april 28, 2009 city of glendale - finance department 1 budget study session 1 fiscal year 2009-10...
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April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 11
Budget Study Session 1Fiscal Year 2009-10
April 28, 2009April 28, 2009
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 22
2009-10 Budget Study Session 1 Agenda
Overview of 2008-09 Adoption Update of 2008-09 Budget Status 2009-10 Budget Estimates Strategies to Balance Study Session Schedule Feedback/Questions/Comments
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 33
Surplus/
Resources Expenditures (Shortfall)
Initial Budget $164,569,000 $174,537,000 ($9,968,000)
Revised Revenues 2,074,000 2,074,000 Department Reductions (5,905,000) 5,905,000 Other Vacancy Reductions (754,000) 754,000 Changes in Transfers 1,517,000 (650,000) 2,167,000 Citywide Reductions (432,000) 432,000 Unavoidable Expenses 1,316,000 (1,316,000)
Adopted Budget $168,160,000 $168,112,000 $ 48,000
General Fund - Overview 2008-09 Budget Adoption Recap
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 44
General Fund – Overview
2008-09 Actions to Adopt Budget Elimination of 43 vacant & 2 filled positions Elimination of various programs/services
SRO Middle Schools {3 sworn positions} Portion of COPPS {4 sworn positions} Downsized to One 3-person Engine in Fire {3 sworn
positions} Reduction in Recreation Program hours Reduction in Library services
Various Maintenance and Operations reduced or eliminated
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General Fund - Update 2008-09 Budget Status
After 2008-09 Budget adoption, the economy begins to shift drastically… Credit/Banking crisis hits Auto sales drop up to 50% Construction related spending slows down Retail outlets close Unemployment rises General consumer spending slumps
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General Fund - Update 2008-09 Budget Status
Sales Tax – How did Glendale compare? Glendale’s October thru December 2008 sales was
11.7% lower than the same quarter one year ago. Compared to…
Burbank – 11.2% Cerritos – 16.8%
Pasadena – 13.6% El Monte – 32.1%
Los Angeles – 12.1% Long Beach – 9.6%
Adjusted for aberrations, sales tax revenues was down… 13.4% for all of LA County 16.0% for all of San Bernardino County 22.3% for all of Ventura County 14.2% for all of Southern California
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 77
General Fund – Update of 2008-09 Revised Resource Projections
Sales Tax $(3,032,000) Occupancy Tax (100,000) Other Taxes (300,000) Licenses & Permits (1,613,000) 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)
Reduction of Estimated Resources $(8,129,000))
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 88
Surplus/
Resources Expenditures (Shortfall)Adopted Budget $168,160,000 $168,112,000 $ 48,000 Adjustments since Adoption 28,000 376,000 (348,000) Revised Resources (8,129,000) (8,129,000)
Projected YE Shortfall Before Adjustments $160,059,000 $168,488,000 $(8,429,000)
General Fund - Update 2008-09 Budget Status
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General Fund – Update of 2008-09 Mid-Year Adjustments
Resource Adjustments: Use of accumulated Gas Tax to relieve
GF contribution for street projects $ 1,500,000
Expenditure Adjustments: “Hard” hiring freeze – net savings 2,425,000 Elimination of 23 vacant positions 1,814,000 Suspend Transfer to CIP 1,300,000 Transfer Project Mgmt costs to CIP 819,000 M&O Reduction Efforts – estimate 655,000
Total Recommended Adjustments $8,513,000
$ 7,013,000
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 1010
General Fund – Update of 2008-09 M&O Expenditure Reduction Efforts Various energy savings measures implemented
Comprehensive energy audits of all facilities All personal appliances eliminated Office lights turned off at facilities Building Maintenance shifted to day schedules
Fleet Management consolidation Centralized fleet management Reduction in fleet size/Take-home vehicles
Reduction in fuel consumption Restricted Travel & Training
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Surplus / Resources Expenditures (Shortfall)
Adopted Budget $168,160,000 $168,112,000 $ 48,000
Adjustments since Adoption 28,000 376,000 (348,000)
Resource Reduction (8,129,000) (8,129,000)
Projected YE Shortfall Before Adjustments $160,059,000 $168,488,000 $(8,429,000)
Mid-Year Recorded Adj. 1,500,000 (3,933,000) 5,433,000
Projected YE Subtotals $161,559,000 $164,555,000 $(2,996,000)
Administrative Actions (3,080,000) 3,080,000
Projected YE Budget $161,559,000 $161,475,000 $ 84,000
General Fund – Update 2008-09 Budget Status
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Surplus / Resources Expenditures (Shortfall)
Projected YE Subtotals $161,559,000 $164,555,000 $(2,996,000)
Changes to Arrive AtChanges to Arrive At 2009-10 Initial Budget:2009-10 Initial Budget:
Reduction in Resources (1,570,000) (1,570,000)
Increase Transfer – CIP 1,120,000 1,120,000
Increase in Expenditures 4,155,000 (4,155,000)
2009-10 Initial Budget Est. $161,109,000 $168,710,000 $(7,601,000)
General Fund – 2009-10 Budget Estimates
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 1313
General Fund – 2009-10 Budget Estimates
Changes in Resources: Decrease – Sales Tax Revenues $ (733,000) Decrease – Building & Planning Fees (198,000) Closure of Passport Services (140,000) Move Mutual Aid to Special Rev. Fund (200,000) Other Miscellaneous Revenues (299,000)
Reduction in Revenues $(1,570,000) Increase in transfer from CIP 1,120,000
Net Reduction of Resources from 2008-09 $ (450,000))
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 1414
General Fund – 2009-10 Budget Estimates
Changes in Expenditures: COLA - Glendale Police Officers Association $2,000,000 COLA - Glendale Firefighters Association 1,200,000 COLA – Glendale Police Managers 162,000 Net Increase in Transfers 663,000 Net Increase in Other Expenditures 130,000
Increase in Expenditures from 2008-09 $4,155,000
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 1515
Surplus / Resources Expenditures (Shortfall)
2009-10 Initial Budget $161,109,000 $168,710,000 $(7,601,000)Known Changes: GFFA COLA elimination (1,200,000) 1,200,000 Benefit/Insurance Increase (est.) 500,000 (500,000) Increase Paramedic Trans. 1,300,000 (1,300,000) Cost Allocation 1,300,000 1,300,000
Revised Initial Budget $162,409,000 $169,310,000 $(6,901,000)
General Fund – 2009-10 Strategies to Balance
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General Fund – 2009-10 Other Strategies to Balance
Estimated Savings: Eliminate/Reduce contracted COLAs up to $2.0M Specific Program Reductions up to $3.6M Continue Hard Hiring Freeze up to $4.5M Change Service Models
e.g. New EMS Model up to $700K Privatization up to $500K
Graphics Employee Health Services
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General Fund – 2009-10 Other Strategies to Balance
Estimated Savings: Organizational Changes / Consolidations TBD
Fleet Consolidation Graphics / Mail Services Filming Coordination & Consolidation Other
Estimated Impacts: One-time Capital Outlay Requests $160K Unfunded Recurring Expenditure Requests $620K
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 1818
General Fund – 2009-10 Budget Study Session Schedule
Structure – Department Discussions Timing
2 hours Tuesday am beginning May 12th
4 hours Thursday am or pm beginning May 7th
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 1919
General Fund – 2009-10 Budget Study Session Schedule
Tuesday mornings – 2 hours May 12th – Finance, Human Resources, Mgmt
Services, City Clerk, City Treasurer May 19th – City Attorney, IS, Planning May 26th – GWP & CD&H
Thursday mornings – 4 hours May 7th - Police, Fire, & Development Services May 14th – Library, Parks, Public Works May 21st – CIP May 28th - Recap
April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 2020
Feedback
Questions
Comments