planning $0 $312,500
Revenue Total $170,000 $747,500
Staff Recommended Changes $1,130,559 $2,870,140
Increase Power Fund Transfer $3,172,103 $1,586,052
Total Proposed Changes $4,302,662 $4,456,192
Items Recommended – 21 Items
• City Attorney/City Prosecutor 1. Operational reorganization - $224,250 / $64,750
• City Clerk2. Under-fill Asst City Clerk position with Deputy City
Clerk position in the Official Records Division – $0 / $20,000
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Estimated FY12 Fiscal Impact - $4.3 M / FY13 and beyond $4.5 M
Items Recommended – 21 Items
• Finance3. Eliminate payroll checks/Statements of Deposit
(require all employees to use direct deposit) – $0 / $31,000
10. Institute charge to agencies for issuance of conduit bonds ($15,000 for TEFRA hearing. For bonds transactions where the City is the conduit issuer.30% with a minimum $30,000) – $10,000 / $10,000
16.Restructure Pasadena First/Local Hire Program efforts resulting in the reduction of 1 filled FTE and 1 vacant FTE – $0 / $195,023
> M-1 More aggressive Business Licensing compliance – $60,000 / $125,000
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Estimated FY12 Fiscal Impact - $4.3 M / FY13 and beyond $4.5 M
Items Recommended – 21 Items
• Fire4. Eliminate administrative captain position – $90,000 /
$185,160
• Housing17. Reassign .5 part-time MASH position to non GF
function – $14,438 / $28,876
18. Reduce Summer Rose Program stipend from $1,200 to $600 – $0 / $105,000
> M-2 Misc Administrative changes – $23,500 / $0
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Estimated FY12 Fiscal Impact - $4.3 M / FY13 and beyond $4.5 M
Items Recommended – 21 Items
• Human Services & Recreation5. Reorganize of department responsibilities resulting in
the defund two full-time vacant and two full-time filled positions – $185,160 / $441,460
12. Retool recreation program fees for service resulting in additional cost recovery – $100,000 / $300,000
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Estimated FY12 Fiscal Impact - $4.3 M / FY13 and beyond $4.5 M
Items Recommended – 21 Items
• Planning11.Merge Fire and Building inspection and reduce
combined number of inspectors by 2 vacant FTE – $104,545 / $209,090
13. Implement a .25% General Plan Maintenance and Implementation fee on all permits – $0 / $312,500
15.Restructure work assignments resulting in elimination of 2 filled FTE one in the General Fund and one in the Building Fund – $63,166 / $126,331
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Estimated FY12 Fiscal Impact - $4.3 M / FY13 and beyond $4.6 M
Items Recommended – 21 Items
• Police6. Defund five vacant non-sworn positions: 1 Police Spec
VI in Forensics; 1 Police Spec II in Records; 2 Security Rangers in Park Safety; and 1 Jailor – $200,000 / $441,460
• Public Works7. Lengthen tree trimming cycle for Slow Growing Trees –
$38,000 / $38,000
9. Reassign responsibilities resulting in elimination of 1 filled FTE – $0 / $85,595
14.Managed Savings though restructuring of facility maintenance services - $17,500 / $17,500
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Estimated FY12 Fiscal Impact - $4.3 M (FY13 and beyond $4.5 M)
Items Recommended – 21 Items
• Transportation8. Reorganize department responsibilities, resulting in
two filled FTE reductions - $0 / $257,000
• Water & Power19. Increase General Fund Transfer from Power Fund by
2% in FY2012 and 1% in FY2013 - $3,172,103 / $1,586,052
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Estimated FY12 Fiscal Impact - $4.3 M (FY13 and beyond $4.6 M)
Additional Power Fund GFT
• Authorized by City Charter sections 1407 and 1408
• Absent the additional transfer only $1.1 million of enhanced revenues and reductions will be realized in FY12
• Additional transfer will also provide a cushion for further unanticipated revenue declines in FY12
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Items Not Recommended – 9 Items
• Finance20. Increase Parking fines/penalties by $20 - $0 /
$350,000
• Fire24. Brown-out Fire Company when four or more absences
occur - $846,618 / $1,693,235
• Human Services & Recreation25. Eliminate After School Programs at 12 sites - $0 /
$1,197,850
26. Eliminate Flintridge Foundation Contract to serve as Institutional Home for Youth Violence Prevention $0 / $38,900
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Estimated FY12 Fiscal Impact - $1.6 M / FY13 and beyond $5.3 M
Items Not Recommended – 9 Items
• Planning27. Consolidate Community Planning & General Plan
Sections resulting in the reduction of 4 filled FTEs - $0 / $478,331
• Police21. Hold five sworn positions vacant: 1 Police Corp in
Patrol 2 Police Officers in Special Enforcement 1 Police Officer in Crimes against Persons 1 Police Officer in Crimes Against Property - $300,000 / $0
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Estimated FY12 Fiscal Impact - $1.6 M / FY13 and beyond $5.3 M
Items Not Recommended – 9 Items
• Transportation22. Return to stricter enforcement of parking regulations -
$500,000 / $1,000,000
23. Solicit advertising on ARTS buses and/or website - $0 / $50,000
• Misc. Departments28. Expand use of contract services and reduce current
staffing - $0 / $517,130
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Estimated FY12 Fiscal Impact - $1.6 M / FY13 and beyond $5.3 M
Additional Study Items – 7 Items
29.Relocate staff from non-City owned facilities to reconfigured City Hall – $ Unknown> Misc. Departments
30.Adjust medical benefits to cover what is actually needed and used e.g. employee or employee and dependents and only allow employees to receive 25% - 50% of allocated amount for deferred comp - $ Unknown
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Additional Study Items – 7 Items
31.Establish a benefits coalition for all represented group to standardize and control benefits costs - $ Unknown
32.Cap EOBF at current rate - $0 / $1,300,000
33.Employee pick up additional 1% of the employee PERS including safety employees - $0 / $775,000
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Additional Study Items – 7 Items
34.New employees pay full 8% of PERS - $ Unknown
• M3 Parking Tax - $ 2.5 - $3 million @10%> Transportation
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Recommendations
• Reduce appropriated expenditures and fulltime equivalents in the various General Fund departments and programs;
• Adopt a resolution increasing the amount to be transferred from the Light and Power Fund to the General Fund for fiscal year 2012 from 8% of gross revenues to 10%, and direct staff to prepare future General Fund projections utilizing a 9% transfer rate; and,
• Adjust estimated revenues in the General Fund to reflect revised estimates based on the revenue decreases experienced in FY11 and the increased revenues anticipated from the recommendations outlined in this report 26