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February 3, 2009 City of Glendale - Finance Department 1 Budget Balancing Strategies February 3, 2009.

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Presentation on theme: "February 3, 2009 City of Glendale - Finance Department 1 Budget Balancing Strategies February 3, 2009."— Presentation transcript:

1 February 3, 2009 City of Glendale - Finance Department 1 Budget Balancing Strategies February 3, 2009

2 City of Glendale - Finance Department 2 Surplus/ Surplus/ Resources Expenditures (Shortfall) Resources Expenditures (Shortfall) Submitted Budget$164,569,000 $174,537,000 ($9,968,000) Revised Revenues 2,074,000 2,074,000 Revised Revenues 2,074,000 2,074,000 Department Reductions (5,905,000) 5,905,000 Department Reductions (5,905,000) 5,905,000 Other Vacancy Reductions (754,000) 754,000 Other Vacancy Reductions (754,000) 754,000 Changes in Transfers 1,517,000 (650,000) 2,167,000 Changes in Transfers 1,517,000 (650,000) 2,167,000 Citywide Reductions (432,000) 432,000 Citywide Reductions (432,000) 432,000 Unavoidable Expenses 1,316,000 (1,316,000) Unavoidable Expenses 1,316,000 (1,316,000) Adopted Budget $168,160,000 $168,112,000 $ 48,000 General Fund - Overview Budget Adoption Recap

3 February 3, 2009 City of Glendale - Finance Department 3 General Fund Impact of Adopted Reductions Reduction of 43 full-time vacant positions and two filled positions Elimination of various programs/services –SRO Middle Schools –Portion of COPPS –Downsized to One 3-person Engine in Fire Dept. –Cancellation of Fire Recruit academy –Reduction in Recreation Program hours –Reduction in Library services Various Maintenance and Operations reduced or eliminated

4 February 3, 2009 City of Glendale - Finance Department 4 Economic Outlook State of California Budget Crisis IOU’s already being issued State grants are being frozen $42+ billion budget gap projected for 2009/10 Complete impact to Glendale remains unknown Sub-prime Mortgage Collapse Credit/Banking Crunch Stock Market Slide Low consumer confidence Unemployment Increasing – record number of layoffs

5 February 3, 2009 City of Glendale - Finance Department 55 Glendale's Fiscal Position Glendale’s Fiscal Condition relative to Others 3rd Qtr Sales Tax receipts up slightly {2.8%} vs. L.A. County Average decrease of {3.1%}  4 th Qtr Sales Tax unknown until April 2009 Stable property tax base  No less than 2% increase in Assessed Valuation Broad retail base; addition of Americana, but loss of Mervyns, Circuit City and others Reduction in construction related revenues Reduction in Auto Sales

6 February 3, 2009 City of Glendale - Finance Department 66 Ongoing Efforts….. Continue efforts in the following areas: Closely follow the economy and impacts to Glendale Control spending; evaluate and implement cost reduction strategies Continue to develop and propose new revenue sources Monitor State proposals that have impacts on Glendale; be prepared to address through various means

7 February 3, 2009 City of Glendale - Finance Department General Fund – Resources Revised Projections Sales Tax$(3,032,000) Occupancy Tax (100,000) Other Taxes (300,000) Licenses & Permits (1,620,000) Motor Vehicle in Lieu (600,000) Charges for Services (1,250,000) Intergovernmental Revenues (25,000) Fines & Forfeitures (340,000) Use of Money & Property (869,000)  Scholl Canyon Assessment (320,000) $(8,456,000) $(8,456,000)

8 February 3, 2009 City of Glendale - Finance Department 8 Surplus/ Surplus/ Resources Expenditures (Shortfall) Resources Expenditures (Shortfall) Adopted Budget $168,160,000 $168,112,000 $ 48,000 1 st Quarter Adjustments 20,000 20, st Quarter Adjustments 20,000 20,000 - Revised Resources (8,456,000) (8,456,000) Revised Resources (8,456,000) (8,456,000) Projected YE Shortfall Before Adjustments $159,724,000 $168,132,000 $(8,408,000) Before Adjustments $159,724,000 $168,132,000 $(8,408,000) General Fund - Overview Budget Balancing Recap

9 February 3, 2009 City of Glendale - Finance Department 9 General Fund – Proposed Adjustments to Balance “Hard” hiring freeze – net savings $ 2,100,000 Additional M&O Reduction Efforts - estimate 600,000 Close Passport Services - net savings 55,000 Eliminate 24 Vacant Positions 1,850,000 Suspend General Fund Transfer to CIP 1,300,000 Use of accumulated Gas Tax to relieve GF contribution for street projects 1,500,000 contribution for street projects 1,500,000 Budget & account for all Project Mgmt staff in the CIP Fund 740,000 staff in the CIP Fund 740,000 Increase Scholl Canyon waste shed to offset anticipated losses 320,000 anticipated losses 320,000 $8,465,000 $8,465,000

10 February 3, 2009 City of Glendale - Finance Department 10 General Fund – Additional M&O Reduction Efforts Various energy savings measures already implemented All personal appliances eliminated Office lights turned off at facilities Building Maintenance shifted to day schedules Fleet Management consolidation and elimination Equipment Replacement/Usage Take-home vehicles Reduction in fleet size Reduce fuel consumption Freeze travel and training

11 February 3, 2009 City of Glendale - Finance Department 11 Surplus/ Surplus/ Resources Expenditures (Shortfall) Resources Expenditures (Shortfall) Adopted Budget$168,160,000 $168,112,000$ 48,000 1 st Quarter Adjustments 20,000 20, st Quarter Adjustments 20,000 20,000 - Revised Resources (8,456,000) (8,456,000) Revised Resources (8,456,000) (8,456,000) Projected YE Shortfall Before Adjustments$159,724,000$168,132,000($8,408,000) Before Adjustments$159,724,000$168,132,000($8,408,000) Actions Already Implemented (2,755,000) 2,755,000 Add’l Actions Recommended 1,500,000 (4,210,000) 5,710,000 Projected YE Budget$161,224,000$161,167,000 $ 57,000 General Fund - Overview Budget Balancing Recap

12 February 3, 2009 City of Glendale - Finance Department 12 General Fund – Preview Changes in Resources Changes in Resources from ‘08-’09 Adopted to ‘09-’10 Projected: Estimated Sales Tax decrease (503,000) Increase in TOT 800,000 Restructure of Mutual Aid Revenue to separate fund (200,000) to separate fund (200,000) Charges for Services decrease (255,000) $ (158,000) $ (158,000)

13 February 3, 2009 City of Glendale - Finance Department 13 General Fund – Preview Changes in Expenditures Changes in Expenditures from ‘08-’09 adopted to ‘09-’10 Projected: Existing contracts and associated benefit costs $ 2,900,000 benefit costs $ 2,900,000 Other salary and benefit changes 415,000 Elimination of budgeted anticipated salary savings 2,000,000 salary savings 2,000,000 Increased funding for Police Staffing Augmentation Fund (total of $2.5 mil) 660,000 Augmentation Fund (total of $2.5 mil) 660,000 $ 5,975,000* $ 5,975,000* * = may increase due to PEG fee and INET Fiber Charges

14 February 3, 2009 City of Glendale - Finance Department 14 Estimated Estimated Estimated Estimated Estimated Estimated Resources Expenditures Surplus/ Resources Expenditures Surplus/ (Shortfall) (Shortfall) Projected $159,548,000 $174,088,000 $(14,540,000) Eliminate 24 vacancies (2,200,000) 2,200,000 Eliminate 24 vacancies (2,200,000) 2,200,000 Suspend GF Transfer to CIP (1,300,000) 1,300,000 Suspend GF Transfer to CIP (1,300,000) 1,300,000 Proj Mgmt staff in CIP ( 740,000) 740,000 Proj Mgmt staff in CIP ( 740,000) 740,000 Use of Gas Tax for streets 2,620,000 2,620,000 Use of Gas Tax for streets 2,620,000 2,620,000 Scholl Canyon waste shed 320, ,000 Scholl Canyon waste shed 320, , Revised Projected $162,488,000 $169,848,000 $( 7,360,000) General Fund - Overview Budget Preview

15 February 3, 2009 City of Glendale - Finance Department General Fund Budget Balancing Strategies for Discussion Employee Contractual Obligations – Re-Open Contracts; “Meet & Confer” Departmental Program Reductions –Elimination/Reduction in service levels –Elimination/Reduction in programs –5% reduction impacts approximately 60 filled full-time & hourly positions Change in Work schedules –Work Furloughs –Previous 9/80 Work schedule (same Friday off for most staff) –4/9’s Work schedule (36 hr workweek – 10% reduction) –4/10’s Work schedule (every Friday off ) Contracting/Privatizing of various functions Consolidation of services/Organizational Restructuring Continued reduction of costs in all areas Revenue Generating Programs

16 February 3, 2009 City of Glendale - Finance Department 16 Revenues Expenditures Surplus Revenues Expenditures Surplus Adopted Budget $ 27,425,000 $ 17,586,000$ 9,839,000 Revenue Revisions: Revenue Revisions: Sales Tax (778,000) (778,000) Sales Tax (778,000) (778,000) Scholl Canyon Assess. (350,000) (350,000) Scholl Canyon Assess. (350,000) (350,000) Rubbish Fees (968,000) (968,000) Rubbish Fees (968,000) (968,000) GRA Bond Proceeds (2,632,000) (2,632,000) GRA Bond Proceeds (2,632,000) (2,632,000) Subtotal $ 22,697,000 $ 17,586,000 $ 5,111,000 Recommended Actions: Recommended Actions: Transfer from GF (1,300,000) (1,300,000) Transfer from GF (1,300,000) (1,300,000) Use of accum. Gas tax (1,500,000) (1,500,000) - Use of accum. Gas tax (1,500,000) (1,500,000) - Project Management Staff 740,000 (740,000) Project Management Staff 740,000 (740,000) Projected ’08-’09 YE Budget $ 19,897,000 $ 16,826,000 $ 3,071,000 Capital Improvement Program (Fund 401) Impact of Recommended Actions

17 February 3, 2009 City of Glendale - Finance Department 17 Council Comments & Questions and Answers


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