A Practical Discussion on the Operation of City Government:

The Realities of a Partial Government Shutdown Based on Operation of LA R.S. 39:1312

Fund-specific analysis of the operational impacts of a 50% re-appropriation (partial government shutdown):

Elimination of all contract labor including contracted services which support daily operations.Elimination of all capital purchases.Reduction or elimination of discretionary operational services and expenses.Reduction in force (“layoffs”).

Phased, 6 week plan to reduce operations by 50%.Under State law the re-appropriations are the only available funds until adoption of a formal budget. The re-appropriations cannot be amended.The City must assume only 50% of funds will be available for all 12 months of operations.

Contract line crew and tree trimming crews in electric distribution eliminated.Contract labor in Code Enforcement, Sanitation, Municipal Transit, and Building Service Eliminated.Seasonal workers in Recreation Dept. released.Pending capital projects delayed or canceled, e.g. recognition of new funds cannot occur without an amendable budget instrument, rollover issues, staff to man projects.Cancel all contracts administered by Urban Forestry: Landscape, Grass Cutting, Tree Trimming and Tree Removal.Elimination of all Student Workers.Capital Purchases Curtailed City-wide

Electric distribution system maintenance curtailed; risk of increased service interruptions.All electric system and Urban Forestry tree trimming activities eliminated; risk of increased service interruptions due tree fall-ins.Longer enforcement times for littered lot (obnoxious weeds and grass) cutting.Increased cycle time for the pick up for green and bulk wastes; best current estimate is 40 days.

Elimination of two routes of night transit: Pineville and England Drive/AirparkElimination of one route of day transit: LSUA.Reduction in night services disqualifies the City from 50% of the federal subsidy for night routes.Closure of all Community Centers and Frank O. Hunter Gym except for previously booked events through July 5. Future bookings of these facilities are not being accepted at this time.

All recreational facilities except Johnny Downs, Cheatham, and City Park Complex will be closed; routine maintenance eliminated for all others. (Based on committed tournaments; revenue producing activities.)Pending Capital Projects delayed or canceled:

StreetsSugarhouse Road Reconstruction – delayedEnterprise Road Reconstruction (MPO) – delayedThird St. Enhancements - delayed North Mall Dr. Widening, Phase II – delayedLodi Road Drainage and Reconstruction – delayedHorseshoe @ Masonic Improvements – delayed

DrainageChatlin Lake Canal @ West Sandy Bayou – delayedEnterprise Road Subsurface Drainage – delayedMasonic/Prescott Box Culvert – delayedHynson Bayou @ Tangent Rail Box Culvert –delayed16 MPO Overlays and Reconstructions – delayedWooddale Drainage Phase II – delayedGreen Oak Avenue Drainage – delayedGreen Oak Ave. Drainage Phase II CDBG – canceled

Community DevelopmentFrank O. Hunter Park Improvements – delayedRuston Foundry Redevelopment – delayedFire Station #5 Relocation – delayedHodges Stockyard Commercial Phase – delayedCity-wide Directional Signage – delayedMasonic Drive Corridor Phase II – delayedAaron St./Monroe St. Sidewalks CDBG – canceled

UtilitiesPhase IV Water System Upgrade – bid award canceledMartin Park Water Main Replacement – delayedMartin Park Gas Main Replacement – delayedSewer Line Rehabilitation – delayed

Gas Transmission Additions - delayedDG Hunter Turbine Inspections – delayedDG Hunter Bearing Inspections – delayedDG Hunter Boiler Maintenance and Upgrade – delayedReconductor and Conversion of Prescott 2400V System –delayed138kV Transmission Maintenance – delayedTargeted Feeder Maintenance – eliminatedSubstation Maintenance – delayed138kV Pilot Wire Replacement – delayed Telephone Network Upgrade – delayedGIS Mapping – delayed

Grants and Bond Funds (Funding will be jeopardized.)GIS Drainage Mapping Project Resiliency Planning/UDC Development Project –delayed DEQ Revolving Loan Projects for Wastewater – delayed ATRANS Federal matching funds are jeopardized

Community Development grant funds are jeopardized:Code Enforcement Supplemental FundsDemolition/ClearanceWeatherization ProgramHOME Funds – Housing New ConstructionCommunity Housing Development Organizations

Residential median, right-of-way, and ditch maintenance severely reduced.Green Belt maintenance terminated.Urban tree trimming and removal terminated.All Student Workers terminated.

Beginning June 13, 2011Implementation of Employee Layoffs (average 25% - 30% workforce reduction in all divisions except for public safety and sanitation)Further reduction/elimination of ATRANS Operations by reducing/eliminating bus routes and times of operationFurther reduction of operations or closure considered:

Alexandria Zoological ParkLinks on the Bayou Golf CourseRiverfront Center and Convention HallAnimal ShelterAlexander Fulton Hotel: effective at lease end, July 30

The long-term effects of operating without a budget include jeopardizing required payments:

Debt Service Payments – negatively impacts City’s bond rating, making future borrowing more expensive or prohibitive. Inability to adequately fund health insurance and retirement pensions.Air Quality and Water Quality Permits – subjects City to severe penalties and reapplication under stricter requirements mandating capital upgrades and improvements to facilities.Stormwater Testing and MS4 Implementation and Management – subjects City to possible penalties.Risk Management Fund reduced by 50% resulting in inability to pay claims.

Inability to defend the City and City employees from lawsuits, resulting in immeasurable harm to City finances and individuals.Contract delays and lack of budgeted grant revenue place significant federal and state dollars in jeopardy of loss:

ATRANS fundingCommunity Development (HOME, CDBG, etc.)Planning and Capital ProjectsMPO funding

Elimination of Mardi Gras FestivitiesElimination of Que’in on the Red FestivalClosure of Coughlin-Saunders Performing Arts, in the absence of private contributions covering all City obligations.Closure of River Oaks Arts Center, in the absence of private contributions covering all City obligations.Closure of Fire Stations by impact analysis.Reassignment of APD Street TeamsReassignment of Community PolicingReduction of Policing ZonesReduction/Elimination of AFD EMS Services

Continued deferral of capital improvements and renewals further distresses our already aging infrastructure and rolling stock.Preventative maintenance delayed or forgone reducing the useful life of capital assets.Ability to delivery traditional governmental services is severely curtailed. Closure of entire departments to fund essential life, safety, and health service, subject to emergency authority granted the administration under Title 39.

Amendment to Original FY 2011-12 Proposal Revenue Impact

Sales tax revenue projection revised from -5.5% to -4.5% $270,000

Residential Sanitation service increases $1.00/month $186,238

Environmental Fee (Stormwater) increases$1.00/month

$287,647

Bus Fare increases from 50 cents to 75 cents $175,000

Admission to Alexandria Zoo increase $2.50 /person $175,000

Use of Prior Year’s Revenue $865,000

Total Amendments $1,958,885

Notes:Employee furloughs eliminated.Average fee increase - $2 per household per month. Commercial Sanitation service rates would still increase by amounts originally proposed.

New Priority Based Upon Revised Revenue Picture Resulting From Fund Addition to

Fund Balance at 10/12ths of FY 11

As of May 3, 2011 with 10/12ths of last fiscal year under analysis the City of Alexandria is estimated to be $1.1M in favorable budget variance.The administration recommends the entire FY 11 budget variance be allocated to reduce the employee’s portion of health insurance costs.

Note:The breakpoint under the Mayor’s original budget for avoiding changes to the Health Insurance Plan was $1.4M.