Loading...
2011-09-20 CC Agenda Packet - ITEM B1 - FY 2011-2012 Preliminary BudgetFY 2011-2012 Preliminary Budget FY 2011-2012 Preliminary Budget Preparation Strategic Planning Sessions — June 8t" & August 31St Staff presented strategies to address structural deficit -Staff reviewed the current Fund Balance Policy Revenue generators and expenditure reduction options were presented to Council to help resolve the structural deficit Staff identified approximately $2.8 million for the potential use of one-time projects 2 New Projects — Available Funds - Sources and Recommended Uses ONE-TIME FUNDS AVAILABLE FOR SPECIAL PROJECTS: $ 1,916,995 Available Fund Balance above 17% policy 900,000 Fleet Reduction $ 2,816,995 TOTAL RECOMMENDATIONS FOR USE: $ 400,000 One-time Retirement Incentives 2,4161995 Capital Infrastructure Projects 3 FY 2011-2012 Preliminary Budget Preparation Council approved the following items: Staff was directed to move forward with the infrastructure projects and related funding presented. Staff will return to Council before final approval on all projects. Reduction in salaries and benefits totaling $3.5 million Funding for one-time retirement incentives totaling $4007000 Economic Development Plan 51 Preliminary General Fund Revenue and Expenditures — FY 2011/2012 GENERAL FUND Preliminary Budget 11112 Revenues, net $ 49, 773, 900 Transfers in 700,000 Total Revenues $ 5034735900 Expenditures, net 551772,150 Transfers out 3017000 Total Expenditures $ 5670737150 Deficit $ (51599,250) Budget Deficit Solutions $ 575997250 FY 2011-2012 Preliminary Budget Deficit STRUCTURAL ADJUSTMENTS: $(110001000) OPEB Trust Withdrawal Fire Department Staffed at 16, $(11049,627) Run Down to 14 $ 3,549,623 REDUCTION OF SALARIES AND BENEFITS General Fund - Revenue & Expenditure Trends Thousands f Total Revenues, net of Transfers -4p--- Total Expenditures $80, 000 $75,000 - - - - - --- - - -- — - - -- - $7.75 million in transfers were authorized in the FY 09l10 Budget. An additional $3.2 million in budget balancingoptions were authorized at 3rd Quarter. $70, 000 1st OPEB payment made FY 07-08: $65,000 I $2.4 Million ' $59,119 $62, 639 $60,000--$5$,326 - 0 $55,000 $54' F" $54,42 11054,505 50,474 $48,927 $47,859 $52,321 $50, 000Z- - $50, $45,377 0,873 $ 7,146 50,474 $48, 48,838 $45,000 —$43, — -- - - ,725 $4 million loss o investment $40,000 _- — in September 2008. $35, 000 + — — - - --- - -- Decrease in the Price of Budget last balanced in FY 01-02 Natural Gas - FY 08109 $30, 000 1 ----r---- - - -T —, 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-2012 (Est.) (prelim.) Fiscal Year 7 General Fund Revenues — FY 10- 11 Year-end Estimates v. FY 11-12 Prelim. Budget Increase Projected (Decrease) to Year -End Preliminary FY Projected Year - GENERAL FUND 2010-2011 2011-2012 end Revenues, net $ 48,8389200 $ 49,7739900 $ 9359700 Transfers in 3,2861000 7002000 (2-258610001 Total Revenues $ 52,124,200 $ 50,473,900 $ (156509300) H Assumptions for 11/12 Preliminary Budget Revenues: Increase of $935,700 from: Sales Tax In Lieu Property Tax Business License Tax Transient Occupancy Tax (TOT) resulting from increase in occupancy Cogenerated Electric Tax Development Fee Assumptions for 11/12 Preliminary Budget Revenues (cont'd): No growth expected for the following revenue sources, which make up 23% of revenues: Interest on Investments Sales & Use Tax Franchise Tax 10 10 General Fund Expenditures — FY 10- 11 Year- end Estimates v. FY I I - 12 Prelim. Budget (Decrease) Projected Preliminary to Year -End FY 2011- Projected GENERAL FUND 2010-2011 2012 Year-end Expenditures, net of adjust. 52,647,900 50,172,900 (2,475,000) Transfers out 301,000 301,000 - Total Expenditures $ 52,948,900 $ 50,4735900 (254757000) 11 Decrease in Expenditures - FY 10-11 Year- end Estimates v. FY 11-12 Prelim. Budget Decrease to Projected Year - GENERAL FUND end FY 2010-2011 Yearend Estimate: 5219487900 Decrease due to: Concessions Expiring 9/30/11 $(37124,300) Salary & Benefit Reductions FY 2011-12 3,549,600 Additional Reduction of Salaries & Benefits 4251300 Further Reductions to Expenditures: OPEB Trust Drawdown 17000,000 Fire Dept Staffing Reduction 1,049,700 Total Decrease: $2,475.000 12 FY 2011-2012 Preliminary Budget: 50,473,900 Assumptions for 11/12 Preliminary T'udget Expenditures: � Vacant positions eliminated —total for 50 positions — approx. $5 million in total compensation . Personnel Costs: CalPERS Pension Rate Increases - $1.1 million $800,000 increase - Public Safety $300,000 increase - Miscellaneous Employees Health Benefit Costs — Average 7% increase - $400,000 Salary Increases — 2% for the Supervisory/Professional Group - $80,300 13 13 Employee Concessions Expiring at Year - End FY 2011: Concessions by Labor Groups: VALUE ($) City Employees Association $ 365,749 Firefighters Association 7477208 Police Management Association 1993949 Police Officers' Association 8431705 Police Support Services Employees Association 687117 Supervisory and Professional Association 219,016 Management/Confidential (unrepresented) 7087606 $ 31152,350 * Total Salary and Benefit Savings was $5.2 million for FY 2010-2011, which included $3.1 million in concessions identified above, $1.5 million from retirements and $600,000 in layoffs. 14 14 Salary and Benefit History [E] 2008-09 M 2009-10 ❑ 2010-11 (Est.) © 2011-2012 Prelim N 06 M ti N M r^ Re NLO Efl CO d' {f} N 00 1 j 06 M M M t0 RN M N 9 C V? in - Total Salaries Total Benefits cc � CO Cfl I- LO � LO O M 6c* cM N � � — Total Salaries and Benefits 15 15 Assumptions for 11/12 Preliminary Budget Expenditures (cont'd): Equipment Replacement Costs — Funding at 100%. Annual OPEB Payment — Funded at 100% ($2,0001000) ESUSD Funding - $250,000 cash payment & continue funding crossing guard contract ($80,000) and in -kind contributions ($1,051,700) estimated for FY 11 /12) No growth factored for nonpersonnel costs, except for prescheduled contractual increases 16 16 General Fund Nonpersonnel Expenditures Adopted FY 2010-2011 Projected Yearend FY 2010-2011 _Nonpersonnel Expendituri 14,017,600 13,341,305 Preliminary FY 2011-2012 13,051,150 Savings to Projected Yearend FY 2010-2011 290,150 Savings to Adopted FY 2010-2011 $ 9669450 17 Preliminary General Fund Revenue and Expenditures — FY 2011/2012 GENERAL FUND REVENUES: GENERAL FUND EXPENDITURES: ESTIMATED DEFICIT: LESS: SALARY CONCESSIONS: FIRE DEPARTMENT RUN DOWN: OPEB TRUST DRAWDOWN: PERMANENT EXPENDITURE REDUCTIONS: TOTAL GENERAL FUND EXPENDITURES $ 503473,900 56,073,100 595999200 (3,549,600) (11049,600) (1,000,000) (515997200) $ 50,473,900 18 18 QUESTIONS? 19