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8/3/2019 FY2013 November Retreat
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CRACKS IN THE HULL
FY2013 November Retreat
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Transition
Economic Forecast = Steady/Flat Flat = Unsustainable Unsustainable = Cracks in the Hull Back to the Shipyard
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Cracks in the Hull
Since Recession Began in Fall 2008
Reduced General Fund Operations by 20%
Reduced Utility(Water & Wastewater) FundOperations by 7%
Reduced HURF Fund Operations by 13%(43% total Fund)
Library Fund grew by 8%
Reduced Overall Personnel by 13%Review Exhibit 1
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Exhibit 1
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Cracks in the Hull
Result = Impacts on the sustainability ofInfrastructure, Facilities, Equipment, Personnel& Services
FY2011 Transmittal Letter & Graph (Exhibit 2) No or Limited Revenue Enhancement Two StrategiesEfficiency; orService levels
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Cracks in the Hull
City has focused on efficiency Reduced in places where workload has stayed flat or
grown Courts Police Fire Utilities Economic Vitality IT
Management Services HR Legal City Clerk
Reduced staff in places where workload has dropped Community Development
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Cracks in the Hull
Efficiency How do we compare?IBM White Paper Smarter, Cheaper, Faster (Ex.
3)
Survey of 100 largest U.S. citiesAverage employees 657/100,000 for Core ServicesFlagstaff 675/100,000 for Core Services
Average expenditures for Core Service=$702/Capita
Flagstaff $623/capita (may explain 19% below marketpay)
Not adjusted for Cost of Living
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Exhibit 3
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Cracks in the Hull
Further Efficiency IdeasInstall radio read metersAgenda software for ClerkAuto attendant for switchboardFire & Police time entry via cloud computingContinual evaluation of workload to staffing ratios
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Cracks in Hull
Will continue to push the envelope onefficiency but limited options remain.
That leaves service cutsPerformance Measures (Inputs, Outputs,
Outcomes)
Look at full menu of services
Re-prioritize and re-allocate Fiscal Policy PrioritiesExhibit 4
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Exhibit 4
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Cracks in the Hull
FormatVisible services and goalsService levels vs. actualsService level policy choicesConsequences of choices
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INFRASTRUCTURE
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Infrastructure
Streets-Service Levels Visible Services & Goal ALL HURF FUNDEDSnow Plowing Plow all streets within 18 hours of
end of storm if less than 12 inches; De-icer
ProgramStreet Maintenance Minimum OCI of 70Pot Hole Repair Repaired within 24 hours of
reporting
Street Sweeping Downtown 5 day/wkSouthside 3 days/wkArterials 1/wkResidential 2/mo
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Infrastructure
Streets Actual Service levels relative to actual
Snow Plowing Plowing & De-Icer Achieved Requires $150,000 transfer from GF for De-Icer
Street Maintenance OCI range from 32-100 w/Avg=76.4 293 out of 978 segments under OCI of 70 $500,000 from GF for O&M $2.8 Million in 2008-2009 vs $893,000 in 2011-2012 $50 million to catch up Need between $4-$8 M /Yr for maint. & rebuilds
Pot Holes Achieved 99% of time Street Sweeping
$10,000 GF transfer for street sweeping Downtown 5 days/wk Southside 3 days/wk Arterials 1 day/wk
Residential 1 day/month
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E. Old Rt. 66
ADOT Yard to I-40OCI = 32
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Elden St.
Aspen to Cherry
OCI = 41.3
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San Francisco
Columbus to ForestOCI = 50.9
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Beaver St.
Butler to FranklinOCI = 60.1
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Sparrow
Foxglenn to 4th St.OCI = 69.8
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InfrastructureStreets - Choices Service Level Choices Snow Plowing No plowing of residential under 4 inches ($135,000 savings) Pay $50,000 for de-icer from Stormwater Less for DRIP
program
Street Maintenance At status quo, chip seals increase from ~10 to 14-15 years At status quo, overlays increase from ~15 to 20+ years Minimum OCI will fall below 70
Street Sweeping w/ de-icer - $94,000 Downtown - 3 days per week & as needed Southside 2 days per week & as needed Arterials 1 day per week & as needed Residential once per quarter & as needed
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InfrastructureStreets - Consequences
ConsequencesSnowplowing More complaints, more vehicles stuck, packed snow
turning to ice
Street Maintenance When a streets OCI drops below 70, they deteriorate
faster and are more expensive to fix
Street SweepingMore dust in the air; dirtier streets, rocks that crack
windshields
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InfrastructureUtilities Service Levels
Visible Services & Goal Utilities FundedWater Lines - Replace 2 miles of annuallySewer Lines - Replace 1 mile of annuallyWater Meters Replace every 10 yearsReclaim Water Produce A+ from all WWTPWater Resources Meet future demand
No Violations Make O&M and CapitalImprovements to meet all regulations
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InfrastructureUtilities - Actuals
Service Levels Relative to Actuals Actual Revenue $800,000 under model projection for
FY12
Water Lines 0 miles in FY11, 0.5 FY12-13; 1 FY14; 2FY15 Sewer Lines 0 in FY11, 0.2 12, 0.4 13-14; .6 15-17;1
20
Water Meters 0 in FY11, 3% in FY12, $1.5 M toCatch-up
Reclaim Water Achieved Water Resources Paying $82,000/yr to fund ADWR. Demand is expected to exceed 100 year water supply in ~20
yrs
Stipulation with Navajo achieved for Red Gap supply.
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Rate Model Error
Cost/Flow = Rate Calculated for water separate from sewer Water is within model tolerances Sewer was off substantiallyInvestigation revealed the flow number used was
in error
Vendor can produce no documentation of why #changed, only when it changed
Vendor accepts no liability since we accepted themodel
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InfrastructureUtilities - Choices
Service Level Choices Model Error Defer Operational Capital & no Rio in FY12 Correct the rate for July 1, 2012
Water Meters Catch-up by imposing a ~$1.31 per month surcharge Replace 10%/yr starting in 2016 - Requires $300,000/yr
Water Resources If State renews its $82,000 surcharge, pass it on as $0.36
per month per account Begin financial planning for Red Gap now
PPA Institute only big ticket projects with minimal ROI, but
diversified.
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InfrastructureUtility - Consequences
ConsequencesCommunity resistance to increased charges new
rate charges just took effect January 1, 2011
Generally people paying less than projected sonot the hit that was expected
Red Gap discussion will shape Regional PlanDiscussion
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FACILITIES
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FacilitiesBuildings Service Levels
Visible Service Levels & GoalsFacilities Condition Index Average of 85%Custodial costs of buildings - $500,000Custodial cost per sq.ft. (BOMA Benchmark)-
$1.50
Utility & maintenance costs per sq.ft. of officebuildings - $8/sq.ft
Includes custodial
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FacilitiesBuildings - Actuals
Service Levels vs. ActualsFacilities Condition Index CY11 Average of 65%Maintenance appropriation dropped from $500,000/yr
to $200,000Custodial costs of GF buildings - $408,000Custodial cost per sq.ft. actual -$1.39Utility costs per Sq.Ft. of office buildings $5.83Includes custodial
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FacilitiesBuildings - Choices
Service Level ChoicesLower StandardReduce Facilities Index to 70%
Fewer BuildingsEliminate Chase Basement lease
Better BuildingsCourt HouseMaintenance Facility
Restore Maintenance LevelsContinue to pursue APS credits on Alt Energy
Projects
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FacilitiesBuildings - Consequences
ConsequencesCosts money to break leasesLess positioned if/when growth returnsIncreased funding maintains what we have &
avoids future large expenditures
Better Buildings may require bond election toextend (not increase) property tax.
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FacilitiesParks Service Levels
Visible Services & Goals GF & BBB FundedNumber of parks & acres per park per 1,000 (96
Goal)
Neighborhood 1.01 acres/1,000Community 1.42/1,000Regional 2.03/1,000Specialty 1.06/1,000
Maintenance level of parks Avg. = 2Amenities in Parks Playgrounds, Ramadas, Ball
fields
Miles of FUTS 1 mile /yr
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FacilitiesParks - Actuals
Service Levels relative to actualsPark acres/1,000 peopleNeighborhood - 0.38/1,000Community - 0.84/1,000Regional 0.87/1,000Specialty 4.06/1,000No Neighborhood Park west of Milton and N of I-40No Community Park West of Ft. Valley RdNo Regional Park in South/Southwest of City
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FacilitiesParks - Actuals
Service levels relative to activeMaintenance General Fund Parks - Avg = low 4BBB Parks & Medians = Avg = 3
No new amenities/facilities in last three yearsMiles of FUTS Trails/yr = AchievedMultiple funding sources (Bond, BBB, Transportation
Tax)
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FacilitiesParks - Choices
Service Level Choices Re-purpose Specialty Parks to Neighborhood,
Community or Regional Parks
Decommission/Transfer/or Re-purpose to PassiveParks ($25,000) Exhibit 5 & Exhibit 6 Offer to HOAs Sell park to Open Space
Increase maintenance level at remaining parks Remove turf at Senior Center, Thorpe Park tennis
court, & Library (>$3,000 savings but 50% water)
No maintenance of residential downtown trees
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Exhibit 5
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FacilitiesParks - Consequences
ConsequencesRatios of parks to goals drops further below
average
Argument decommissioning not saving enough tojustify
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EQUIPMENT
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EquipmentFleet Service Levels
Not a direct service level but indirectEx. street sweepers; police cars, snow plows
No replacement fund. Fund as revenuesallowed.
GF $500,000/yr in 2008 vs. $178,000/yr in 2012GF $286,000/yr FY13-FY18
Fire trucks separate Started fund with sale of Sawmill South ($1M
+), but 1x
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EquipmentFleet - Inventory
Fund # Rolling Stock Purchase $ Est.Replacement $
GF 261 $11,127,975 $11,520,521
Solid Waste 66 $ 9,261,696 $11,438,868
Utilities 87 $ 3,288,305 $ 5,357,400
Airport 17 $ 2,227,831 $ 5,863,000
Streets 115 $ 8,325,450 $22,565,000
Total 546 $34,231,257 $56,744,789
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EquipmentFleet Choices & Consequences
Service Choice Start Vehicle Replacement Fund Determine life cycle of vehicle
Charge rent/replacement fee of vehicle per year Distribute $286,000 to start Distribute 1x $ after immediate Fire purchases At 10 yr average life span need ~$1M/yr
Consequences No vehicles can be purchased because money
distributed everywhere
Divisions have to cut something else to replace vehicle leads to further service cuts
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PERSONNEL
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PersonnelService Levels
Visible Service Levels & GoalsQuality of Service Provision Excellent or Good
Job as indicated in Citizen Survey
Compensation & Benefits Middle of the MarketTraining Maintain Professional TrainingUniform Present Professional AppearanceStaffing - Adequate Staffing per Service. Includes
overtime for Police, Fire, Snow Removal, &Utilities
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PersonnelActuals
Service Level vs. Actual Quality of Service 77% Excellent or Good; 21% Fair
or Poor(2009 Citizen Survey)
Compensation & Benefits Stacking of negatives 19% below Market (2008 survey) Pay cut in May 2009 No raises since 2008 No market adjustments Decrease in benefits Family Premiums & Deferred Comp Decrease in take home pay More functions Less appreciation Anti Government Movement
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Personnel
Countermeasures City Manager Awards Pension offset to salaries Triggers in place Fiscal policy priorities provide hope Better communication
Helps but Still Increase in grievances Increase in legal complaints Good people go elsewhere
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PersonnelActuals
Service Levels vs. ActualsTraining 0-100% of 2008 level; 32% averageUniform 0% - 50% of 2008 level; 33% averageStaffing13% reduction = Match IBM SurveyOT cut from $1.7M/yr to $1.3M/yr
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PersonnelChoices
Service Level ChoicesFurther staffing reductionsRestore 2009 pay cutAchieve minimum of 25% of 2008 training levelAchieve minimum of 25% of 2008 uniform
allowance
Restore $50,000 in overtime Consequences negatives noted previouslyBetter morale, training, appearance, & quality
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OTHER SERVICES
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Public SafetyPolice Service Levels
Visible Service Levels & GoalsPart 1 Violent Crime 4.0/1000Property Crime continued reduction to 34/1,000Part II Drug Arrests 6.6/1,000Domestic Violence decrease reports 5%Reduce Traffic Collision 5% from CY2007Average Response Times 6.29 minutesFavorable Customer Service Rating 80%
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Public SafetyPolice - Actuals
Service Levels vs. Actuals (CY10)Part 1 Violent Crime 4.0/1000Property Crime 46/1,000andup 1%Part II Drug Arrests 10.6/1,000Domestic Violence down 3.8%Reduce Traffic Collision down 27% from
CY2007
Average Response Times 4.46 minutesCustomer Service Rating 81% (2009
Community Survey); 87% (Ongoing CustomerSurvey)
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Public SafetyPolice - Choices
Service Level ChoicesCOPS Grant expires in FY2014 6 officer
positions
Eliminate Federal Assignments FBI, MarshallsEliminate DARECOPS Grant for Southside/Inc parking
enforcement
ConsequencesIf grant positions not funded service level
decrease
Public push-back on no DAREMorale issues in Department
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Public SafetyFire Service Levels
Visible Services & GoalsALS personnel on equipment 90% of timeResponse times, initial response 5 min 90% of
time (includes turnout and travel)Response times, full deployment 9 min 90%Fire loss less than 2 tenths of 1 percentLimit wildfire size 5 acre avg. treated; 20 acres
untreated
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Public SafetyFire - Actuals
Service Levels vs. ActualsALS Personnel on Equipment 96% of timeResponse times, initial response 5 min 62.8% of
time (includes turnout and travel)Response times, full deployment 9 min 75% of
time
Fire Loss 0.04% lossLimit wildfire size 0.27 acre avg. treated; 0.1
acres untreated
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Public SafetyFire - Choices
Policy ChoicesReduce Station 4 from Engine to RescueReduces ALS service to BLS (related 2 tier)Add non-emergency service unit A.K.A Rolling
Medic
Fuel Management Grant - 50% expires in FY13 ConsequencesLonger response to fire calls in District 4Rely on Guardian for ALS service
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Public SafetyCourts- Service Levels
Visible Service Levels & GoalsRight to a speedy trialCase Processing Measurement ABA National
Standard: 100% disposed in 90 days.Backlog Measurement Pending Case Ratio-
National Standard: .25 (# pending/filings yr.).
Workload Measurement- # of Citations per FTE Goal is 2,200/FTE.
DV Recidivism low as possibleRecidivism of Drug Offenders low as possible
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Public SafetyCourts Actuals
Service Levels vs. ActualRight to a speedy trialCase Processing Measurement Currently 76%
disposed in 90 daysBacklog Measurement Pending Case Ratio
Current Ratio 1.071 CY11 (4x standard)
Workload Measurement Current # of Citations perFTE - 2,709/FTE CY11
DV Recidivism 5.2% CY11Recidivism of Drug Offenders 4.6% CY11
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Public SafetyCourts - Choices
Service Level Choices Maintain Status Quo Workload varies depending upon
officer and grant activity;
Reallocate Resources by using dedicated court funds toincrease Judicial Specialists thus reducing ratio; Increase Efficiency through Technology- Requires IT
Specialist; Increase Resources - Create a Civil Division.
Consequences of Choices Status Quo Backlog will continue to increase unless there
is a significant decrease in work load. Increased backlogwill force the court to prioritize case by case type (civilcases will not be processed).
Reallocate Resources Reduce backlog and increasespeed. Additional staffing is money cant spend on newfacility
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Community DevelopmentService Levels
Timely completion of Planning Studies 90%30 day review of Development Apps 90%No Surprises after DRB 0Capital Projects on schedule and budget ->90%Traffic Studies and work orders 80/yr totalNo Infrastructure retests/warranty work - >95%Applicant satisfaction with Planning 90%New Affordable Housing Units 10%/yr
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Community DevelopmentActuals
Timely completion of Planning Studies Yellow*30 day review of Development Apps 92.3%No Surprises after DRB 0Capital Projects on schedule and budget -100%Traffic Studies and work orders 53 TotalNo warranty work on Infrastructure 99.9%Applicant satisfaction with Planning 95%New Affordable Housing Units CY10: 22%
Ownership (12) and 100% Rental (56)
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Community DevelopmentChoices
Service Level ChoicesIdentify a total of $50,000 in GF savingsCombine Comprehensive/Neighborhood Planning
and Zoning Administration given completion ofprojects
Analyze Housing/Public Housing ProgramsContinued monitoring of workload/FTE
ConsequencesFewer community planning servicesLess capacity for attaining housing units
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Community EnrichmentService Levels
Visible Service Levels & GoalsProvide Recreation Programs Core, Secondary
& Support Recreation Programs
Provide Recreation Facilities 5 facilitiesCustomer Satisfaction 90% satisfiedCost Recovery Direct Expenses100% adult programs
50% Youth Programs70% Aquaplex
Library Satisfaction 88%
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Community EnrichmentActuals
Service Levels vs. ActualsProvide Recreation Programs AchievedProvide Recreation Facilities AchievedCustomer Satisfaction Achieved 90%Cost Recovery Direct Expenses90% adult programs85% Youth Programs [100% equals 50% cost
recovery]64.5% Aquaplex
Library Satisfaction 97%
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Community EnrichmentChoices
Service level ChoicesClose Aquaplex on TuesdaysRe-purpose CogdillRedirect BBB Recreation Capital to Flag Rec
Center
Full cost recovery for J. LivelyReduce Senior Recreation CoordinatorsReduce Support ProgramsReduce Library HoursReduce Library Materials
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Community EnrichmentConsequences
ConsequencesQuestion about Annual Pass fees at AquaplexNon-City programming in underserved areaLack of Capital to fund recreation facilities
improvements
Complaints on fees at J. LivelySupport programs may not be offered in
community.Complaints about Library Access
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Service Expansion
Rio de Flag COPS Grant Snowplay Property Maintenance Ordinance
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Re-Allocation
Fiscal Policy Priorities Cracks in the Hull Maintain what we Got
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Re-Allocation
Ideas considered but not recommendedEliminate one Deputy City ManagerConsolidate Police & Fire into Public Safety
DivisionReduce Contributions to agencies 50% if >
$25,000
Distribute BBB Arts & Science Funds w/ City Staff
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Re-Allocation
Proposed Service Reduction Possible Dollars
No Residential Snow Plowing
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Re-Allocation
Proposed Service Reductions Proposed Re-allocation
Increase Aiport PFCs $100,000
HURF Reduction as it grows $ ?
Decommission/Repurpose Parks $25,000
Merge Comp Planning, NeighborhoodPlanning, & Zoning or DecreaseHousing
$50,000
Re-allocate DARE to Parking in 2014 $ 0
Eliminate Brownfield Program
Reduce Materials at Library $30,000
BBB Funding of Flag Rec $200,000
Re-allocate $50,000 from Stormwater $50,000
Total $1,349,000
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Re-Allocation
Possible Re-allocations Total Need Re-AllocatedDollars
Maintain St O&M Arterials &Collectors
$4- 8 Million/yr$50M catch-up
$200,000
Increase Facility Funding $300,000/yr $100,000
Increase Vehicle Replacement Fund $500,000/yr + Fire $150,000
Increase Park Maintenance onFewer Park
$500,000/yr $100,000
Restore Paycut (Merit Pool ifTrigger)
$450,000 $450,000
Restore Train to 25% $390,000 (100%) $17,000Restore Uniform Allowance to 25% ? $20,000
Restore Some OT for Public Safety &Utilities
$400,000 $50,000
Funding of 6 officers in FY14 $435,000 $145,000
Increase Funding of Outside Legal $100,000GF Total $1,332,000
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Re-Allocation
Possible Re-allocations Total Need Re-Allocated Dollars
Replace Water meters withradio Reads
$1.5M catch-up$300,000/yr 10% after
$1.31 monthly surchargefor 5 yrs for catch-up
Courts 1.25 JudicialSpecialist
$182,750 (4.5 J.S.) $53,750 [From CourtCollections]
Courts IT Specialist $60,000 $60,000 [From CourtCollections]
Courts Pursue PPP for
New Courthouse
~$12M $unknown
Courts New CourthouseMaintenance
$240,000 (@$6/sqft) $200,000 [FromImprvmnt & Collections]
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DISCUSSION
Whats in the range of possibility?