2011-03-29 2-a power point

8/6/2019 2011-03-29 2-A Power Point

http://slidepdf.com/reader/full/2011-03-29-2-a-power-point 1/24

1

City of AlamedaGeneral Fund Budget Study Session

March 29, 2011

8/6/2019 2011-03-29 2-A Power Point


Budget Study Session March 29, 20112

Budget Presentation Outline

General Fund Budget Overview

General Fund Budget: Revenue and ExpenditureTrends

Options for Addressing Projected Budget Deficits

Discussion of Council Priorities for Closing the Gap

8/6/2019 2011-03-29 2-A Power Point


8/6/2019 2011-03-29 2-A Power Point



General Fund Budget –

Major Expenditure Categories

31%

38%

9%

9%

13%

Public Safety - Fire(31%)

Public Safety - Police(38%)

General Gov't & AdmSvcs (9%)

Comm Svcs & PublicSvcs (9%)

Other Exp andTransfers (13%)

8/6/2019 2011-03-29 2-A Power Point



General Fund Budget –

Major Revenue Sources

32%

36%

13%

11%

8%

Property Taxes (32%)

Other Local Taxes(36%)

Revenue from OtherAgencies (13%)

Fees for Services(11%)

Other Revenues andTransfers (8%)

8/6/2019 2011-03-29 2-A Power Point



General Fund Budget Overview(continued)

• February 2011 – Audit / Mid-Year Reports Issued:

• Mid-year report projects revised balanced budgetof $73 million for FY10-11 attributed toAlameda Towne Centre property transfer tax

• Audit reports ending unrestricted fund balance of

$15 million (22% of annual expenditures) forFY10-11

8/6/2019 2011-03-29 2-A Power Point




• March 2011 – Staff Prepared Initial Budget Estimatesfor FY11-12 through FY15-16

• Projects $6 to $8 million deficits each year thru FY15-16

• Assumes revenue growth of 2-3% annually

• Incorporates new Miscellaneous / Safety PERS rates

• Assumes health and OPEB increases of 14% per year

•

Assumes no salary increases through FY15-16• Assumes 2-3% increases for all non-personnel expenses

resulting from inflation

8/6/2019 2011-03-29 2-A Power Point




11-12 12-13 13-14 14-15 15-16

Revenues 67.3$ 68.6$ 70.7$ 72.8$ 75.0$

Expenses 73.5 74.9 78.6 80.9 83.4 Deficit For Year (6.2)$ (6.3)$ (7.9)$ (8.1)$ (8.4)$

Ending AvailableFund Balance 8.9$ 2.6$ (5.3)$ (13.4)$ (21.8)$

5 Year Projections for FY11-12 through 15-16(In Millions)

Ending Available Fund Balance assumes no cost-saving

measures are taken.

8/6/2019 2011-03-29 2-A Power Point



Changes for FY11-12

Revenues

• Projected loss of cost allocation reimbursements:

• CIC ($581,000)

• Golf ($277,000)

• Ferry ($45,000)

• Decreased sales tax revenues - ($710K)

• Decreased other revenues ($150K)

Revised revenue estimate of $67.3 million (down2%)

G l F d B d t

8/6/2019 2011-03-29 2-A Power Point



General Fund BudgetTotal Revenue Trend

($ in millions)

$55 $55 $58 $59

$63$69 $69

$73 $74$69

$0

$10

$20

$30

$40

$50

$60

$70

$80

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

General Fund Budget

8/6/2019 2011-03-29 2-A Power Point



General Fund BudgetProperty Tax Revenue Trend

($ in millions)

$13$15 $15 $15

$17 $19

$21$22 $23 $22

$0

$5

$10

$15

$20

$25

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

8/6/2019 2011-03-29 2-A Power Point



Changes for FY11-12(continued)

Expenditures

• Increased costs for employee benefits

• PERS for Miscellaneous employees $ 413,000

•

PERS for Safety employees $1,335,000

• Health and dental premiums $ 737,000

•Increased OPEB contributions $ 298,000

8/6/2019 2011-03-29 2-A Power Point



PERS Rates Trend

13%

13%

13%

15%

16%

19%

19%

19%

30%

31%

31%

37%

39%

44%

44%

45%

0% 10% 20% 30% 40% 50%

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

Safety

Misc

8/6/2019 2011-03-29 2-A Power Point



Changes for FY11-12(continued)

Expenditures

• Increased costs for non-personnel items

• Supplies and services (including fuel) $622,000

• EMS payment to County $860,000

• Radio system $ 75,000

• Fee and Cost Allocation Study $ 50,000

Revised expense estimate of $73.5 million (up 6%)

General Fund Budget

8/6/2019 2011-03-29 2-A Power Point



General Fund Budget–

Revenue and Expense Trends($ in millions)

$65

$70

$75

$80

$85

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

Revenues Expenses

8/6/2019 2011-03-29 2-A Power Point



Addressing Projected Budget Deficits:

Expenditure Reductions

5% 10%

Non Departmental 35,000 70,000 General Government 164,000 328,000

Administrative Services 177,000 354,000

Police 1,353,000 2,706,000 Fire 1,243,000 2,486,000

Public Works 118,000 236,000

Library 85,000 170,000 Recreation/Parks 233,000 466,000

Total 3,408,000 6,816,000

Add i P j t d B d t D fi it

8/6/2019 2011-03-29 2-A Power Point



Addressing Projected Budget DeficitsExpenditure Reductions

(continued)

A. Structural Changes

Focus on provision of core services

Evaluate shared-service models with other

jurisdictions and/or contracting out for services

Consider reductions in workforce

Reduce funding for non-core levels of service

Eliminate programs


8/6/2019 2011-03-29 2-A Power Point




(continued)

B. Negotiations with employee unions

Furloughs Employee cost-sharing for PERS retirement

Employee cost-sharing for health premiums

Two-tier system for future employees for PERSand health

Reductions in pay

Add i g P j t d B dg t D fi it

8/6/2019 2011-03-29 2-A Power Point




(continued)

C. Other One-Time Items

Receive early repayment from loans made byGeneral Fund to Other Funds

Consider making one-time transfer of otherunrestricted funds to General Fund (ex. CapitalDiscretionary)

Reduce contributions from General Fund toInternal Service Funds

Addressing Projected Budget Deficits

8/6/2019 2011-03-29 2-A Power Point



Addressing Projected Budget DeficitsRevenue Increases

A. Increase Existing Taxes

1. Sales Tax – 9.75%

Increase .25%-.5% - $1.5 to $3 million2. Utility User Tax – 7.5%

Increase of 1% - $1.2 million

3. Transient Occupancy Tax – 10%Increase of 1% - $100,000

4. Property Transfer Tax – $12 per $1,000 of valuation

Increase by $2 per $1,000 - $500,000 to $700,000

5. Business Licenses – Rentals $20/Unit, Other $79-$155Increase by $20 - $340,000


8/6/2019 2011-03-29 2-A Power Point



Addressing Projected Budget DeficitsRevenue Increases

(continued)

B. Other Revenue Generation Options:

Consider new taxes:

1. Parcel tax for public safety services

2. Admission tax on theater tickets

Implement fee study proposed for FY11-12

Review options for increasing franchise taxes

8/6/2019 2011-03-29 2-A Power Point



Closing the Gap

Do we address the deficit through structuralchanges to our budget or through a combinationof structural and one-time fixes?

Can we solve our problems now and in thefuture by looking only at the cost side?

Do we focus on program elimination/workforcereductions and/or items requiring employeecontract negotiations?

Do we employ across the board cuts, or shouldwe be more surgical?

8/6/2019 2011-03-29 2-A Power Point



Next Steps

Acting City Manager and Finance staff review

of department budget proposals–

April

Council workshop on budget – May

Budget adoption – June

Cit f Al d

8/6/2019 2011-03-29 2-A Power Point


24

City of AlamedaGeneral Fund Budget Study Session

March 29, 2011

2011-03-29 2-a power point

Documents