city of cottonwood budgetary workshop i may 29, 2008 6:00 p.m. city council chambers
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City’s Budget Shortfall
This is what department headsstarted with—
($2,297,465)(including $100K in Undesignated Reserves)
No additional staffing No reclassifications No new programs or contracts This is a barebones base budget number
Reality Check On Our Main Revenue Sources
Sales tax down 10.4% in FY 2008
Sales tax expected down by 3.0% in FY 2009
State Shared Revenue is down Urban Revenue -5.7% State sales tax -4.5%
Local car dealership moved out of town
Dealing with the Reality Check
Eliminated Cost Of Living Adjustment – COLA
Eliminated Compensation Study
Elimination of positions
Reduction in overtime
Dealing with the Reality Check
Reduction in temporary staffing services
Hiring freeze
Reduction in maintenance Building maintenance Vehicle maintenance Grounds maintenance
Dealing with the Reality Check
Reduction in fuel
Reduction in contractual services (legal, ground maintenance)
Reduction in services (community policing, swimming pool hours, Emergency Medical Services, public safety inspections)
Reduction in recreational programs (Rhythm & Ribs, summer youth programming)
Dealing with the Reality Check
Reduction in training and continuing education
Reduction in travel/change in travel policy
Reduction in book purchases
Reduction in networking services
Dealing with the Reality Check
Reduction in support to outside agencies Old Town Association - OTA Senior Center Youth Commission
Additional reductions Supplies Subscriptions Postage & freight Small tools and operating supplies
City’s Budget New Shortfall
After all these budget cutsthe new balance is –
($602,710)(including $50K in Undesignated Reserves)
Projected 2.2% Sales Tax(Pre – Recreation Center – Summer 2006)
Capital Project Costs
Available Resources - E xpenditures
0
2
4
6
8
10
12
14
16
18
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Millio
ns
DeficitsOther Funding Sources2.2% Sales TaxPlanned Expenditures
Police Department
Loss of 3 Patrol positions Increased response time Reduced visibility Increased safety risk to on duty officers
Overtime reduction Reduced public relations (block watches, school
talks, multi-housing inspections) Reduced patrol time on streets Reduced presence at public events (Verde
Valley Fair, Smoke Out west, Christmas Parade)
Police Department
Reduced vehicle maintenance Tire replacement will be delayed Reduced car washes will lower public image Small repairs will be delayed, possibly
causing larger repairs costs in the future
Reduced Training limits growth of staff knowledge, skills and abilities that could increase safety and save lives
In general As the economy gets worse, crime rises Inability to perform services at prior
professional level
Animal Control/Communication
Animal Control Increase in dog at large issues No work at the dog park
Communications Increasing stress on staff due to reduced staff Reduced supervision, since supervisor will
need to cover a shift Increased time to rebuild with staffing changes Increased risk to officers on duty due to
working with obsolete, broken or faulty equipment due to budget cutbacks
Fire Department
Loss of one existing Firefighter/MedicNon-compliance with Occupational Safety
& Health Administration (OSHA) – 2 in/2 out
Increased public and firefighter risk due to longer response times
The inability to respond to multiple events or requests for service is significantly increased
Already need an additional staffed 4 person engine company
Fire Department
Absences will need to be covered by volunteer staff at a time we are cutting volunteer funding
Non– compliance with Federal, and State regulations and standards related to staffing, response times, and public & firefighter safety
Loss of ½ time fire prevention support positionReduced public fire and life safety educationReduced building fire safety inspectionReduced participation in community events
Fire Department
Reduced travel, training & continued education Limits growth of staff knowledge, skills and abilities Increase in liability by failure to meet;
OSHA Insurance Services Office (ISO), and National Fire Protection Association (NFPA)
Standards Reduces eligibility for grant, federal, and disaster aid
(grants can’t supplant)
Reduced operation supplies Increased health risks – Blood Borne Pathogens/
Communicable diseases/hearing damage Loss of technical advantage/service quality Reduced standard of care in emergency medicine
Fire Department
Deferred maintenance of vehicles, equipment, and radios Increases long-term costs Efficiency, and reliability is compromised Deterioration of standard of excellence Decreases safety and public image
Parks & Recreation
Elimination of Recreational Programs & Events Rhythm & Ribs Event Summer programming
Youth Basketball Summer internships Camping Series
Overtime budget cuts Cannot support after hours programming Remaining programming will suffer
Parks & Recreation
Early pool closure around September 1st Reduced services to public Affects Mingus High School most of all
If they need it they will have to provide full funding Affects a group of lap swimmers and evening
swim programs
Weight-room – reduced hours of operation Will affect weight-room patrons
Facilities Maintenance
Reduced cost of facilities maintenance Field over-seeding program is impacted Annual tree pruning, and weed-herbicide will
be reduced Bldg maintenance schedules will be extended Repairs on exteriors and interiors will be
postponed Custodial cleaning services eliminated on
Fridays except PD and FD
Other Impacts to Parks and Recreation
Current impacts Children will not have much to do during the
summer City will not have a signature event Pool early closure will probably not go unchallenged Parks will look ill maintained Lengthened maintenance schedules could cause
early failure of equipment. Buildings will fall in ill repair Old Town building will cost more later to repair
Other Impacts to Parks and Recreation
Upcoming impact – Recreation Center City may not have the ability to cover the
O&M on the Recreation Center
Library
Reduction in book purchases will age our collection
Traffic continues to increase and resources are not available
Concerns over being able to fund the O&M for the new addition to the Library
Utility Department
Eliminated sales tax contribution to Sewer Fund Capital fund will grow only by interest Capital program will be modified to fit within
the new model City is looking at smaller package plant vs.
regional plant
Department has reduced its budget to comply with overall City directive
Utility Department
Both Water & Sewer contribute to the GF Contribution to Natural Resources position
(50%) Will contribute to 25% of PW for engineer’s
services
Utilities contribute $266,000 to GF in indirect costs
Despite staffing constraints this department continues to maintain the Clarkdale water system and brings in additional revenues to our Utility Co.
Impacts on All Departments
Reduction in staff, compensation, COLA Stress will affect all personnel in general
Stress due to uncertainty of their jobs Stress over maintaining our high level of services The general feeling of “who” or “what’s” next Employees can’t keep up with rising costs Stress will drive up our health insurance Stress will increase our absenteeism
Reduction in training & travel Forego ability to acquire and implement
knowledge and skills Lower employee morale
Impacts on All Departments
Reduction in supplies, materials, & tools Reduction in quality of supplies and materials
used Inability to do the job properly Increased health & safety risks Increased liability to the City due to cuts
Grounds/Building Maintenance Parks will look bad and will increase our
liability due to lack of maintenance Increased costs for building maintenance in
the future
Impacts on All Departments
Sacrificing services and programming
Reducing support for outside agencies
Other Potential Cost Savings
10/40 schedule for employees Open 4 days a week 7:30 a.m. to 5:30 p.m. Savings on utility costs
Travel Policy Changes Reduce daily per-diem for meals Review mileage reimbursement
Cellular Phone Policy Changes Shift service responsibility to employee Will lower costs to the City
Revenue Options
Adopt the new building fees Current downturn in the housing market will
not make much revenue for the City Increase in fees concentrated on commercial
property Increases the cost of building projects Positions the City for future growth
Revenue Options
Adjust all 1% sales tax allocation away from streets to General Fund Street projects will be postponed General Fund capital will be delayed We have already affected the sewer facility We have been to this trough before Not sure when, if ever, we will be able to adjust
the allocation back to the Streets or GF capital
1% Sales Tax DistributionC hanges to the 1% S ales T ax Policy
Description %B udgeted for
FY 2008%
O riginal 07-08
Policy% A mended Policy %
FY 08-09 Policy
Proposal
E stimated 1% S ales T ax $4,587,000 $4,090,000 $4,090,000 $4,090,000
Recreation C enter D ebt S ervice
(D S ) plus O perations and
M aintenance (O &M )
1,488,700
1,751,500 1,751,500 1,751,500
N et of Recreation C enter C osts 3,098,300 2,338,500 2,338,500 2,338,500
O ther D istributions
G eneral G overnment O &M 19% 588,677 19% 444,315 50% 1,169,250 100% 2,338,500
S treet Improvements 27% 836,541 27% 631,395 30% 701,550 0
S ewer F acility Improvements 27% 836,541 27% 631,395 0% 0 0
G eneral G overnment F acilities 27% 836,541 27% 631,395 20% 467,700 0
T otal O ther D istributions 3,098,300 2,338,500 2,338,500 2,338,500
T otal S ales T ax $4,587,000 1 $4,090,000 2 $4,090,000 3 $4,090,000
N ote 1: D enotes the loss in S ales T ax epected due to the slowing of the economy.
N ote2: A mended Policy reflects mid year changes to shift monies around to help the G eneral F und
N ote 3: O ne of the options available to assist the G F until the economy turns around.
Revenue Options
Increase in sales tax All current 1% sales tax allocations remain in
place Street projects can be scheduled with sales tax
revenue General Fund capital, too, will be scheduled
with sales tax revenue We will still need to watch our spending, but
will be able to avoid layoffs Will make every effort to keep existing
programs and contributions to outside agencies
Sales Tax Comparison
T ax Rates
C ommunity Privilege U se C ontracting
C amp Verde 2.00% 2.00% 3.00%
C larkdale 2.25% 3.25%
C hino Valley 3.00% 3.00% 3.00%
D ewey - H umboldt - C entral Y avapai F D 2.00% 2.00% 2.00%
D ewey - H umboldt - M ayer F D 2.00% 2.00% 2.00%
J erome 3.00% 3.00%
Prescott 2.00% 2.00% 2.00%
Prescott Valley 2.33% 2.33% 2.33%
S edona - Y avapai C o. 3.00% 3.00% 3.00%
C ottonwood 2.20% 0.00% 3.20%
Property Tax Comparison
T ax Rates
C ommunity Notes
C ounty /
C ollege S chools C ity
S pecial
D ist Fire D ist T otal
C amp Verde 1 3.41% 4.84% 2.31% 2.25% 12.81%
C larkdale 3.41% 4.08% 0.71% 1.63% 9.83%
C hino Valley 3.41% 4.46% 2.67% 10.54%
D ewey - H umboldt - C entral Y avapai F D 2 3.41% 4.59% 3.30% 1.89% 13.19%
D ewey - H umboldt - M ayer F D 2 3.41% 4.59% 3.30% 3.25% 14.55%
J erome 3.41% 4.08% 0.90% 8.39%
Prescott 3.41% 3.45% 0.50% 7.36%
Prescott Valley 3.41% 4.59% 1.89% 9.89%
S edona - Y avapai C o. 3.41% 2.25% 1.75% 7.41%
C ottonwood 3.41% 4.31% 0.00% 0.00% 0.00% 7.72%
N ote 1: C amp Verde has a S anitation D istrict, which handles wastewater
N ote 2: D ewey H umboldt has several C ommunity F acility D isticts which help finance infrastructure
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