View
220
Download
0
Category
Preview:
Citation preview
7/31/2019 Final Management Partners
1/30
Cityof
Long
Beach
FinanciallySustainableBudgetStrategies
CityCouncilBriefingJune19,2012
7/31/2019 Final Management Partners
2/30
TonightsFocus
ProjectPurposeandApproach
FinancialSustainability
Trends
and
Best
Practices
BenchmarkingResults
Preliminary
Opportunities
for
Long
Beach NextSteps
2
7/31/2019 Final Management Partners
3/30
ProjectPurpose
ConductascanoftheCityofLongBeach
government
Identifyopportunitiesforrestructuring,
reforming
or
otherwise
improving
the
organizationtoachievelongtermfinancial
sustainability
Reviewbest
practices
from
large
municipalitiesforapplicabilitytoLongBeach
3
7/31/2019 Final Management Partners
4/30
ProjectApproach
Reviewedbackgroundinformation
Budgetdocuments
Departmentorganizationchartsandvacancies
CityCharterandothergovernancedocuments
Conductedinterviews
Conductedbenchmarking
Researchedbest
practices
and
current
trends
4
7/31/2019 Final Management Partners
5/30
FinancialSustainabilityTrends
andBest
Practices
Changestoservicedeliverymodels
Outsourcing,privatization
Sharingserviceswithotheragencies
Changingpublicsafetydeploymentmodels
Changesincompensation
Pensionstructureandfunding
Overtime,specialty
or
incentive
pay
Employeebenefitscontributions
5
7/31/2019 Final Management Partners
6/30
FinancialSustainabilityTrends
andBest
Practices
Revenueenhancements
Fullcost
recovery
for
user
fees
Taxmeasures
Expenditure
controls
and
shifts Internalreorganizationtoconsolidate
redundantorcomplementaryfunctions
Servicelevel
reductions
as
alast
resort
6
7/31/2019 Final Management Partners
7/30
TrendsandBestPracticesinLongBeach
Somearebeingimplemented
Expenditurecontrols
and
shifts
Quarterlyreviewoffees
Pensionreformandcostsharing
Consolidationof
plans
review
and
inspections,
policeandfiredispatch
WiththedirectionoftheCityCouncil,all
departmentshave
reduced
budgets
proportionatelyinrecentyears
7
7/31/2019 Final Management Partners
8/30
GeneralFundReductionsSinceFY2004
Implementeddeficitreductionsolutions
totaling$208.7
million
Eliminated25%oftheworkforce(857FTE)
Reduced
management
staff
by
28%
Consolidatedbureausanddivisionsto
eliminatetwodepartments
8
7/31/2019 Final Management Partners
9/30
GeneralFundReductionsSinceFY2004
RestructuredvariousCityoperationstoreduce
costsincluding
code
enforcement,
inspection
services
Increasedemployeecontributionstohealth
andretirementcosts
Reducedservicelevelsthroughoutthe
organization
9
7/31/2019 Final Management Partners
10/30
BenchmarkingComparisons
10
PeerAgency Population1 GeneralFundExpenditures2Anaheim 343,793
$226,063,414
Bakersfield 354,480 $176,431,500
Fresno 505,009 $214,775,200
Oakland 395,341 $391,609,934
Sacramento 470,956 $356,824,000
SanDiego 1,321,315 $1,128,388,274
SantaAna 327,731 $210,013,205
LongBeach 464,662 $392,004,6021 Source:CaliforniaDepartmentofFinance,January20122 Source:AdoptedFY1112budgets
7/31/2019 Final Management Partners
11/30
GeneralFundExpendituresperCapita
11
$658
$498
$425
$991
$758$854
$641
$844
$300
$400
$500
$600
$700
$800
$900
$1,000
Median$658
Source:
Adopted
FY
11
12
budgets
7/31/2019 Final Management Partners
12/30
TotalStaffingper1,000Population(AllFunds)
12
5.59
4.07
6.37
9.50
8.67
7.74
4.61
11.14
2.00
4.00
6.00
8.00
10.00
12.00
Median
6.37
Source:
Adopted
FY
11
12
budgets
7/31/2019 Final Management Partners
13/30
GeneralFundPublicSafetyExpendituresas
Percentof
Total
General
Fund
Expenditures
13
67%
56%
82%
63%
59%
52%
73%
66%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
Median63%
Note:Citystaffpointsoutthatthepercentagerisesto68% forLongBeachwithinternaladjustments.
Source:
Adopted
FY
11
12
budgets
7/31/2019 Final Management Partners
14/30
FireStaffingper1,000Population
(Swornand
Non
sworn,
General
Fund)
14
Median0.83
Note:Excludeslifeguards(SanDiegoandLongBeach).
0.80
0.55
0.71
1.49
1.25
0.77 0.83
1.01
0.20
0.40
0.60
0.80
1.001.20
1.40
1.60
Source:
Adopted
FY
11
12
budgets
7/31/2019 Final Management Partners
15/30
7/31/2019 Final Management Partners
16/30
FireExpendituresperCapita
(GeneralFund)
16
$156
$87 $91
$232
$203
$150 $147
$156
$50
$70
$90
$110$130
$150
$170
$190
$210
$230
$250
Median$150
Source: AdoptedFY1112budgets
7/31/2019 Final Management Partners
17/30
PoliceStaffingper1,000Population
(Swornand
Non
Sworn,
General
Fund)
17
1.54
1.37
1.91
2.43
1.91 1.902.05
2.70
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
2.80
Median1.91
Source: AdoptedFY1112budgets
7/31/2019 Final Management Partners
18/30
PoliceSwornStaffingper1,000Population
(Allfunds)
18
Median1.43
1.02 1.02
1.521.61
1.43 1.49
1.24
1.84
0.00
0.20
0.40
0.600.80
1.00
1.20
1.40
1.60
1.80
2.00
Source: CityofLongBeachpeersurvey
7/31/2019 Final Management Partners
19/30
PoliceExpendituresperCapita
(GeneralFund)
19
$286
$190
$258
$392
$247
$298$319
$400
$100
$150
$200
$250
$300
$350
$400
$450
Median$286
Source: AdoptedFY1112budgets
7/31/2019 Final Management Partners
20/30
OpportunitiesforLongBeach
Combinelikefunctionstoimproveefficiency
Technologyservices
Securityservices
Dispatchservices
Legalfunctions
Plansreviewandinspections
Parks,recreation,afterschoolandlibraryprograms
Infrastructureplanning,
engineering,
construction
andmaintenance
20
7/31/2019 Final Management Partners
21/30
OpportunitiesforLongBeach
Consolidategeneralservicesintoone
department Facilitiesmaintenance,custodialservices
Fleetmanagement
Parkingmanagement
Assetmanagement
21
7/31/2019 Final Management Partners
22/30
OpportunitiesforLongBeach
Examineopportunitiesforneworincreased
sourcesof
general
fund
revenues
Userfees
Additionalchargestoenterpriseandother
governmentalfunds
Voterapprovedmeasuressuchasparcelorutility
userstaxes
Debtreliefstrategies
22
7/31/2019 Final Management Partners
23/30
OpportunitiesforLongBeach
Reviewdeploymentpractices
Evaluate
ambulance
staffing Evaluateclassificationsandassignmentstoensure
overqualifiedpersonnelarenot performinglesser
functions
Analyzepublicsafetyshiftscheduling tobetteralign
withdemand
Reevaluatealternativeworkschedules
Usehourlyorcontractemployeesfordemanddriven
activities(recreationprograms,planreviews)
23
7/31/2019 Final Management Partners
24/30
OpportunitiesforLongBeach
Continuetoreduceorcontrolcompensation
Usetotal
compensation
to
analyze
financial
impactsoflaborcostincreases
BringovertimecalculationsinalignmentwithFair
LaborStandards
Act
Reducenumberandamountsforspecialtypay
Increaseemployeecontributionstohealth,
retirementbenefits
24
7/31/2019 Final Management Partners
25/30
OpportunitiesforLongBeach
Focusonorganizationalsustainability Proportionate
share
approach
has
worked
well
forLongBeach
Caremustbetakentoensureinternalsupport
functionssuch
as
financial
management
and
humanresourceshaveadequatestaffingtobe
effective
Organizationaldevelopment
and
employee
trainingareimportantforenhancingproductivity
25
7/31/2019 Final Management Partners
26/30
OpportunitiesforLongBeach
Modernizethe1921CityChartertotake
advantageof
contemporary
management
systemsandtechniques
Createaunifiedmanagementstructuretoreduce
redundancy,share
resources,
streamline
processes
Leverageprivatesectortosupportpublicservices
throughcompetitive
pricing
26
7/31/2019 Final Management Partners
27/30
ServiceswithCompetitivenessPotential
Towing
Refusehauling
Streetsweeping
Parkingenforcement/parkinglotmanagement
Fleetmaintenance
Technologysupportservices
Workers
compensation
(third
party
administration)
27
7/31/2019 Final Management Partners
28/30
ServiceswithCompetitivenessPotential
Employeeassistanceprogram
Occupationalhealth
management
Security
Marina
Jailmanagement
Crossingguards
Backgroundchecks
28
7/31/2019 Final Management Partners
29/30
NextSteps
Additionalanalysisofdepartmentspecific
opportunities Determinepotentialcostsavings,
implementationissues
ReportbacktotheCouncilinJuly
29
7/31/2019 Final Management Partners
30/30
Questions?
JerryNewfarmer,PresidentandCEO
jnewfarmer@managementpartners.com
(513)3130503
CathyStandiford,Partner
cstandiford@managementpartners.com
(714)222
0141
30
Recommended