1. DRAFT FY 2014-2016 Resource Allocation Plan / Two Year Plan
City of Sausalito
DRAFT
FY Resource Allocation Plan / Two Year Plan
“Investing in the Quality of Sausalito’s Future”

2. Agenda FY 2013-14 Budget 1. Budget Highlights
2. New Budget Format
3. Department / CIP Discussions
4. Summary and Outlook
5. Council Direction to Staff & Next Steps

3. Budget Highlights Operating Budget: Capital Improvement Plan:
Rebounding economy generating increasing tax revenues – both elastic and inelastic
Labor cost reforms generating significant savings of annual pension and retiree health benefit costs
Maintaining city reserve funds
MLK capital purchase and capital improvements leases retired
Adjusts sewer utility rates to keep pace with environmental projects that protect Richardson Bay and citizens from health hazards
Continuation of excellent city services: public safety, library, recreation, beautification, maintenance services
Capital Improvement Plan:
Continuing street improvements including concrete streets reconstruction
Increased funding for small parks improvements
Projected ferry terminal shoreside improvements from grant resources
Employs strategic use of long-term financing to accelerate sewer infrastructure projects

4. Budget Highlights – Rebounding Economy
Generating increasing tax revenues – both elastic and inelastic

5. Budget Highlights – Labor Reform
Generating significant savings of annual pension and retiree health benefit costs

6. Budget Highlights – Maintaining Reserve Funds

7. Budget Highlights – MLK NOI

8. Budget Highlights – Sewer Fund

9. Budget Highlights – Capital Improvements
Continuing street improvements including concrete streets reconstruction
Increased funding for small parks improvements
Projected ferry terminal shoreside improvements from grant resources

10. Budget Highlights – Continuation of excellent city services: public safety, library, recreation, beautification, maintenance services

11. Traditional Line-Item Activity & Performance Budget
New Budget Format
Item
Detail
Description
Narrative description of purpose of department/division
Ongoing Tasks
Typical duties and responsibilities, by programmatic activity
Strategic Plan
How department/division participates in meeting the strategic plan goals and objectives
Priority Calendar
What are department/division Priority Calendar items
Staffing
Full-time equivalents (FTEs for full-time and part-time staff by position
Performance Indicators
Inputs, Outputs, Outcomes, Productivity, Efficiency & Effectiveness Indicators
Department Revenues
Revenues generated by / associated with departmental/divisional activities
Department Expenditures
Expenditures by major category
Traditional Line-Item
Activity & Performance Budget
Budget Orientation
Money Control
Service Delivery
Basic Budget Unit
Line-Item
Activity
Results Measurement
Budget Control
Budget Control & Performance Measurement
Budget Period
Two year
Multi-year

12. Why is the new format important?
Establishes an accountability mechanism
To the public for the city council’s decisions
To the policy makers for department manager performance
Makes spending priorities for the next year(s)
Determines actual service levels of programs
Allocates funds and establishes responsibility for outcomes to particular departments
Informs citizens of city policy and funding decisions and priorities
Provides information on the costs and activities of the city
Links long-term objectives with shorter term resource usage

13. Long Term Financial Planning
Assumptions
3% annual wage inflation
5% annual health care inflation
11% average annual pension cost increase (worst case scenarios)
Most expensive implementation of assumption changes
Investment 5th percentile)
2% general inflation
3.5% property tax inflation
4% elastic tax inflation

14. Current Budget Summary
Yes,
Current levels of service are adequately funded (stable)
The budget is structurally balanced and sound (sustainable)
Reserve balances sufficient funded based on a risk analysis and mitigation strategy (resilient);
but…
Significant additional infrastructure investment needed:
Maintain and repair 80-year-old storm drains to protect water quality of Richardson’s Bay
Maintain and repair neighborhood streets and fix broken and potentially unsafe sidewalks

15. Capital Infrastructure Needs
The City does not currently have the funds to adequately address critical infrastructure needs.
Maintaining and Repairing 85-year-old Storm Drains
Storm drains are completely deteriorated/rusted through
Upgrades are needed to prevent pollutants, garbage and sediment from entering Richardson’s Bay
Maintaining and Repairing Neighborhood Streets and Fixing Broken Sidewalks
Deteriorating streets on steep hillsides create hazardous conditions
Crowded sidewalks must be maintained for pedestrian safety and access for seniors and the disabled.

16. “Building on the Basics”
Now that makes good cents!

17. More Questions… “What if? Why not?”