2010-06-24 CC Agenda SPC - PRESENTATION - ITEM1 - FY 2010-2011 Strategic Planning Sessionic Planning Session
June 24,,.2010
1
E; For Planning Session
projections for revenues and
expenditures .
2. Review options for balancing the
FY 2009-2010 year-end deficit.
2
s For Planning Session
� snsuTptibns/forecast for
preliminary FY 2010-2011 General
Fund budget.
2. Review options for balancing FY
2010-2011 General Fund budget.
K
r
FY 2009=2010
Year-end Update
Y °�
49
S�GU�
0
i�r�al Fund Revenue and
�nditures — FY 2009-2010
FUND 09/10
t $ 54,598,750
7,729,650
venues $ 62,328,400
@I --- I�rr-enditures, net
Transfers out
Total Expenditures
Surplus/ (Deficit)
61,827,400
501,000
$ 62,328,400
Tamed
End 09/10
$ 48,843,455
7,701,650
$ 56,574,919
59,230,214
501.000
$ 59,731,214
$(3,186,109)
Shortfall
($ 5,755,295)
(28,000)
($ 5,783,295)
2,597,186
2,597,186
$(31186,109)
5
es in Year-end Expenditwoe
tes —Midyear
rease: $768,651
ued Salary savings
14-Vacancies Citywide
duction of overtime
-Fire - 62% reduction to SPLY
• Reduction of non -personnel
__1r_I
.
ed Options for
1 YE Deficit:
Year-end Deficit:
($3,186,109
stpone Capital Projects:
elease Designation in Econ. Uncert. Fund - FS #2:
Reverse Equipment Replacement Charges 09/ 10:
Postpone ETRC Projects:
_Comm Center Transition to RCC Effective 8/ 17:
Equip. Repl.-Retired Assets not being replaced
Surplus/Deficit:
320,000
748,809
1,471,000
87,000
258,300
301,000
N
A-L-
p67
i:;�- .0-P
--
-11
preliminary Budget
Preparation
i;ptions for 10/ 11 Prelimiry„,.
et Expendi��res:
crew es — 2% to-7%depending on
ing units for Police, Fire, Police
dement and Supervisory/Professional Groups
F
ices scheduled for the remaining employee
��roups
Communications Center funded for the amount of
the Contract with RCC
• Vacant positions not funded — total for all positions
— approx. $3.2M in total compensation
01
)ti'ons for 10/'11 Prelim,,ime.�.
,et ExpendRures.
ner-rt Replacement Costs — Funded at 90%
Of000)
al OPEB Payment — Funded at 100%
00,000)
USD Funding - $250,000 cash payment &
Y ontinue funding crossing guard contract
($80,0ated�for 10/11contributions
�) ($967,500
• Capital Funding - $350fOOO
• City-wide new technology projects — No funding
110
�111 Revenue Ass um-ptions "
rs of the $5.5 million in
e decreases from FY 09/10 Adopted Budget to FY
Preliminary Budget:
Tax &Sales Tax In Lieu —Decrease of $2.2 million
r 09/10 Budget
anchise Tax —Decrease of $1,000,000
Business License Tax - $600,000 increase resulting from
-indexing
transient Occupancy Tax (TOT)—$600,000 decrease
• Cogenerated Electric Tax - $550,000 decrease — total
$1.4 million decrease in last two years
a Interest on Investments — $300,000 decrease
Charges for Services - $300,000 decrease
11
ues — Last 5 years — A,,v.Mre-ge,,-
5e—4%
HISTORICAL REVENUES, NET OF TRANSFERS
2004-05
2005-06
2006-07
2007-08
44,661,204 $
50,872,502 $
54,421,261 $
52,320,508 $
1,592,368 $
6,211,298 $
3,548,759 $
(2,100,753) $
3.70%
13.91 %
6.98%
-3.86%
2008-09
54,504,867
2,184,359
4.17%
2009-10 (est.)
$ 48,843,455
$ (5,661,412)
-10.39%
12
nary General Fund Reva-*ue
expenditures — FY 2010/2011
EI�E, RAL FUND
net
in
evenues
-Expenditures, net
Transfers out
Total Expenditures
Surplus/ (Deficit)
P�inary .,.■��
Budget 10/11
$ 49,086,200
i.000,000
$ 50,086,200
58,315,900
501,000
$ 58,816,900
$ (81730f 700)
13
> to Address Current &
W:
ral Deficit
e;*
workforce
ly Retirements — Fire Personnel and non -safety groups
offs
Concessions
i- Furloughs
— Pay reductions
— Benefit reductions —Employees pay their share of PERS
— Two -tiered benefits —Future Employee's benefit package
reduced
14
�s to Address Current &
ral Deficit
nc'bafance in Internal Service Fund
r f
is Compensation Fund
-�I Liability Fund
Went Replacement Fund
It-hdraw from OPEB Trust or do not fund Annual
'Required Contribution
� Reduce
balance
u ndesignated/un reserved General Fund
15
jnty+- ire
tar 2010 — Council authorized staff to
west a survey from L.A. County Fire to
iide fire services to the City
e 2010 — Staff received preliminary
- -findings from L.A. County Fire
� Staff will present an analysis of that
survey to our actual and future costs.
16
r
p Costs — In-house (st
y — 4-year Savings $�2
laries & Benefits
ersonnel
FY 10/11 FY 11/12 FY 12/13
aff at 19),.
7 million
FY 13/14 FY 14/15
$ 15,099,206
15,7501013
16,622,866
17,532,564
17,958,119
927,100
954,913
983,560
1,013,067
1,043,459
$ 16,026,306
16,704,926
17,606,426
18,545,631
19,001,578
CountyContract -
Total Savings - Staff at 19 $ -
10,400,000 10,92%000 11,466,000 12,039,300
6,304,926 6,686,426 7,079,631 6,962,278
17
o�t Costs — In-house (staff at 14) v.
`— 4-year Savings $16.4 million
daries & Benefits
rsonnel
FY 10/11
$ 15,099,206
927,100
$ 16,026,306
Workforce reduction - Staff
at 1(2,444,216)
$ 16,026,306 14,260,709
FY 11/12
15,750,013
954,913
16,704,926
Total Cost - Staff at 14:
County Contract
Total Savings - Staff at 14 v.
County
10,400,000
3,860,709
FY 12/13
16,622,866
983,560
17,606,426
(2,598,438)
15,007,987
10,920,000
FY 13/14
17,532,564
1,013,067
18,545,631
(2,762,989)
15,782,642
11,466,000
4,087,987 4,3161642
FY 14/15
17,958,119
1,043,459
19,001,578
(2,839,673)
16,161,905
12,039,300
4,122,605
Comparison to CouDtty Fire
currently budgeted at 19 per shift - 3
es, 1 Truck, 2 Paramedic Ambulances, and
:align Chief.
SFD proposed at 14 per shift — 2 Engines, 1
Truck, 2 Paramedic Ambulances, and a Battalion
-Chief.
• LACOFD proposed at
Assessment Engines,
Squad.
12 per shift - 2 Paramedic
1 Truck, and a Paramedic
19
y Fire —Options to Bridge, the
eficit in the Transition Year
If Withdrawal If We Do Not
12-8 hour days)
Ming
,idraw from Trust
f
OR
ual Required Contribution
*Borrow from Aquatics Fund
Equipment Replacement Fund
—Corn-m. Center balance
—Fire Dept. balance
TOTAL AVAILABLE FOR TRANSITION:
R.
from Trust
1,500,000
1,500,000
11500,000
1,400,000
3,000,000
81900,000
Fund ARC
$ 11500,000
$ 2,200,000
$ 1,500,000
$ 11400, 000
$ 31000, 000
$ 9,600,000
*Workers Compensation and General Liability Funds — Excess Fund Balance
20
ti avings if the City
ions t0p.Co (j n m yNartr-e
N-P.M.0-Sick Le.,awe
pack averages $500k
6 Re tuction Reduces our long-term liability
1 .3 million (5% of total liability)
Workers Compensation (cost of disability
retirements) 55%
- -General Liability and Workers Comp. savings on
premium calculated on City salaries
21
Fire Additional Costs
itions Costs
�uipment/etc costs estimated from
OOK to $1.2M
E-�- - - - -
9 Vacation/Sick Leave
22
immepartment Revenues
lance Revenues June 2009-May
et Revenues $485,700
UPA —Net Costs
• Fire Prevention Revenues - Net Costs
23
jT OPTIONS IF EL SEGU(WN DO
DEPARTMENT IS RETAINED
Fe
as identified possible options,
drug reductions to salaries and
fits, non -personnel costs, and one
ae funding sources.
Staff has also summarized the impacts of
the possible options on the community.
24
DUGET OPTIONS TO RETAIN
BUDGET
_REDUCTIONS
94 positions (70 PT & 24 FT) $ 31700,000
nal Non -Personnel savings
Fund OPEB Annual Required Contrib.
in vacancies (31)*
Requires City to Meet and Confer with Unions
*Salary Reductions - 50/o
OR
•Employee -share of EPMC - 5%
$
1,300,000
$
21200,000
$
71200,000
$
3,200,000
$ 3,000,000
$ 21400,000
* The cost of these vacancies has been excluded from the 10/11 preliminary budget
25
T OPTIONS TO
SIN ESFD (cont I do)
i%w OPEB Trust $
ghs 12 8-hour days per employee $
ONE-TIME
FUNDS
11500,000
1,500,000
t fund annual ERF $ 11500,000
.1
balance Comm. Center $ 11,400,000
.izefo Out transfers $ 426,000
*Workers Comp Transfer $ 250,000
TOTAL $ 6,5761000
26
T ISSUES TO RETAIN ESFD
Ong Impacts:
Sincreases
1_�__W,11/12 3,7% $259,000 increase
l� 12/13 6,1% $427,000 increase
Increase in Education Incentive and
Longevity premiums
—Workers Compensation Increases —
pending cases valued over $1,OM
27
ral Fund Impacts -
force R1eeduction
Total Full-
-Time/ Part -
Time
Positions
40
6
FI.NAMCE 1.17
PLANNING/BUILDING SAFETY 18
POLICE DEPARTMENT 98
FIRE DEPARTMENT 69
PUBLIC WORKS 37
RECREATION AND PARKS 140
LIBRARY SERVICES 35
470
Current
Vacancies Additional Reduction in Workforce
Civilian
1
1
2
3
2
1
6
3
3
22
Sworn Civilian Sworn
12
2
1
6 7 4
3 3 13
2
50
9 77 17
Number of
Positions
13
3
3
3
19
20
8
53
3
125
% of Total
Positions
33%
54%
18%
17%
19%
29%
22%
38%
9%
27%
al Fund Workforce Red otion
et Savings
THE GENERAL
RTMENT
ER
OURCES
FINANCE
.- "PLANNING/BUILDING SAFETY
POLICE- DEPARTMENT
FIRE DEPARTMENT
PUBLIC WORKS
RECREATION AND PARKS
LIBRARY SERVICES
NON
CURRENT
PERSONNEL
TOTAL
PERSONNEL
LAYOFFS
VACANCIES
CUTS
$ 324,650
1507000
807000
947650
1747650
1221450
36,450
867000
-
86,000
2907850
4,000
-
286,850
286,850
5267700
2527000
-
2741700
2747700
2,483,800
95,000
17219,800
1,1693000
2,3887800
27395,000
27,900
1,7547703
640,397
2,3677100
904,200
3147000
997870
490,330
590,200
683,000
322,000
3617000
-
361,000
3467000
95,400
-
250,600
2501600
$ 8,173,850
17365,950
3,601,373
37206,527
678077900
29
ice Impacts to Community
tepartment —
bv/reducing avai�rlable
owe r.
in direct expertise in evidence collection, specifically
Ilecting and preserving latent fingerprints and DNA
- ders our response time to in -progress crimes.
-The Department will no longer provide neighborhood
watch, security plan reviews, crime and community
bulletins
— Loss of Victim Assistance Programs
— Reduce Lobby and counter service hours. This impacts
jail matron coverage.
— Reduce Records Operation hours.
3.0
j� Impacts to Community
nt
iced capability to respond to emergency
bents potentially impacting effectiveness and
iency in mitigating hazards.
ncreased dependence on mutual aid.
�-`Reduced ability to handle simultaneous
emergency incidents.
— Potential delays in emergency response.
— Potential delays in responding to public inquiries
and requests for information.
31
Impacts to Community
�p ent
ice plan deck capabilities resulting in
ased turnaround time for plan review
Iduced inspection capabilities resulting in
creased life safety hazards
EI�1.
mination of annual Super -CPR Saturday Event.
= Reductions or elimination of CERT classes.
—Eliminate training provided to local businesses
for disaster planning & preparation
— Eliminate ability to oversee evacuation drills for
local businesses
W
Impacts to Community
ion & Parks
Minate the Master Swim Programs
se Acacia Pool
1e The Plunge on Saturdays
ra I Arts
� Reduce operating hours at the Clubhouse
�== *-Cut contract classes
• Eliminate one Senior Drama Production annually
— Teen Center
Close on Sundays
• Reduce Staffing
—Joslyn Center
• Close on Sundays and reduce operating hours 33
,ow
,, rImpacts to Commmnit-ymaww,
tion & Parks
t
:educe staffing and coordination with vendors
to Events
;ancel Hometown Fair Event
eliminate the use of professional sound
Cancel Halloween Frolic
t;l�.;- • -Cancel 'Concerts in the Park" Series
— Recreation Operations
Quarterly brochure of available services printed by city
staff and available online only
n Reduced Checkout Building hours (limits availability of
staff to public)
@ Reduction of service hours at Campus El Segundo
�V
�e Impacts to Community
q,tion and Parks
terioration of City Landscape
crease in trimming and replacement of City trees
CL.
Impacts to Community
ecreased service hours — 10-14 hours/week
currently closed on Sundays)
ESUSD Libraries
• 3 Libraries closed on Mondays
• Reduce all School Library hours 2-3 hours/day
— Delay of Technology Upgrades
36
Impacts to Community
fictions and/or elimination of residential
ces (e.g., graffiti removal, community event
Sport, sewer back-ups);
WFF,educed response time internally and externally;
Reduced infrastructure maintenance;
— Reduced street sweeping;
— No job certifications and training.
37
impacts to Community
istrative Services to Community
ceptionist function transferred to
tomated telephone system.
�ervice impacts to billing, cashiering, fee
--_ payments due to reduced staffing
Planning & Building Safety
— If level of construction increases, likely cause a
increased time for reviewing plans, inspection and
issuing permits
03
j al Options for Balancing,,-
ue, Generators
Ffeof Fire Station #2
`Trash Collection Fees - $600,000
PLF Developer Fee & Park Fee Study
TOT Rate Increase — 1%AND 2% FY 12/13
An increase to 9% could result in an additional
$482.,000 in revenues annually.
An increase to 10% could result in an additional
$964,000 in revenues annually.
— Increase in Utility Users' Tax Fy12/13
39
I� ITEM -Council Benefits
ANNUAL EST.
refit costs:
Salaries
$ 54,000
Total Total Salary
Benefits & Benefits
$531174 $ 1071174
L[f]
Retirement
Pk
e. -rocess of amending our contract
aIPERS to offer an early retirement
age to our Fire Safety group
2-year service credit
Estimated increase in safety rate of .31% or
$52,000/year amortized over 20 years
(assuming 5 employees accept)
41