1 31 09 city budget report

8/14/2019 1 31 09 City Budget Report

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ClaremontCityCouncilAgenda Report

TO CITYCOUNCL

FROM JEFFREYC PARKER

DATE JANUARY 31 2009

SUBJECT FISCALYEAR2008 2010 BUDGETREPORT

SUMMARY

Due to the current national economc situation the City of Caremont is experiencing areduction in revenuesbelow projections made during the budget process in the spring of2008 At this point staff is estimating the City will have a 1 5 mllion dollar shortfall at theendof fiscal year2008 09 and a 2 mlliondollar shortfall at theend ofFY 2009 10 unlessthe City acts nowto reduce expenditures accordingly This report details the proposedoperational changes to correct the FY 200809 budget shortfall and outlines the currentstatus and remaining gap forFY 2009 10StaffRecommendationStaff recommends that theCityCouncil

1 Approve the presented plan to balance the 2008 09 budget and appropriate the1 011 000 in onetime unanticipated revenueAttachment A

2 Receive and file the City Manager s draft 2009 10 budget plan which includesoperational reductions benefit reductions and organizational changesAttachment B


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CityCouncilJanuary 31 2009Page 2of4

Staff anticipates these revenueswill remain down in simlar amounts next fiscal year 0910 with the addition of a 2 5 increase in operating costs due to normal escalations incontracts and employee benefits

09 10Shortfall

1 220000800001000002000080000

RevenueTVDeSales TaxTransientOccupancy TaxHotel TaxBuildinq Permt FeesDevelopment FeesPlan Check Fees

The combination of these reductions in revenueand anestimated 500 000 increase inoperational costscometogether to produceCaremonts current 1 5M budget shortfallin FY2008 09and a 2M shortfall forFY2009 102008 09At this time staff anticipates a revenueshortfall of 1 5 million for FY 2008 09 In order tomaintain a balanced budget forFY 2008 09 AttachmentA presents the staff recommendedsolution for theshortfall

The first section of the tableoutlines onetime unanticipated revenuetheCity receivedfromgrants the state and operational changes that have occurred since thecompletionof thebudget


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CityCouncilJanuary 31 2009Page 3 of4

The first threesections ofAttachment B aresimlar toAttachment A with someadditionalreductions achieved by having a full yearof costs to reduce Additionally there is 118 000from theGeneral Fund Reserves to fully resolve theshortfallOver the last three weeks theAssistant City Manager and negotiating team have beenmeeting with the six employee associations to brief them onthe budget situation andprovide themwith options onhow to help reduce the budget beyond the operational cutsalready madeby theCity Manager

The fourth section shows the benefit reduction recommendations for each of theemployee groups basedontheir responses to theCity Manager s request to reducebenefit costs These reductions have not yet been agreed to by the employeeassociations The negotiating teamwill bemeeting with the various groups overthecomingweeks toget finalconcurrenceontheproposed reductionsThe fifth section shows the groups whose percentage of the cut will need to beachieved through organizational changes The City Manager will be meeting withDepartment Heads todecidewhat organizational changes will benecessary to reachthe required dollaramount from each group

Once the negotiating teamand theassociations havecometo tentative agreements onthebenefit reductions thesebenefit reductionswill cometo theCity Council forapproval Afterthe benefit reductions arefinalized by council theCity Manager will inform the council ofthe organizational changes thatwill be needed to resolve theshortfallPUBLIC


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City CouncilJanuary 31 2009Page 4of4

Submtted by Prepared by

ffiP

Jeffrey C ParkerCity Manager TonyRamosAssistant City Manager

Prepared by Prepared by

fMAdamPirrieFinance Manager

ColinTudorAssistant totheCity Manager

V CTudor COUNCL AGENDASTAFF REPORTS Budget Report 1 31 09doc

Attachments AttachmentAFY2008 09Budget PlanAttachment B FY2009 10 Draft Budget Plan


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AttachmentA CityoCaremontBudget Plan

FY 2008 09

200809Shortfal1 500000

Contributionfrom theGeneral FundReserveContributionof funds resulting from thereceipt of unanticipated onetimeGeneral FundrevenuesProp 172 Fundswerenot included inthe budget as itwas

anticipated thestatewoudtakethese fundswhich they did notRevenues have exceeded budgeted amounts bythis amount YTDTheleaseagreement withTriCitywasnotincluded in the budget due totheagreementbeing reached after theconclusionof the budgetNotbudgeted offsetgeneral fundcost for parkrangerprogramRevenueswll exceed budgeted amounts by thisamount YTDRevenueswll exceed budgeted amounts by thisamount YTDNotbudgeted thesearecurrentpayments fromthestate Fingerprintingand domesticviolenceAnticipated fundbalanceinPHTFundafterPergola project and transferof Theatretodeveloper

300000PublicWorks Permts

27000Y FSC Lease

53000Park Ranger Grant

46000 1 011 000Grading PlanCheck

10000Street RehabFees

317 000S890 StatemandatedCaims

8000PaduaHills TheatreFund

250 000

Remaining Shortfall 489 000Vacancies SavingsReceptionist H SMaintenanceCraftsperson II C SSeniorMaintenanceAssistant PT C SMaintenanceAssistant PT C SPark Ranger PT C SPark Ranger PT C SPlanning InternCD

38000None1700014000140001400012000

Vacancies Subtotal 109 000

Remaining Shortfall 380 000Page 1 of3


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AttachmentA CityoCaremont FY 2008 09Budget Plan

Operational Reductions SavingsAdmnistrativeServices Operating Budget Savings canbe identified inthefollowingaccounts BudQet SavinQs RemaininQProgramSupplies Reduction in Community Information budget 10400 6 500 2 013

elimnates budgeted onetimeCitywidemailingLegislative Activity Reduction infunding for Council legislative trips 6 500 3 500 3000

andconferencesContingency TheCityManagermaintainsacontingency fund 200000 42000 158000

inorder tobeprepared for unanticipated coststhroughout theyear Reduction of this fundmay 75000require staff to request funding from theCouncilfor unanticipated costs

Advertising Duetothe hiring freeze nonessentialpositions 23 500 12000 3 985thereis areducedneed for advertising jobs

Personne Exams Due tothehiring freeze nonessentialpositions 232 5 11 000 5 544thereis areducedneed for newhireexams

Community Development Operating Budget Savings canbe identified inhefollowingaccounts BudQet SavinQs RemaininQNusanceAbatement Basedonyear todateactuals it is anticipated 43900 22000 17 614

sufficient funds remaintomeet theneedContractServices Delays thetransferof plans toelectronicformat 362045 58000 70054 80 000project planning has beenworking onAny large

unanticipated projects will needto befundedbyCouncil appropriationCommunity Services Operating Budget Savings canbe identified inhe following accounts

BudQet SavinQs RemaininQProgramSupplies Reduction in CaremontHills Wlderness Park 33550 4 000 6 713

tours and reduces ability to replace signageContract Services Reduces several contractmaintenanceservices 885 951 34000 54710

including painting pressurewashing parkrepairs Thompson Creek trail plantservicelrental and reduction insport field 51 000maintenance Individua accounts being reducedretan sufficientfunding foressential service

Water Reduces thefrequency of parkwatering from3 198 112 13 000 104231times totwiceaweek

Page2f3


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AttachmentA City ofCaremontBudgetPlan

Operational ReductionsHumanServices Operating Budget Savings canbe identified inhe following accountsProgram SuppliesContract Services

Reduction inYACandTAC programsuppliesEliminates theUniversity of LaVernePsychological services counseling programJanitorial cost for Y FSC which is nowheresponsibility of TriCityTheproposed savings is theamount historicallyremaining in budget at theend of theFY

Meetings Travel This expenditure category is budgeted tocoverthecost of travel toand fromevents andconferences relevant to City operations All funds have beenconsolidated andanytraveland training requires theapproval of theCityManagers OfficeTraining TheCity budgets funds forthe developmentof employees through their participation intraining opportunities specific to their jobclassifications aswel as togeneral training to improvetheir knowledge and efficiency in delivering service toresidents All funds have beenconsolidatedand anytraveland training requires theapprovalof theCityManager s OfficeEquipment TheCitybudgets for thepurchase of equipment to replace pieces that areobsoleteorbroken increases the replacement timelinefor various pieces of equipment Nofunds remainMiscellaneous Reduces theabilityof thedepartments toabsorbunanticipated necessaryexpenditures Nofunds remainEDAC EDAC provides funding for employeedevelopmentand training Budgets for both generalEDACand EDACtraining programs totas 56000 24 000 EDAC 32000EDACTrainingEDACwll continuetocoordinateevents for staff al costs wll becoverby participant feesEmployee recognition events wll bescaledback Trainingwll continuewithsmallerworkshopsLeadershipAcademy wll not beheld

EquipmentMaintenance

YouthScholarshipsGrants

Operational Reductions Subtotal

FY 2008 09

Savings

BudQet Savinas RemaininQ40 285 8000 1473516500 16 500 0

18200 7500 6 906 43 000

36000 11 000 22073

137 526 40000 3343040000

68720 27000 21 295

27000

25 950 24 164 021 000

13 000 13000 013 000

56000 30000 15576

30000

380 000

Remaining Shortfall o

Page 3 of3


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Attachment B City ofCaremontDraftBudget Plan

FY2009 10

2009 10Shortfal2000000

Contribution fromthe General FundReserveContribution of funds resulting fromthe receipt ofunanticipated onetimeGeneral FundrevenuesY FSCLease The leaseagreementwithTriCitywasnot

incuded in the budget duetothe agreementbeing reached after theconcusionof the budgetprocess

79000

197 000

Contribution from theGenera FundReserve 118000

Remaining Shortfall 1 803 000Vacancies SavingsReceptionist H SMaintenanceCraftsperson II C SSeniorMaintenanceAssistant PT C SMaintenanceAssistant PT C SPark Ranger PT C SPark Ranger PT C SPlanning Intern C D

51 000None

21 00015 00015 00015 00012000

Vacancies Subtotal 129000

Remaining Shortfall 1 674000

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Attachment 8 CityofCaremontDraftBudget Plan

Operational ReductionsAdmnistrativeServicesOperating Budget Savingscanbe identified inthefollowing accounsProgramSupplies Reduction in Community Information budget

eimnates budgeted one timeCitywidemailingLegislative Activity Reduction in funding for Council legislative trips

and conferencesContingency TheCityManagermaintainsacontingencyfund

in order to beprepared for unanticipated costthroughout theyear Reductionof thisfundmayrequire staff to request funding from theCouncilforunanticipated costsDuetothehiring freeze nonessentialpositionsthere is aeduced need for advertising jobs

Advertising

Personne Exams Duetothehiring freeze nonessentialpositionsthere is areducedneedfor newhireexams

Community SurveyCouncil Commissioner Dinner

ElimnatedEvent wll bereduced to arecognition reception

City Letter CityLetterwll only bemailed2 timesayear Theother4 issueswll beproducedand copies left atCity facilities forpick upand theCitywebsitefordownload

CommunityOutreach NoCouncil handouts such as the sustainabilitybags fans at the4thof July andVillageVenturebooths

Community Development Operating Budget Savings canbeidentified inthe following accountsNusanceAbatement Basedonyear to dateactuas itis anticipated

sufficientfunds reman to meet theneed

ContractServices Delays thetransferof plans to electronicformatproject planning has beenworking onItasoreduces engineering s ability to respond to non

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FY 2009 10

Savings

Budaet Savinas Remanna100 0 6500 3900

6500 3500 3000

160000 70300 89700

23500 12000 11 500

154300232 5 11 000 122 5

20000 20000 07000 6 000 1 000

42 000 20000 22000

9000 5000 4 000

Budaet40000

SavinQs20 000

Remanna20000

298 100 7000050000 248100


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Attachment B City ofCaremontDraft Budget Plan

Operational ReductionsCommunity Services Operating Budget Savings canbeidentified inthe following accountsProgram Supplies Reduction in CaremontHillsWldernessPark

tours and reduces ability to replace signageReduces severa contractmaintenanceservicesincluding painting pressurewashing parkrepairs ThompsonCreek trail plantservicerenta and reductionin sport fiedmaintenance Individua accounts being reducedretan sufficientfunding for essential serviceReduces the frequency of parkwatering from3times to twiceaweek

HumanServicesOperating Budget Savingscanbeidentified inthefollowing accountsProgram Supplies Reduction in YACand TACprogramsuppliesContractServices Elimnates theUniversity of LaVerne

Psychological services counseling programEquipment Maintenance Janitoria cost for Y FSC which is now the

responsibility of TriCityYouthScholarships Grants Theproposed savings is the amount historically

remaining in budget at theendof theFYMeetings Travel This expenditurecategory is budgeted to coverthecost of travel to and fromeventsand conferences reevant to Cityoperations All fundshavebeenconsolidatedandanytrave and trainingrequires theapproval of theCity Managers OfficeTraining TheCitybudgets funds for the developmentof employees through theirparticipation in trainingopportunities specific to their jobclassifications as wel as to general training to improve theirknowledgeand efficiency in delivering service to residents Allfundshavebeenconsolidatedand any trave andtraining requires the approvalof theCityManager s OfficeEquipment TheCitybudgets forthe purchase ofequipment to replace pieces that areobsoleteorbrokenincreases the replacement timelinefor variouspieces of equipment Nofunds remanMiscellaneous TheCitybudgets for expected unanticipatedexpenditures that may ariseduring thecourse of theyear Reduces theability of the departments to absorbunanticipated necessaryexpenditures Nofunds remanEDAC EDACprovides funding foremployee development and training Budgets forbothgeneral EDACand EDACtraining programs totas 56000 24000EDAC 32000EDACTraining EDACwll continuetocoordinateevents for staff all costs wll becoverby participant fees Employee recognition eventswll bescaed back Training wll continuewithsmalerworkshops LeadershipAcademywll notbehed

ContractServices

Water

Operational Reductions Subtotal

Budaet37050

889839

Savinas2000

37 000

Remanna35050

852839

FY2009 10

Savings

50000

2 3 15 4 11 000 2 2 05 4

Budaet Savinas Remanna40285 8 000 3228516 500 16 500 0

18200 18200 0 53700

36000 11 000 25 000

136 584 72000 64 58472000

69555 35000 3455535000

27 310 27000 310 27 000

1000010000 10000 0

44 00056000 44000 12000

516 000

1 158000emaining Shortfall

Page 3 of4


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Attachment B

BenefitReductionsCaremontManagementAssociation CMACaremontProfessiona Association CPEASanBernardino PublicEmployeesAssociation SBPEABenefitReduction Subtotal

CityofCaremontDraftBudget Plan

Division and DepartmentHeadsPlanners and EngineersAdmnistrativeand TechnicalEmployees

Remaining Shortfall

Organizational ChangesCaremontEmployee Association CEACaremontPoiceManagementAssociation CPMACaremont PoiceOfficersAssociation CPOA

OrganizationalChanges Subtotal

Maintenance Sanitation MotorFleet and Sewer EmployeesSergeants Lieutenants Captains Org Changes Recommended byCPMAOfficers and Corporals

Remaining Shortfall

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FY2009 10

23500070000253 000

558 000

600 000

100 000200000300000

600000

o

1 31 09 city budget report

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