A Community Conversation

Shared Services

City Budget and ServicesEffects of the Financial Crisis on Cities

Major Revenue SourcesWhere the Money GoesFinancial ChallengesWhat Cuts We’ve Made

Major Revenue Sources

• Vary by City• Top categories in most cities are Property Tax

and Sales Tax

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Typical City: Annual General Fund Expenditures

Econ & Comm Devel

5%

Fire21%

Human Resources

2%

Library5%

Parks & Recreation

11%Police37%

Public Works8%

Nondept.3%

General Government

8%

City14 - 21%

Special Districts

7%

Local Schools45%

County27%

Where Your Property Tax Goes

State of California

5¢

Cities 1¢

County-wide

Trans-portation

1/4¢

Measure A

Trans-portation

1/2¢Public Safety

Prop 172 1/2¢

County Health & Welfare

1/2¢SamTrans 1/2¢

8-1/4 Cents on Every Dollar Spent

Where Your Sales Tax Goes

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1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12$0

$5

$10

$15

$20

$25

Redwood City Sales Tax Revenue FY 1998-99 to FY 2011-12 in millions

77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 190

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

City of San Mateo Property Transfer Tax

Historical Updated Projections Constant Dollars

Fiscal Year

The Financial Environment

• All revenue sources reducing or growing at a lesser rate– Property Tax– Property Transfer Tax– Sales Tax

• Downturn in Planning and Construction activity• High unemployment• State ongoing takeaway of City funds

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How Have We Responded to the Financial Crisis?

• Reduced operating and administrative costs – restructured services, eliminated management and supervisor positions, increased technology, improved efficiencies

• Reduced compensation costs – lower retirement benefits, increased employee participation in health and retirement costs

• Implemented different ways to provide services – contract out or share services with other cities

What types of service cuts have we already made?

• Reduced street repair and reconstruction• Reduced sidewalk repair• Closed recreation centers• Reduced library hours• Cut back on police task forces• Reduced youth and senior programs• Increased turnaround time for building inspections

and code enforcement

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Closing the Gap: RC Projected General Fund Revenues & Expenditures*

12*If no Council action.

FY 2011-12 to FY 2015-16 (in thousands)

2011-122012-13

2013-142014-15

2015-16 72,000 74,000 76,000 78,000 80,000 82,000 84,000 86,000 88,000 90,000 92,000

Revenues Expenditures

Gaps vary by city from $2M to $6M

Our Conversation this EveningSusan Loftus, San Mateo City Manager

• Shared Services– What is it?– What we’ve done, what’s planned– What are some of the opportunities and

obstacles?

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Shared Services

• What is it? All of the ways that cities can

work together to jointly provide public services more efficiently and effectively

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Identify and Prioritize

Essential Services

Continue to reduce services, staff, and compensation

Explore alternative ways to deliver services

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Our Future Choices

Looking for Efficiencies :

How can we provide services in a more cost effective and efficient manner?

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Internal within a City

Merge Existing City Departments•Library and Recreation Services – Daly City•Recreation, Marina and Aquatic Services – Brisbane

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Contracting with Private Providers• Animal control services • Landscape maintenance• Planning, engineering, building inspection• Recreation classes• Janitorial services• Street repair and reconstruction• Facility maintenance• Street sweeping services• Waste Water Treatment Plant

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Shared Services Across Cities/County• Peninsula Library Services• Fire

• Emergency Medical Services – Joint Powers Agreement

• North County Fire Authority: Shared Fire Management – Daly City, Brisbane, Pacifica

• Foster City/San Mateo Shared Fire Services• Redwood City provides fire service for San Carlos• Hillsborough & Burlingame formed Central County

Fire Authority

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Shared Services (cont’d.)• Police

• San Carlos & Half Moon Bay contract with Sheriff• Brisbane contracts with City of San Mateo for

Dispatch• Pacifica contracts with City of South San Francisco

• CCAG – City & County Association of Governments• Human Resources

• Training Consortium• Joint Recruitment for Police and Fire

• Technology Services• Software Services between RC and Burlingame• Geographic Information Mapping Services

What other shared services are being considered?

• Police Dispatch (North County, Central County, and South County)

• Fire Department Mergers (Millbrae, San Bruno, Hillsborough, Burlingame)

• Additional Recreation Service Consolidation – adult sports league, teen services, and class registration (Foster City, San Mateo, and Belmont)

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Possible advantages of shared services

– Reduces redundant costs– Takes advantage economies of scale– Can provide a higher level of service– Higher level of resources more affordable– Improve employee attraction and retention – More effective regional and – sub-regional decision-making

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Obstacles for shared services Resistance to change – organization and community Questions about amount, permanency, and

cost/benefit of savings Concern about loss of influence over service and

priorities City and/or organizational culture conflicts Bargaining groups

• Degree varies with shared services option

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What can you do next?– Look up your city's budget online to learn more

about service delivery– Share this discussion with others in your

community– Visit a City Council meeting and convey your

thoughts about shared services– Join a Citizens Academy, if you haven’t already– Come to a future forum about this topic

Thank you for your participation!

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Extra slides for questions

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Typical General Fund Revenues

Property Tax33%

Sales Tax13%

Utility Users Tax10%

Other Taxes6%

Franchises5%

Fines and Forfeitures

4%

Charges and Fees

6%

Interest Earned

4%

Miscellaneous9%

Interfund Transfers

10%

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