Alternative Proposal to Strategic Approach of Budget

8/14/2019 Alternative Proposal to Strategic Approach of Budget

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Alternative Proposal to Strategic

Approach of Budget Balancingfor Remainder of FY 2010 & FY

2011


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Summary of FY 2010 Strategic Approach

Budget Balancing (millions)

FY 2010 Revenue Shortfall $32.0

1. Current Projected Expenditure Savings (including vacancies) (2.0)

No Fund Balance Transfer (3.7)

No Supplemental Risk Management Fund Transfer (1.6)

Debt Restructuring (1.5)

Mass Transit Efficiencies (1.0)

Fee or Tax Increases (2.3)

Subtotal (12.1)

2. Departmental Program/Expenditure Reductions (8.4)

3. Employee Furloughs and Public Safety Pension Adjustment (4.1)

Low Income Subsidy Absorbed by utilities (0.5)

Subtotal (4.6)

Deficit Remaining $ 6.9


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Remaining Strategic Approach to Balancing FY2010 Budget

City Manager Recommendations Total = $5.9 million

Outside Agencies Reduction $3.0

ALS Transport Revenue 0.9

Professional Services Expenditures Reduction 0.2

Premium Pay Reduction (50% Proposal) 1.3*

Overtime Policy Change Savings 0.5


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Remaining Strategic Approach to Balancing FY2010 Budget

City Manager Recommendations Total = $ *5.9 million*/

Labor Councils Recommendations $ 7.85 million

Outside Agencies Reduction $ *3.0*/3.5

ALS Transport Revenue *0.9*/1.0

Professional Services Expenditures Reduction *0.2*/1.25

Premium Pay Reduction (50% Proposal) *1.3*/0.0(council direction)

Overtime Policy Change Savings *0.5*/0.0 (council direction)

- Implementing line-item cuts as proposed by council on 01/05/10 2.1


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Potential Remaining Deficit

As of 01/5/10= $ 6.9 million

City Manager Recommendations Total = $ *5.9 million*/

Labor Councils Recommendations $ 7.85 million

Remaining Deficit $ *-1.0 million*/+0.95 million


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REVISED Strategic Approach to Balancing FY 2010 Budget

All cost savings from cuts/reductions and revenues

implemented in Box 1 will be continued in FY 2011

to address the projected $29 million deficit.

Outside Agencies $1.0 $2.81 to 4.36

ALS Transport Revenue 2.9 3.6

Misc. Professional Services 0.2 3.75

Premium Pay Reduction 3.6 0.0

Overtime Policy Change 1.3 0.0

Total = $9.0 million Total = $10.16 to 11.71

According to this presentation by the City Manager & staff, a 60%/20% reduction in outside agencies for this fiscalyear (5 months) saves $3.0 million while the same reduction of 60%/20% reduction for the entire fiscal year FY 2011saves only $1.0 million! See next slide for further details on outside agencies cuts.


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Three Year View of Potential Deficits

(millions) as of 1/12/10 Recommendation

FY 2010 FY 2011 FY 2012

Projected $ 6.9 $ 29.4/ 28.45 $ 11.4/ $5.09

O/A Reduction (3.0)/ 3.5 (1.0)/ 2.81 to 4.36

ALS Revenue (0.9)/ 1.0 (2.9)/3.6

Prof. Services Red. (0.2)/ 1.25 (0.2)/ 3.75Premium Pay/Furloughs (1.3)/ 0.0 (3.6)/ 0.0

Overtime Policy (0.5)/ 0.0 (1.3)/ 0.0

Implementing Council Plan from ?s (0.0)/ 2.1 (0.0)/ 4.2

Deficit $ -1.0/ +0.95 $ -20.4/ -14.09 $ 11.4/ $5.09


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REFERENCES:

Slides #1-3 numbers as presented by City Manager & staff at Mayor & Council on 01/12/10.

Slide #4-8 numbers in red as presented by City Manager & staff at Mayor & Council on 01/12/10Slide #4- Adjustments referenced as follows:

1. Outside Agency Reduction (includes half of the 900k directed by Councilwoman Scott asan offset from MTCVB to TCC).

2. ALS Transport Revenue according to both TFFA & TFCA on 01/08/10

3. Professional Services Reduction- represents 50% of number yet to be paid out aspresented by City Manager on 01/08/10

Line-items- Response by City Manager to Council questions on 01/12/10:

35K Parking

270K Membership not including 150K essential membership

160K Represents 50% travel budget

250K Supplies budget reduction

309K Cell Phone reduction

90K Initiate a 4/10 schedule in city departments

72K Take Home Car allowance

95K Vehicle Allowance

1.6M Transit Fare Increases

1.3M Zoo Rate Increases

= 4.0M FY2011, 2.0M FY2010

Documents

Alternative Proposal to Strategic Approach of Budget