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8/14/2019 1 31 09 City Budget Report
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ClaremontCityCouncilAgenda Report
TO CITYCOUNCL
FROM JEFFREYC PARKER
DATE JANUARY 31 2009
SUBJECT FISCALYEAR2008 2010 BUDGETREPORT
SUMMARY
Due to the current national economc situation the City of Caremont is experiencing areduction in revenuesbelow projections made during the budget process in the spring of2008 At this point staff is estimating the City will have a 1 5 mllion dollar shortfall at theendof fiscal year2008 09 and a 2 mlliondollar shortfall at theend ofFY 2009 10 unlessthe City acts nowto reduce expenditures accordingly This report details the proposedoperational changes to correct the FY 200809 budget shortfall and outlines the currentstatus and remaining gap forFY 2009 10StaffRecommendationStaff recommends that theCityCouncil
1 Approve the presented plan to balance the 2008 09 budget and appropriate the1 011 000 in onetime unanticipated revenueAttachment A
2 Receive and file the City Manager s draft 2009 10 budget plan which includesoperational reductions benefit reductions and organizational changesAttachment B
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CityCouncilJanuary 31 2009Page 2of4
Staff anticipates these revenueswill remain down in simlar amounts next fiscal year 0910 with the addition of a 2 5 increase in operating costs due to normal escalations incontracts and employee benefits
09 10Shortfall
1 220000800001000002000080000
RevenueTVDeSales TaxTransientOccupancy TaxHotel TaxBuildinq Permt FeesDevelopment FeesPlan Check Fees
The combination of these reductions in revenueand anestimated 500 000 increase inoperational costscometogether to produceCaremonts current 1 5M budget shortfallin FY2008 09and a 2M shortfall forFY2009 102008 09At this time staff anticipates a revenueshortfall of 1 5 million for FY 2008 09 In order tomaintain a balanced budget forFY 2008 09 AttachmentA presents the staff recommendedsolution for theshortfall
The first section of the tableoutlines onetime unanticipated revenuetheCity receivedfromgrants the state and operational changes that have occurred since thecompletionof thebudget
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CityCouncilJanuary 31 2009Page 3 of4
The first threesections ofAttachment B aresimlar toAttachment A with someadditionalreductions achieved by having a full yearof costs to reduce Additionally there is 118 000from theGeneral Fund Reserves to fully resolve theshortfallOver the last three weeks theAssistant City Manager and negotiating team have beenmeeting with the six employee associations to brief them onthe budget situation andprovide themwith options onhow to help reduce the budget beyond the operational cutsalready madeby theCity Manager
The fourth section shows the benefit reduction recommendations for each of theemployee groups basedontheir responses to theCity Manager s request to reducebenefit costs These reductions have not yet been agreed to by the employeeassociations The negotiating teamwill bemeeting with the various groups overthecomingweeks toget finalconcurrenceontheproposed reductionsThe fifth section shows the groups whose percentage of the cut will need to beachieved through organizational changes The City Manager will be meeting withDepartment Heads todecidewhat organizational changes will benecessary to reachthe required dollaramount from each group
Once the negotiating teamand theassociations havecometo tentative agreements onthebenefit reductions thesebenefit reductionswill cometo theCity Council forapproval Afterthe benefit reductions arefinalized by council theCity Manager will inform the council ofthe organizational changes thatwill be needed to resolve theshortfallPUBLIC
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City CouncilJanuary 31 2009Page 4of4
Submtted by Prepared by
ffiP
Jeffrey C ParkerCity Manager TonyRamosAssistant City Manager
Prepared by Prepared by
fMAdamPirrieFinance Manager
ColinTudorAssistant totheCity Manager
V CTudor COUNCL AGENDASTAFF REPORTS Budget Report 1 31 09doc
Attachments AttachmentAFY2008 09Budget PlanAttachment B FY2009 10 Draft Budget Plan
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AttachmentA CityoCaremontBudget Plan
FY 2008 09
200809Shortfal1 500000
Contributionfrom theGeneral FundReserveContributionof funds resulting from thereceipt of unanticipated onetimeGeneral FundrevenuesProp 172 Fundswerenot included inthe budget as itwas
anticipated thestatewoudtakethese fundswhich they did notRevenues have exceeded budgeted amounts bythis amount YTDTheleaseagreement withTriCitywasnotincluded in the budget due totheagreementbeing reached after theconclusionof the budgetNotbudgeted offsetgeneral fundcost for parkrangerprogramRevenueswll exceed budgeted amounts by thisamount YTDRevenueswll exceed budgeted amounts by thisamount YTDNotbudgeted thesearecurrentpayments fromthestate Fingerprintingand domesticviolenceAnticipated fundbalanceinPHTFundafterPergola project and transferof Theatretodeveloper
300000PublicWorks Permts
27000Y FSC Lease
53000Park Ranger Grant
46000 1 011 000Grading PlanCheck
10000Street RehabFees
317 000S890 StatemandatedCaims
8000PaduaHills TheatreFund
250 000
Remaining Shortfall 489 000Vacancies SavingsReceptionist H SMaintenanceCraftsperson II C SSeniorMaintenanceAssistant PT C SMaintenanceAssistant PT C SPark Ranger PT C SPark Ranger PT C SPlanning InternCD
38000None1700014000140001400012000
Vacancies Subtotal 109 000
Remaining Shortfall 380 000Page 1 of3
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AttachmentA CityoCaremont FY 2008 09Budget Plan
Operational Reductions SavingsAdmnistrativeServices Operating Budget Savings canbe identified inthefollowingaccounts BudQet SavinQs RemaininQProgramSupplies Reduction in Community Information budget 10400 6 500 2 013
elimnates budgeted onetimeCitywidemailingLegislative Activity Reduction infunding for Council legislative trips 6 500 3 500 3000
andconferencesContingency TheCityManagermaintainsacontingency fund 200000 42000 158000
inorder tobeprepared for unanticipated coststhroughout theyear Reduction of this fundmay 75000require staff to request funding from theCouncilfor unanticipated costs
Advertising Duetothe hiring freeze nonessentialpositions 23 500 12000 3 985thereis areducedneed for advertising jobs
Personne Exams Due tothehiring freeze nonessentialpositions 232 5 11 000 5 544thereis areducedneed for newhireexams
Community Development Operating Budget Savings canbe identified inhefollowingaccounts BudQet SavinQs RemaininQNusanceAbatement Basedonyear todateactuals it is anticipated 43900 22000 17 614
sufficient funds remaintomeet theneedContractServices Delays thetransferof plans toelectronicformat 362045 58000 70054 80 000project planning has beenworking onAny large
unanticipated projects will needto befundedbyCouncil appropriationCommunity Services Operating Budget Savings canbe identified inhe following accounts
BudQet SavinQs RemaininQProgramSupplies Reduction in CaremontHills Wlderness Park 33550 4 000 6 713
tours and reduces ability to replace signageContract Services Reduces several contractmaintenanceservices 885 951 34000 54710
including painting pressurewashing parkrepairs Thompson Creek trail plantservicelrental and reduction insport field 51 000maintenance Individua accounts being reducedretan sufficientfunding foressential service
Water Reduces thefrequency of parkwatering from3 198 112 13 000 104231times totwiceaweek
Page2f3
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AttachmentA City ofCaremontBudgetPlan
Operational ReductionsHumanServices Operating Budget Savings canbe identified inhe following accountsProgram SuppliesContract Services
Reduction inYACandTAC programsuppliesEliminates theUniversity of LaVernePsychological services counseling programJanitorial cost for Y FSC which is nowheresponsibility of TriCityTheproposed savings is theamount historicallyremaining in budget at theend of theFY
Meetings Travel This expenditure category is budgeted tocoverthecost of travel toand fromevents andconferences relevant to City operations All funds have beenconsolidated andanytraveland training requires theapproval of theCityManagers OfficeTraining TheCity budgets funds forthe developmentof employees through their participation intraining opportunities specific to their jobclassifications aswel as togeneral training to improvetheir knowledge and efficiency in delivering service toresidents All funds have beenconsolidatedand anytraveland training requires theapprovalof theCityManager s OfficeEquipment TheCitybudgets for thepurchase of equipment to replace pieces that areobsoleteorbroken increases the replacement timelinefor various pieces of equipment Nofunds remainMiscellaneous Reduces theabilityof thedepartments toabsorbunanticipated necessaryexpenditures Nofunds remainEDAC EDAC provides funding for employeedevelopmentand training Budgets for both generalEDACand EDACtraining programs totas 56000 24 000 EDAC 32000EDACTrainingEDACwll continuetocoordinateevents for staff al costs wll becoverby participant feesEmployee recognition events wll bescaledback Trainingwll continuewithsmallerworkshopsLeadershipAcademy wll not beheld
EquipmentMaintenance
YouthScholarshipsGrants
Operational Reductions Subtotal
FY 2008 09
Savings
BudQet Savinas RemaininQ40 285 8000 1473516500 16 500 0
18200 7500 6 906 43 000
36000 11 000 22073
137 526 40000 3343040000
68720 27000 21 295
27000
25 950 24 164 021 000
13 000 13000 013 000
56000 30000 15576
30000
380 000
Remaining Shortfall o
Page 3 of3
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Attachment B City ofCaremontDraftBudget Plan
FY2009 10
2009 10Shortfal2000000
Contribution fromthe General FundReserveContribution of funds resulting fromthe receipt ofunanticipated onetimeGeneral FundrevenuesY FSCLease The leaseagreementwithTriCitywasnot
incuded in the budget duetothe agreementbeing reached after theconcusionof the budgetprocess
79000
197 000
Contribution from theGenera FundReserve 118000
Remaining Shortfall 1 803 000Vacancies SavingsReceptionist H SMaintenanceCraftsperson II C SSeniorMaintenanceAssistant PT C SMaintenanceAssistant PT C SPark Ranger PT C SPark Ranger PT C SPlanning Intern C D
51 000None
21 00015 00015 00015 00012000
Vacancies Subtotal 129000
Remaining Shortfall 1 674000
Page 1 of4
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Attachment 8 CityofCaremontDraftBudget Plan
Operational ReductionsAdmnistrativeServicesOperating Budget Savingscanbe identified inthefollowing accounsProgramSupplies Reduction in Community Information budget
eimnates budgeted one timeCitywidemailingLegislative Activity Reduction in funding for Council legislative trips
and conferencesContingency TheCityManagermaintainsacontingencyfund
in order to beprepared for unanticipated costthroughout theyear Reductionof thisfundmayrequire staff to request funding from theCouncilforunanticipated costsDuetothehiring freeze nonessentialpositionsthere is aeduced need for advertising jobs
Advertising
Personne Exams Duetothehiring freeze nonessentialpositionsthere is areducedneedfor newhireexams
Community SurveyCouncil Commissioner Dinner
ElimnatedEvent wll bereduced to arecognition reception
City Letter CityLetterwll only bemailed2 timesayear Theother4 issueswll beproducedand copies left atCity facilities forpick upand theCitywebsitefordownload
CommunityOutreach NoCouncil handouts such as the sustainabilitybags fans at the4thof July andVillageVenturebooths
Community Development Operating Budget Savings canbeidentified inthe following accountsNusanceAbatement Basedonyear to dateactuas itis anticipated
sufficientfunds reman to meet theneed
ContractServices Delays thetransferof plans to electronicformatproject planning has beenworking onItasoreduces engineering s ability to respond to non
Page 2of4
FY 2009 10
Savings
Budaet Savinas Remanna100 0 6500 3900
6500 3500 3000
160000 70300 89700
23500 12000 11 500
154300232 5 11 000 122 5
20000 20000 07000 6 000 1 000
42 000 20000 22000
9000 5000 4 000
Budaet40000
SavinQs20 000
Remanna20000
298 100 7000050000 248100
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Attachment B City ofCaremontDraft Budget Plan
Operational ReductionsCommunity Services Operating Budget Savings canbeidentified inthe following accountsProgram Supplies Reduction in CaremontHillsWldernessPark
tours and reduces ability to replace signageReduces severa contractmaintenanceservicesincluding painting pressurewashing parkrepairs ThompsonCreek trail plantservicerenta and reductionin sport fiedmaintenance Individua accounts being reducedretan sufficientfunding for essential serviceReduces the frequency of parkwatering from3times to twiceaweek
HumanServicesOperating Budget Savingscanbeidentified inthefollowing accountsProgram Supplies Reduction in YACand TACprogramsuppliesContractServices Elimnates theUniversity of LaVerne
Psychological services counseling programEquipment Maintenance Janitoria cost for Y FSC which is now the
responsibility of TriCityYouthScholarships Grants Theproposed savings is the amount historically
remaining in budget at theendof theFYMeetings Travel This expenditurecategory is budgeted to coverthecost of travel to and fromeventsand conferences reevant to Cityoperations All fundshavebeenconsolidatedandanytrave and trainingrequires theapproval of theCity Managers OfficeTraining TheCitybudgets funds for the developmentof employees through theirparticipation in trainingopportunities specific to their jobclassifications as wel as to general training to improve theirknowledgeand efficiency in delivering service to residents Allfundshavebeenconsolidatedand any trave andtraining requires the approvalof theCityManager s OfficeEquipment TheCitybudgets forthe purchase ofequipment to replace pieces that areobsoleteorbrokenincreases the replacement timelinefor variouspieces of equipment Nofunds remanMiscellaneous TheCitybudgets for expected unanticipatedexpenditures that may ariseduring thecourse of theyear Reduces theability of the departments to absorbunanticipated necessaryexpenditures Nofunds remanEDAC EDACprovides funding foremployee development and training Budgets forbothgeneral EDACand EDACtraining programs totas 56000 24000EDAC 32000EDACTraining EDACwll continuetocoordinateevents for staff all costs wll becoverby participant fees Employee recognition eventswll bescaed back Training wll continuewithsmalerworkshops LeadershipAcademywll notbehed
ContractServices
Water
Operational Reductions Subtotal
Budaet37050
889839
Savinas2000
37 000
Remanna35050
852839
FY2009 10
Savings
50000
2 3 15 4 11 000 2 2 05 4
Budaet Savinas Remanna40285 8 000 3228516 500 16 500 0
18200 18200 0 53700
36000 11 000 25 000
136 584 72000 64 58472000
69555 35000 3455535000
27 310 27000 310 27 000
1000010000 10000 0
44 00056000 44000 12000
516 000
1 158000emaining Shortfall
Page 3 of4
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Attachment B
BenefitReductionsCaremontManagementAssociation CMACaremontProfessiona Association CPEASanBernardino PublicEmployeesAssociation SBPEABenefitReduction Subtotal
CityofCaremontDraftBudget Plan
Division and DepartmentHeadsPlanners and EngineersAdmnistrativeand TechnicalEmployees
Remaining Shortfall
Organizational ChangesCaremontEmployee Association CEACaremontPoiceManagementAssociation CPMACaremont PoiceOfficersAssociation CPOA
OrganizationalChanges Subtotal
Maintenance Sanitation MotorFleet and Sewer EmployeesSergeants Lieutenants Captains Org Changes Recommended byCPMAOfficers and Corporals
Remaining Shortfall
Page4of4
FY2009 10
23500070000253 000
558 000
600 000
100 000200000300000
600000
o