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HomeMy WebLinkAboutItem 2a: Direction Regarding 2009-2010 Fiscal Year BudgetDATE: TO: FROM: SUBJECT: SUMMARY DISCUSSION November 3, 2009 Mayor and City Council Donald Penman, City Manager Hue C. Quach, Administrative Services Director Fiscal Year 2009 -10 Budget Review Recommendation: Provide direction STAFF REPORT Administrative Services Department Enclosed are most recent General Fund revenue budget projections and an estimated ending fund balance for the fiscal year 2009 -10. The projections are based on the results of the year end closing financial statements for the fiscal year ending June 30, 2009 and only a couple of months of revenues received in the current fiscal year. These projections assume a very conservative approach of fully expending budgeted amounts for the fiscal year, which historically has not been the case. Further recommendations for Fiscal Year 2009 -10 budget adjustments can be brought back before Council as additional directions may develop from tonight's meeting. Expenditures for Special Revenue and Enterprise Funds are offset by grant revenues or fees from that specific service and are self sustained. Expenditures from these funds do not affect or burden the City's General Fund. For that reason, this mid -year review will primarily focus on the General Fund. The City Council adopted a FY 2009 -10 General Fund budget projecting the need to use approximately $300,000 in reserves and a projected ending fund balance of $4,105,000. Subsequent to budget adoption, as we close the Fiscal Year 2008 -09 financials, the General Fund substantially improved its fund balance as the fiscal year ended with the use of $54,891 in Reserve Funds as opposed to the initial projected need of $500,000 which was previously authorized by Council. The healthier fund balance was primarily attributed to achieving the mid -year proposed expenditures cuts and better results in overall revenues in FY 2008 -09 including a one time "discount" /savings of $251,404 from prepayment of the City's annual CaIPERS retirement obligation early in the fiscal year. Based upon the recently completed year end closing of FY 2008 -09 and revenue data Mayor and City Council November 3, 2009 Page 2 received year to date, the estimate of the FY 2009 -10 year -end balance has been revised from $4,105,000 to $3,647,774. The change in fund balance is primarily attributed to the projected sales tax data staff has received from the State since the adoption of the budget. Details relating to sales tax reduction will be discussed under the "Sale Tax" section below. The table below shows the changes of the FY 2009 -10 Adopted Budget numbers and Staffs current revised projection. Changes are in the beginning Fund Balance and Revenue figures which affected the overall ending fund balance since budget adoption. Beginning Fund Balance Revenues: Revenues Transfers in from other funds Total revenues Expenditures: Expenditures Transfers out to other funds CITY OF ARCADIA GENERAL FUND FISCAL YEAR 2008 -09 YEAR END Actual Total expenditures 44,895,338 Revenues over (under) expenditures (54,891) Ending Fund Balance FY 2008 -09 FY 2009 -10 Adopted Budget $4,955,503 $4,391,900 40,673,595 40,725,840 4,166,852 4,380,610 44,840,447 45,106,450 44,373,530 521,808 44,736,680 655,770 45,392,450 FY 2009 -10 Current Review Projection $4,900,612 39,759,902 4,380,610 44,139,612 44,736,680 655,770 45,392,450 (286,000) (1,252,838) $4,900,012 $4,105.,000 $3,647,774 Fiscal Year 2009 -10 Revenue Projections: The preparation of the FY 2009 -10 Budget has been a challenge given the recession and overall poor economic conditions. This creates an even greater challenge to make estimates that are economy driven. Although the adopted budget was based on conservative revenue projections, the state of the economy, in particular California appears Mayor and City Council November 3, 2009 Page 3 to be lagging from the current recovery effort. Many experts have suggested that there are signs of a recovery taking place since March 2009; however, there are just as many experts who would disagree as they point to the continuing upward movement of the unemployment rate. Additionally, the State's ongoing budget deficit problem compounds the issue and further cause uncertainty of the state's recovering development. For Arcadia, these factors have affected our overall revenue base with the one most affected and sensitive to unemployment and consumer confidence being the sales tax. Staff has reviewed all of the major revenue categories and with exception to Sales Tax, has determined that they are within the projected forecast given at the beginning of the budget adoption period. The following table provides the result of staffs analysis: Revenues: Property tax Public Safety Augmentation Franchise fee Sales tax Transient occupancy tax Utility users tax Business license tax Building permits Plan check fee Motor vehicle license fee Ambulance charge All other FY 2009 -10 Adopted Budget 9,102,000 390,000 1,100,000 9,189,000 2,495,000 5,300,000 961,580 680,000 535,000 4,526,000 900,000 5,547,260 FY 2009 -10 Estimated Actual 9,218,268 342,903 1,100,000 8,122,350 2,495,000 5,300,000 961,580 680,000 535,000 4,556,641 900,000 5,547,260 Change Budget vs. Estimate 116,268 (47,097) (1,066,650) 30,641 Total Revenue: $40,725,840 $39,759,902 ($966,838) Change Budget vs. Estimate 1.3% 12.1% 0.0% 11.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 2.37% Sales Tax: As Council may recall, at the September 15 City Council meeting, staff presented information regarding the sales tax decline that was due to the State's overall projection in calculating Arcadia's share of the "in- lieu" sales tax payment as part of the "Triple Flip" arrangement that was agreed to when Proposition 1A was passed in 2004. In summary, the State used a reduction rate of 20% in their calculation (2008 vs 2009) where as the overall rate of decrease for Arcadia was less than 10% in our analysis. For example the generalized State calculation would not account for any increase from the recent mall Mayor and City Council November 3, 2009 Page 4 expansion. Additionally, there were "overpayments" to almost every city that occurred in fiscal year 2008 -09 that will adjust our 2009 -10 sales tax receipts downward. As a result, the "in -lieu" payment portion (25% of total sales tax) from the State will be reduced by $696,000. Additionally, due to further drop in sales tax receipt seen in the 1 and 2 quarter of calendar year 2009, staff has recalculated the sales tax estimate for the end of the FY 2009 -10 and determined that we could see total projected decrease of $1,066,650 from the budgeted Sales Tax figure. Please note however, that this projection is a very rough estimate as the projection was based on only a couple of months of sales tax received for the Fiscal Year 2009 -10. Although California's recovery will be slower than other states, there are signs of improvement and also the opinion that the economy has seen its worst period. Other Revenue Variance: Based on staffs analysis, other major revenue projections are within their adopted figure. Those with variances are: Property Tax, Public Safety Augmentation Fund, and Motor Vehicle License Fee. However, due to the immateriality of each number, staff does not propose a revision to their current budgeted amount. Budget Balancing Options During the current year's budget preparation process a significant amount of operational cuts were implemented without affecting critical services to the community. As Council may recall, the budget had an initial budget deficit of $2.6 million that was further reduced during the process to $300,000 and with Council's approval to use Reserve Funds, allowed for a balanced budget. Most of those cuts were from operational budgets without essential cuts to services though eight (8) Police Officer positions were frozen. Additionally, to their credit, all employee bargaining groups made concessions by postponement of salary and /or benefit increases that saved the General Fund $270,000. Due to the possible increase in use of reserve, each department was asked to analyze the expenditures incurred to date including any personnel savings as a result of vacancies. Additionally, each department was asked to review the remaining items from their 5% Reverse Priority List that was instituted during the budget preparation process. From the remaining list plus additional cuts to be offered, a total of $1,163,791 can be generated. However, these cuts would seriously affect services to the community. Mayor and City Council November 3, 2009 Page 5 Added with Council direction and for information purposes, staff looked into the cost savings of implementing a furlough. Based on current information from our payroll system, one day of furlough inclusive of Public Safety employees equates to $127,747; furloughing and excluding Public Safety employees net $44,177 of savings per day. There are several options the Council can consider to address the projected shortfall in the General Fund. Option 1 would have the least impact on services. It would involve: Use of remaining Reserve balance from the Fiscal Year 2008 -09, $450,000; Council approved FY 2009 -10 Reserve Fund of $300,000; projected new revenues from already approved User Fee increase in FY 2009 -10; savings from the General Plan Update; and savings generated as of to date from unfilled vacancies. This option is least likely to affect existing service level. Additionally, for budget purposes staff estimated that 100% of all General Fund appropriations would be expended. Historically, this has not been the case and further savings are projected which would further add to the fund balance at year end. This option provides an estimated surplus balance of $103,560 for the end for Fiscal Year 2009 -10. Option 1: FY 09 -10 Projected Deficit Balance: (1,252,838) Reserves /Revenue /Contract Savings: FY 08 -09 Remaining Reserve 450,000 FY 09 -10 Reserve (Council approved) 300,000 FY 09 -10 User Fee Increase (already approved) 270,000 General Plan Update Savings 86,529 Savings Janitorial Porter Contract 43,751 1,150,280 Unfilled Vacancies Savings: DSD Assistant Planner vacant 6 mths 37,325 Library Librarian II vacant 3 mths 19,606 PD Two (2) vacant for several mths 64,840 PW Maint Worker vacant 2 mths 9,374 PW Maint Worker (2) vacant 6 mths 56,244 PW Fleet Technician I vacant 2 mths 11,419 PW Storekeeper /Buyer vacant 5 mths 7,310 206,118 Net Surplus /(Deficit) Balance: 103,560 Mayor and City Council November 3, 2009 Page 6 Option 2: FY 09-10 Projected Deficit Balance: Reserves /Revenue /Contract Savings: Gas Tax Transfer to General Fund Deferral of Slurry Seal Street Project FY 09 -10 Reserve (Council approved) FY 09 -10 User Fee Increase (already approved) General Plan Update Savings Savings Janitorial Porter Contract Unfilled Vacancies Savings: DSD Assistant Planner vacant 6 mths Library Librarian II vacant 3 mths PD Two (2) unfilled positions /vacant for several mths PW Maint Worker vacant 2 mths PW Maint Worker (2) vacant 6 mths PW Fleet Technician I vacant 2 mths PW Storekeeper /Buyer vacant 5 mths Net Surplus /(Deficit) Balance: 500,000 300,000 270,000 86,529 43,751 37,325 19,606 64,840 9,374 56,244 11,419 7,310 (1,252,838) 1,200,280 206,118 153,560 Option 2: The differences of Option 2 vs Option 1 is to not use the carry over of the Fiscal Year 2008 -09 remaining Reserve Funds and propose the deferral of Street Rehabilitation project. Currently, the budget appropriates the transfer of $500,000 Gas Tax Fund to the Capital Improvement Fund for the slurry seal street project. An option for Council to consider is to transfer that amount to the General Fund for all operational and qualifying "Gas Tax" expenditures that have been budgeted in the General Fund. This option would provide an estimated surplus balance of $153,560 for the end for Fiscal Year 2009 -10. Mayor and City Council November 3, 2009 Page 7 Option 3: FY 09 -10 Projected Deficit Balance: (1,252,838) Reserves /Revenue /Contract Savings: Remaining 5% Priority List (Involves Critical Service 346,440 Cuts) FY 09 -10 Reserve (Council approved) 300,000 FY 09 -10 User Fee Increase (already approved) 270,000 General Plan Update Savings 86,529 Savings Janitorial Porter Contract 43,751 1,046,720 Unfilled Vacancies Savings: DSD Assistant Planner vacant 6 mths 37,325 Library Librarian II vacant 3 mths 19,606 PD Two (2) unfilled positions /vacant for several mths 64,840 PW Maint Worker vacant 2 mths 9,374 PW Maint Worker (2) vacant 6 mths 56,244 PW Fleet Technician I vacant 2 mths 11,419 PW Storekeeper /Buyer vacant 5 mths 7,310 206,118 Net Surplus /(Deficit) Balance 0 Option 3: Do not carry over the Fiscal Year 2008 -09 remaining Reserve and proposes the use of remaining 5% Priority List (Attachment B) which would involve cutting personnel and critical services to Development Services Department, Fire, Police, and Library Services. Other departments would also be negatively affected from further operational budget cuts that are above the reductions that were implemented at the budget adoption process. As a practical matter, the Council could selectively implement cuts of $346,440 from the remaining 5% Reverse Priority list so there would be no use of reserves but also no surplus in balancing the budget for the Fiscal Year 2009 -10. While there are a number of options the Council can consider in addressing this shortfall for FY2009 -10, staff believes the best approach is to implement Option 2 as this would least affect service level at this time other than cancellation of the slurry seal program. If the revenue picture improves as the fiscal year progresses, the Council could reinstate the project since it is done during the summer. Additionally, staff believes this measured approach taken through this economic predicament has worked well as it allows for sensible and planned cuts without causing unpredicted cost increases or impacting employee morale or making services cuts that ultimately might be unnecessary. Mayor and City Council November 3, 2009 Page 8 Outlined below are alternative options that can be presented to Council should deeper cuts become necessary but also can be implemented at a later time, therefore giving staff more time to determine its needs based on the pace in which the economy can recover. These alternatives assume Council approval of staffs recommendation of Option 2: Continuing to put a "freeze" on existing vacant positions for the rest of the fiscal year to achieve additional savings. Based on current vacancy list, additional 6 months of "freeze" would achieve approximately $141,000 (excluding Police vacancies). Develop a list of cuts from the Remaining 5% Priority List. As staff has noted, further cuts from this list would affect services deliver by each department. However, should the economy worsen there would be an underlying understanding that consideration for cutting service has to be reviewed. With a list already in place, staff can quickly develop a list of cuts and present it for Council's consideration with short notice. Implementation of a furlough to achieve necessary savings. One day of furlough inclusive of Public Safety employees equates to $127,747; furloughing and excluding Public Safety employees net $44,177 of savings per day. Use additional reserves, specifically those that were authorized last fiscal year but not needed. RECOMMENDATION It is recommended that the City Council provide direction on closing the General Fund budget shortfall for FY 2009 -10. Attachment A Vacancy List Attachment B Remaining 5% Priority List Approved By: Donald Penman City Manager Vacant Positions Dept Status Annual Cost (Salary Benefits) 74,650 Assistant Planner DSD Eligibility list currently exists. Position placed on hold. Librarian II (Children's) LIBRARY No current recruitment 78,424 Library Technician I (Tech Services) LIBRARY No current recruitment Already Frozen in Budget Dispatcher II POLICE Continuous recruitment however position has been frozen Already Frozen in Budget Police Officer POLICE Contingent job offer made, pending background investigation. 88,200 Police Officer POLICE Currently accepting applications and testing. Dept is also working off eligibility list. 88,200 Maintenance Worker PWS Eligibility list currently exists. Position placed on hold. 53,266 Maintenance Worker PWS Eligibility list currently exists. Position placed on hold. 53,266 Storekeeper /Buyer PWS First round of interview started on October 28th 21 ,928 (General Fund portion of savings) Annual Cost for All Vacancies: $457,934 Attachment A ATTACHMENT B REMAINING 5% LIST (POLICY ITEMS) ADDITIONAL CUTS Depts Remaining 5% Additional Possible Cuts Total ASD 5,200 5,800 11,000 CM 47,000 47,000 DSD 118,028 26,680 144,708 FD 469,103 469,103 LIB 29,310 114,342 143,652 PD 116,240 116,240 PW 130,529 101,559 232,088 TOTAL: 915,410 248,381 1,163,791 Savings from: 1) Extending tree trimming from 4yrs to 5yrs $28,456; 2) Decrease street sweeping from weekly to bi- weekly $73,103 ADMINISTRATIVE SERVICES DEPARTMENT REVERSE PRIORITY LIST 1 2 3 4 io /A e REMAINING REDUCTIONS (POLICY ITEMS) Temporary Part-time help Reduce temporary help for Cashier's office SUBTOTAL: 5,200 OTHER BUDGET CUTS FOR CONSIDERATION Training Budget Recruitment Advertising Total Additional Cuts (Policy Items): 9,000 7,000 2,000 10,000 6,000 4,800 1,200 5,000 SUBTOTAL: 3,000 2,200 800 5,000 5,800 11,000 Less temporary help will be used to fill in during employees' leave time. Various tasks will not be completed timely. Will not be able to hire temp help to fill in while another cashier is on leave. Current staffing level limits ability to provide coverage without affecting other work deadlines. Eliminate budget for Excel and Access Software Training Classes Reduce recruitment advertising budget. accoun number 001.1801.4032 001.1807.4032 001.1801.6970 $500; 001.1807.6970 $300 001.1810.6151 2 R everse Priority Description /Account Title Proposed Budget Revise Budget Savings Impact REMAINING REDUCTIONS (POLICY ITEMS) 1 City Council Office Supplies 1,000 Less money available to purchase supplies used by the City Council and staff in support of Council operations. 2 City Council Print Shop 2,000 Less money available to purchase printed materials including letterhead, envelopes, business cards and specialty items. Money for printed items may run out prior to the end of the fiscal year. 3 City Council Official Meetings 1,000 There will be $1,000 less for Council Members to be reimbursed for conferences, meetings and community events and for refreshments at City Council meetings that begin prior to 7:OOpm. 4 Commissioner's Dinner /Silver Circle Volunteer Recognition Dinner 28,000 Eliminate the 2010 Commissioner's /Silver Circle Volunteer Recognition Dinner. The decision to cancel, if desired, should be made now so that there is time to notify the volunteers. 5 Temporary possibly 7,000 Eliminate all in -house video production. 6 Special Events 3,000 Eliminate a potential environmental event/activity or an ACTION special event. 7 Special Events 5,000 Eliminate the 2010 Mayor's Community Breakfast Total Additional Cuts (Policy Items): 47,000 CITY MANAGER/CITY COUNCIL/GENERAL CITY REVERSE PRIORITY LIST 3 re E2 w o Ce 0 LU LU CD r t LIJ ra Ill 1— Ce uj m iv O a DEVELOPMENT SERVICES DEPARTMENT 001.4103.6160 001.4103.4010 OTHER BUDGET CUTS FOR CONSIDERATION 001.4103.6165 001.4103.6940 001.4107.6160 General Plan Update project was reduced in scope by Council request ($70,252) and by reapportionment of funds from Prop C for traffic work ($16,277). Position was vacated on August 1, 2009. Employee was paid for one month of work in FY 09-10. Has been frozen since. Estimate shown assumes new hire date of February 2010 (6 months savings) Savings to be incorporated into FY 09 -10 Budget Plan check services will be charged to applicants as appropriate. Staff will have less flexibility to obtain specific expertise on certain projects (e.g. landscaping, parking, etc.) Limits travel /training budget for Planning Department and Planning Commissioners. Budget for traffic and engineering consultation will be significantly reduced. Staff will have less flexibility to obtain specific expertise on traffic/transportation or engineering projects. 86,529 66t7' 1.£ 8Z0`8 6 6 009'L 081.17 000'91. 099'9Z 801'PbI Revised Budget 342,749 005`4£ SUBTOTAL: 000'17 35,000 SUBTOTAL: 429,278 666'Z9 009'L 081.'8 000'09 Reduction to General Fund portion of contract scope for the General Plan Update Project Frozen Assistant Planner position Plan Check Services Planning Division Planning Department/Planning Commissioner Official Meetings Engineering Contract Services Total Additional Cuts (Policy Items): a— N M Tr cD CD re E2 w o Ce 0 LU LU CD r t LIJ ra Ill 1— Ce uj m iv O a DEVELOPMENT SERVICES DEPARTMENT 001.2202.6160 001.2204.5280 001.2201.5280 001.2206.5280 c‘i cg CV I Fire Station 105 exterior will not be power washed this fiscal year. The replacement of station uniforms will be affected. The replacement of station uniforms will be affected. The replacement of station uniforms will be affected. There will be a delay in providing all members second set of turnouts If this budget is eliminated, the Fire Headquarters front office may be closed when the Fire Administrative Specialist is off on sick leave or vacation during FY 2009 -10. `UPDATE: $882.74 HAS BEEN SPENT AS OF THE LAST PAY PERIOD ENDING AUGUST 29. BY DECEMBER 1, AN ESTIMATED TOTAL OF $1,000 WOULD HAVE BEEN EXPENDED. Reduces the temporary personnel in the Fire Prevention Bureau from 14 hours per week to 4 hours per week. As a result, the Apartment Inspection Program and the Self Inspection Program will not be completed on an annual basis by the Fire Prevention Bureau. `UPDATE: $597.04 HAS BEEN SPENT AS OF THE LAST PAY PERIOD ENDING AUGUST 29. BY DECEMBER 1, AN ESTIMATED TOTAL OF $1,761 WOULD HAVE BEEN EXPENDED AND AN ADDITIONAL $1,800 WOULD BE NEEDED FOR THE REMAINING FISCAL YEAR. Instead of using professional landscaping services, fire suppression personnel will maintain fire station landscaping. As a result, other areas of station maintenance will be affected. The start-up cost to purchase lawn maintenance equipment is anticipated to be total of $2,500 for all 3 fire stations. *UPDATE: THE MONTHLY FEE IS $1,083. BY DECEMBER 1, $4,332 IN MONTHLY FEES WOULD HAVE BEEN EXPENDED FOR THE MONTHS OF JULY OCTOBER. The Reserve Firefighter Program is an essential part of the Department's recruitment process as it allows us to hire quality Firefighters with proven performance directly from the Reserve Firefighter Program. It is also an asset to the community by providing a platform for young adults to leam about the fire service. The elimination of the Reserve Firefighter Program will increase overtime cost for the Fire Department as off -duty Firefighters will have to be utilized to perform essential details normally carried out by Reserve Firefighters. *UPDATE: BY DECEMBER 1, AN ESTIMATED $5,300 WOULD HAVE BEEN EXPENDED ON RESERVE FIREFIGHTER PAYROLL. 00 Z' I. 0517 000'1. 000'01. S CV 0 O CO a0 o t� Og 000'Z OSZ'09 O ri CV M v M ui 00Z' 1. 000'1. 00 0'£ OSZ'OL Contract Services Eliminate power 'washing of Fire Headquarters building Uniform Delay uniform replacement for Fire Prevention Bureau staff Uniform Delay uniform replacement for administrative staff Uniform Delay uniform replacement for fire suppression personnel Temporary Eliminate temporary personnel budget for front office coverage when Fire Administrative Specialist is out of the office Temporary Minimize temporary personnel budget for Fire Prevention Bureau Contract Services Eliminate CLS landscaping service for Fire Department Temporary Eliminate Reserve Firefighter Program and related salary expenses N CO V N f0 t— CO o 6 01 REVERSE PRIORITY LIST FIRE DEPARTMENT iegwnu lino VJ 001.2206.7233 toedWt If the Reserve Firefighters Program is eliminated, there is no need to purchase Personal Protective Equipment for Reserve Firefighters. *UPDATE: $1,279.91 HAS BEEN SPENT AS OF OCTOBER 1. BY DECEMBER 1, AN ESTIMATED TOTAL OF $2,100 WOULD HAVE BEEN EXPENDED. If this proposal is implemented: I The current AFFA MOU must be opened. The MOU between the Arcadia Fire Department and the Monrovia Fire Department (will have to be opened because USAR 106 is cross staffed by both Fire 1 Departments. In the event of a natural disaster such as an earthquake, there is a high probability for trapped victims in collapsed buildings. The elimination of the Urban Search and Rescue (USAR) Program would mean that the Arcadia Fire Department will no longer have the capability to affect immediate rescue. We would have to rely on outside assistance, which realistically can mean 48 hours or longer of waiting for the arrival of USAR resources to Arcadia. `UPDATE: $5,250 HAS BEEN SPENT AS OF THE LAST PAY PERIOD ENDING AUGUST 29. BY DECEMBER 1, AN ESTIMATED TOTAL OF $11,550 WOULD HAVE BEEN EXPENDED. This proposal will have a severe impact on the Fire Prevention Bureau's operations: This proposal will reduce the hours of the only administrative staff member in the Fire Prevention Bureau to 20 hours per week. Administrative work in the Fire Prevention Bureau will not be completed in a timely manner. This proposal would mean the Fire Prevention Bureau front office will be closed for public walk -ups and technical phone inquiries for 20 hours a week. 'UPDATE: APPROXIMATELY $8,882 HAS BEEN SPENT AS OF THE LAST PAY PERIOD ENDING AUGUST 29. BY DECEMBER 1, AN ESTIMATED TOTAL OF $19,540 WOULD HAVE BEEN EXPENDED AND AN ADDITIONAL $17,964 WOULD BE NEEDED FOR THE REMAINING FISCAL YEAR. Prorated Savings 006'Z M DS in N— Revised Budget 00 t `Z S 8 N ti M Proposed Budget 000'5 O O a) O) N al szt- Description/Account Title Reserve Firefighter Program Eliminate Reserve Firefighter Program and related program expenses L al fp p C l0 T 2 a N y r CO a_ G W N E SE Cu" 5 ca a 7 o N N N 76 fr N .V fl f n f0 N Reduce Administrative Assistant's work schedule to 20 hours per week roN O O a. co LLI ILI FIRE DEPARTMENT iegwnu' yunobe 110 peduq This proposal will have a long -term and severe impact on the Fire Department's intemal operational and administrative capabilities: The elimination of the Deputy Fire Chief position will create increased overtime when off -duty Battalion Chiefs are required to attend mandatory task force and operational meetings. This proposal will not only reduce the current adminstrative staff from 4 to 3, it will also eliminate the only administrator who has fire and emergency operational knowledge and capacity other than the Fire Chief. The areas of responsibility under the Deputy Fire Chief include operations, staffing, personnel, backgrounds, budget, Verdugo Task Force, communications, and grants. If the Deputy Fire Chief position is eliminated, all of these job responsibilities will have be absorbed by the Fire Chief and the Battalion Chiefs, whom already are managing numerous areas of responsibilities within the Fire Department. This proposal will substantially impact the succession planning of the Fire Department. If this position is eliminated in December 2009, it will create a domino effect resulting in the demotion of the Deputy Fire Chief, 1 Battalion Chief, 1 Captain, and 1 Engineer. Additionally, 1 Firefighter will have to be laid off. Due to the domino effect on personnel, this proposal may require the opening of the AFFA MOU. `UPDATE: APPROXIMATELY $40,212 HAS BEEN SPENT AS OF THE LAST PAY PERIOD ENDING AUGUST 29. BY DECEMBER 1, AN ESTIMATED TOTAL OF $100,530 WOULD HAVE BEEN EXPENDED. The impact will be severe: This proposal will reduce shift staffing from 5 Fire Paramedics to 4 per shift. This proposal will eliminate the paramedic assessment engine at Station 107 located at 79 W. Orange Grove Avenue. Consequently, Advanced Life Support (ALS) capability stationed in that district will be eliminated. ALS response time will increase in the northem part of the city because ALS units will be responding out of of Stations 105 and 106. This proposal will negatively impact Fire Paramedic retention rate, and it will also affect the Fire Department's succession planning. If this proposal is implemented beginning December 2009, it will require the opening of the AFFA MOU as well as the demotion of 2 Fire Paramedics. Prorated Savings fV V) M Revised Budget O t 2 O O ao N C7 Ya6pn9 .pesodoid CO O C N Description/Account Title C 0 +a y a N 0. d -c U N LL Z 7 0. CD 0 0 CO c E w Reduce the number of Fire Paramedics from 15to12 oo�N N J 0 F2 w y w W a' FIRE DEPARTMENT .iegwnu wno3tie VJ S8 co cySu`FD p V Cc 8 c 8 1 �edw� E I- N 0 c CO 0 O V N d E c' EE as a) a) o o rn .20 a w d c a N a E p) w 3p c a) d L co c it 0 m� 7 0) co E m o E c ns d E c� E N a' c c Q v m E O y o °o co k z. 0) E y ai d a E o Q o c r er 8 L .N E U co .C C o d �j c o£ w m c co 0 N $-v o c c r C. a<0 V C C co c O m `oa 8 E 3 LL Q i N U .0 0 U O C/) A U a N n c OU O d 0)m E d a�i co N C mr a 0) a cv E c co NL`m r a te) 0 m 0 a9 0:1 F- m 3 d arco '5 u 3 T a c is a) C Q a E a) 0 N a O 0 vi m 2 V U m C C O O 0 o N y N s- C a) p d C 5 co U OED Y c d c f E ai 4= 0 0" s y c c w E ac a E d° d m o i .0 e cd o x 0> L d U m c co p 0- co U L 3 d Q C w E U �ca O 7E C 3 Ea t a) a) C r c`o a) co f0 8 70 c Q C 0 a) a) v c m a) C O �j r o o a a N 0 C =w' E m m E a) ._u. 'y a of c--) a m 0 o 0 E 3 N o 0) cL 5 1 o a co rn a a a) a) y a c c a 0 c O rnm u) c a c d m o0E c m E c c o c o 6 �yc °:c y3 Ec c .c c my 0 7 L II N N 3 C E .2 yoo 0 yLL N d p 6 N 9 L n o a) m o 0 0 GL a) .C Q 2 0 Sarn a; o t c L 0 oc Q a LL a) a E o Prorated Savings 8 co ao £Ol•`69t' Revised Budget r co Proposed Budget N M fV p M U c co c a a U E co a m ca c E it L)escnpton /Account Title Eliminate 1 Paramedic Ambulance Total Additional Cuts (Policy Items): d 'a z r r H N J 0 a w co re w w re FIRE DEPARTMENT 001-5620-4010 001 5605 -4010 Reduce number of class visits, scout merit badges and family programs. Eliminate one regular storytime series; reduce programming; reduce class visits; reduce number of Summer Reading programs volunteers; would need full substitute budget of $5,000 to help cover desks. £8'9 0gZ'S9 L££'££ 6£0'tZ L9l.'0t' 68Z'68 Museum close on Tuesdays beginning 12/1; reduce hours of Education Coordinator from 30 to 20 per week. Library Children's freeze vacant Librarian II as of 10/2/09 CV X82 c ma k 55\ f 07 0 m EE ce o 1) vr 0. E #a2 2 ui. a 3£ w 0 k 0 8 0 0 k c 8 co. 0 2 k 0 0 c‘i k 0 0 (0 o 0 7 0 g 0 7 0 0) :a Savings pro-rated from December 1, 1009 through June 30, 2010 LIBRARY AND MUSEUM SERVICES Library Children's Services Library Materials Library Technical Services Library Materials Library Adult Services Electronic resources Library Adult Services Library Materials REVERSE PRIORITY LIST Library Print Shop New Items E ea 2�� n K co q CO 7 k k q 2 k LO J k 2 k g d 0 0 a) E k k E 0 k EA 0 0 ƒ m 0 0 c .c E E c p0- E \)§z0 m oo= o§ 02 w `cc k 2 /5o j0ov 0 o E eg E a E §t Q 00_ 88 -0 CO C e c u r it 0 e Psi ct s i oe0) 0 4= e s c k Cuc_ d a 2000 k� c 0) N 7 ca CD 2oo u f 0 0 $h3 [L c 0 k 0 0 0) k m $E a) c E a) 0@2= 0 nm 2\ e@= 0. 0. M 0 C 0 POSITION FUND ANNUAL COST SAVINGS COMMENTS MAINTENANCE WORKER 520 -7204 56,245 9,374 Filled September 2009/2 months of savings includes overhead MAINTENANCE WORKER 001 -3304 56,245 9,374 Filled September 2009/2 months of savings includes overhead MAINTENANCE WORKER 001 -3304 56,245 28,122 6 months of savings includes overhead MAINTENANCE WORKER 001 -3302 56,245 28,122 6 months of savings includes overhead FLEET TECHNICIAN I 001 -3331 68,514 11,419 Filled September 2009/2 months of savings includes overhead 001- 5601 -6160 001 -3307 9,398 3,133 Museum 001- 5620 -6160 001 -3331 12,530 4,177 Police STOREKEEPER/BUYER 118 -1901 3,133 1,044 Will be filled November 2009 520 -7201 31,326 10,442 521 -3306 6,265 2,088 PART -TIME LABORER 001 -3305 3,600 3,600 Vacant Janitorial Contract 001 -3302 28,456 4 Year Grid 3,835 trees trimmed /year. 5 Year Grid 3,068 trees trimmed /year. Decrease of 767 trees trimmed /year 767 x $63.60 $48,781). Prorated 7 mos. $28,456. Recreation 001- 5502 -6160 53,810 6,333 New contract for janitorial and porter services was awarded Public Works 520 7201 -6160 13,122 1,169 7/21/09 in the amount of $229,173 Fire 5,460 Previous Year: $326,470 City Hall /Park Restrooms 001 3309 -6160 41,663 5,812 Library 001- 5601 -6160 53,724 12,480 Museum 001- 5620 -6160 2,734 1,259 Police 001 2102 -6160 58,660 16,698 Extend Tree Trimming from 4 years to 5 years 001 -3302 28,456 4 Year Grid 3,835 trees trimmed /year. 5 Year Grid 3,068 trees trimmed /year. Decrease of 767 trees trimmed /year 767 x $63.60 $48,781). Prorated 7 mos. $28,456. Increase Street Sweeping from weekly to bi- weekly 001 -3307 73,103 9 months of bi- weekly sweeping 3 months of weekly sweeping for heavy leaf fall $125,320 annually: prorated 7 mos. $73,103 All of the recommended cuts for PWSD's Reverse Priority list were included in FY 2009 -10 Operating Budget. Below are additional savings as a result of vacancies and a new contract. Additionally, the City Council may choose to approve the policy items below for additional savings. SALARIES AND WAGES CONTRACT SERVICES CONTRACT POLICY ITEMS PROGRAM SUBTOTAL: Total for Janitorial Contract: SUBTOTAL: FUND FUND PUBLIC WORKS SERVICES DEPARTMENT 359,746 ANNUAL COST 229,173 ANNUAL COST 110,895 SAVINGS 43,751 I 42,582 I SAVINGS 101,559 12 General Fund General Fund COMMENTS COMMENTS