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FISCAL YEAR 2009-2010 FISCAL YEAR 2009-2010 PROPOSED BUDGETPROPOSED BUDGET
City of Costa MesaCity of Costa Mesa
Budget Study Session
June 9, 2009
22
BUDGET STUDY SESSIONBUDGET STUDY SESSION
Study Session Agenda:– Overview of Proposed FY09-10 Budget– Review Budget Balancing Strategies and
progress towards implementation– Review Service Impacts from Budget
Cuts to address Operating Deficit – Questions/comments from City Council Questions/comments from City Council
33
FY09-10 Proposed Operating FY09-10 Proposed Operating and Capital Improvement and Capital Improvement
BudgetBudget Represents Management’s Represents Management’s
Recommended Budget to;Recommended Budget to;
– Address City Council’s priorities Address City Council’s priorities withinwithin
– Existing Financial Constraints toExisting Financial Constraints to– Fulfill the Service Requirements of Fulfill the Service Requirements of
the Community.the Community.
44
Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget Nov. 08 Study Session $8.4m cuts Dec. 08 Budget K/O 5% A.T.B. Feb. 09 Dept. Hearings Addtl.
5% Feb. 09 Mid-Year CSS F.B. to $11m Apr. 09 CSS 10 B.D.S. $19m June 09 Budget Submission FB $14m June 16 Budget Adoption
55
Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget Gap between “expectations” and Gap between “expectations” and
“financial reality” has gradually “financial reality” has gradually widened over past ten years.widened over past ten years.– $11.5 added annually in new programs $11.5 added annually in new programs
and services over past ten years.and services over past ten years.– No new revenues to fund growth in No new revenues to fund growth in
servicesservices– Coupled with inflationary increases in all Coupled with inflationary increases in all
other expendituresother expenditures
Coupled with effects of a prolonged Coupled with effects of a prolonged severe economic downturn. severe economic downturn.
66
Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget
Unlike in prior years where focus Unlike in prior years where focus was on expanding programs and was on expanding programs and service,service,
Focus is on scaling back Focus is on scaling back expectations and service levels to expectations and service levels to level that is supportable within level that is supportable within current fiscal constraints. current fiscal constraints.
77
Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget
Proposed budget represents Proposed budget represents largest single year reduction in largest single year reduction in operating costs in City’s history.operating costs in City’s history.
88
BUDGET SUMMARYBUDGET SUMMARYAll Funds All Funds (including transfers)(including transfers)
FY 09-10 Estimated Revenues $ 114,388,526FY 09-10 Estimated Revenues $ 114,388,526
Utilization of Fund Balance 4,083,237Utilization of Fund Balance 4,083,237
FY 09-10 Total Resources 118,471,763FY 09-10 Total Resources 118,471,763
FY 09-10 Appropriations 118,471,763*FY 09-10 Appropriations 118,471,763*
*18.38% reduction from FY08-09 Adopted Budget*18.38% reduction from FY08-09 Adopted Budget
99
TOTAL OPERATING TOTAL OPERATING BUDGETBUDGETAll FundsAll Funds
Proposed FY 09-10Proposed FY 09-10 $ 112,064,743 $ 112,064,743
Adopted FY 08-09Adopted FY 08-09 128,440,254 128,440,254
Amount of Amount of DecreaseDecrease $ (16,375,511) $ (16,375,511)
Percent of Percent of DecreaseDecrease (12.75 %) (12.75 %)
1010
TOTAL CAPITAL TOTAL CAPITAL IMPROVEMENT BUDGETIMPROVEMENT BUDGET - - All All FundsFunds
Proposed FY 09-10Proposed FY 09-10 $ 4,864,020 $ 4,864,020
Adopted FY 08-09Adopted FY 08-09 11,150,477 11,150,477
Amount of DecreaseAmount of Decrease $ (6,286,457) $ (6,286,457)
Percent of Decrease Percent of Decrease (56.38 %) (56.38 %)
1111
CIP FUNDING SOURCECIP FUNDING SOURCE Five-Year Historical Five-Year Historical ComparisonComparison
1212
TOTAL APPROPRIATIONSTOTAL APPROPRIATIONSAll FundsAll Funds
FY 08-09Adopted
FY 09-10Proposed
18.38%
1313
TOTAL APPROPRIATIONSTOTAL APPROPRIATIONSAll FundsAll Funds
Proposed FY 09-10Proposed FY 09-10 $ 118,471,763 $ 118,471,763
Adopted FY 08-09Adopted FY 08-09 145,155,931 145,155,931
Amount of Decrease Amount of Decrease $ (26,684,168) $ (26,684,168)
Percent of Decrease Percent of Decrease
(18.38 %)(18.38 %)
1414
TOTAL APPROPRIATIONSTOTAL APPROPRIATIONSBy Fund TypeBy Fund Type
Total $118,471,763
1515
TOTAL RESOURCESTOTAL RESOURCESGovernmental Funds Governmental Funds OnlyOnly
Total $112,306,099
1616
TOTAL APPROPRIATIONS TOTAL APPROPRIATIONS Governmental Funds Governmental Funds OnlyOnly
Total $112,306,099
1717
DISTRIBUTION OF APPROPRIATIONSDISTRIBUTION OF APPROPRIATIONSBy Major Service Category By Major Service Category - All Funds- All Funds
Total $118,471,763
1818
DISTRIBUTION OF APPROPRIATIONSDISTRIBUTION OF APPROPRIATIONSBy Major Service Category By Major Service Category - All - All FundsFunds
Protection of Persons and Property $ 64,044,034Protection of Persons and Property $ 64,044,034
Community Health and EnvironmentCommunity Health and Environment 10,461,781 10,461,781
TransportationTransportation 7,779,640 7,779,640
Leisure and Community ServicesLeisure and Community Services
3,828,5933,828,593
General Government Support 27,493,695General Government Support 27,493,695
Capital Improvement Projects 4,864,020Capital Improvement Projects 4,864,020
TotalTotal $ 118,471,763 $ 118,471,763
1919
DISTRIBUTION OF APPROPRIATIONSDISTRIBUTION OF APPROPRIATIONSBy Major Service Category By Major Service Category - All - All FundsFunds
FY08-09FY08-09 FY09-10 FY09-10 Decrease Decrease
P.P.P. $ 69,914,263 $ 64,044,034 $ 5,870,229P.P.P. $ 69,914,263 $ 64,044,034 $ 5,870,229
C.H.E. 12,029,100 10,461,781 1,567,319C.H.E. 12,029,100 10,461,781 1,567,319
Trans. 8,645,280 7,779,640 865,640Trans. 8,645,280 7,779,640 865,640
L.C.S. 4,264,567 3,828,593 435,974L.C.S. 4,264,567 3,828,593 435,974
G.G.S. 39,152,242 27,493,695 11,658,547G.G.S. 39,152,242 27,493,695 11,658,547
C.I.P. 11,150,477 4,864,020 6,286,457C.I.P. 11,150,477 4,864,020 6,286,457
Total $ 145,155,931 $ 118,471,763 $26,684,168Total $ 145,155,931 $ 118,471,763 $26,684,168
2020
SUMMARY OF APPROPRIATIONSSUMMARY OF APPROPRIATIONS
By Major Account – All FundsBy Major Account – All Funds
Total $118,471,763
2121
DISTRIBUTION OF SALARIES & DISTRIBUTION OF SALARIES &
BENEFITSBENEFITS By Department - All FundsBy Department - All Funds
Total $86,408,314
2222
Total $102,527,549
SUMMARY OF APPROPRIATIONSSUMMARY OF APPROPRIATIONS By Major Account – General FundBy Major Account – General Fund
2323
FY 09-10 Est. RevenuesFY 09-10 Est. Revenues
Transfers InTransfers In
Use of Fund BalanceUse of Fund Balance
FY 09-10 Total ResourcesFY 09-10 Total Resources
FY 09-10 Proposed FY 09-10 Proposed
Budget *Budget *
$ 96,906,200$ 96,906,200
793,000793,000
4,828,3494,828,349
$ 102,527,549$ 102,527,549
$ 102,527,549$ 102,527,549
* Includes Transfers Out* Includes Transfers Out
GENERAL FUND GENERAL FUND SUMMARYSUMMARY
2424
GENERAL FUND GENERAL FUND APPROPRIATIONSAPPROPRIATIONS
Total $102,527,549
2525
GENERAL FUND GENERAL FUND APPROPRIATIONSAPPROPRIATIONS
FY 09-10 ProposedFY 09-10 Proposed $102,527,549 $102,527,549
FY 08-09 AdoptedFY 08-09 Adopted 118,835,464 118,835,464
Amount Decrease Amount Decrease $ 16,307,915$ 16,307,915
Percent DecreasePercent Decrease 13.72 % 13.72 %
2626
GENERAL FUNDGENERAL FUNDWhat does the decrease consist of?What does the decrease consist of?
FY 08-09 FY 09-10FY 08-09 FY 09-10AppropriationsAppropriations AdoptedAdopted ProposedProposed DecreaseDecrease
Salaries 52,189,622 47,498,772 4,690,850Salaries 52,189,622 47,498,772 4,690,850
Overtime 5,184,178Overtime 5,184,178 3,303,062 1,881,116 3,303,062 1,881,116
RetirementRetirement 15,823,401 15,082,901 15,823,401 15,082,901
740,500740,500
Debt Service 6,184,401 3,394,616 2,789,785Debt Service 6,184,401 3,394,616 2,789,785
Internal Rent 4,359,022 2,112,806 2,246,216Internal Rent 4,359,022 2,112,806 2,246,216
SubtotalSubtotal 83,740,624 83,740,624 71,392,157 71,392,157 12,348,467 12,348,467
Other AccountsOther Accounts 35,094,84035,094,840 31,135,392 3,959,448 31,135,392 3,959,448
Total $118,835,464 $102,527,549 $16,307,915Total $118,835,464 $102,527,549 $16,307,915
2727
TEN YEAR HISTORICALTEN YEAR HISTORICAL EXPENDITURES – By EXPENDITURES – By DepartmentDepartment
2828
GENERAL FUND RESOURCESGENERAL FUND RESOURCESIncluding Transfers InIncluding Transfers In
Total $97,699,200
2929
SALES TAX COLLECTIONSSALES TAX COLLECTIONSBy Business Categories – CY 2008By Business Categories – CY 2008
3030
SALES & USE TAXSALES & USE TAXGeneral Fund – includes Sales Tax In-General Fund – includes Sales Tax In-LieuLieu
FY 09-10 Estimated RevenueFY 09-10 Estimated Revenue $ 39,874,000 $ 39,874,000
FY 08-09 Estimated Revenue 44,167,500*FY 08-09 Estimated Revenue 44,167,500*
Amount Decrease Amount Decrease $ 4,293,500 $ 4,293,500
Percent Decrease Percent Decrease (9.72 %) (9.72 %)
* As revised at Mid Year* As revised at Mid Year
3131
SALES & USE TAX HISTORYSALES & USE TAX HISTORYGeneral FundGeneral Fund
3232
PROPERTY TAXPROPERTY TAXGeneral FundGeneral Fund
FY 09-10 Estimated RevenueFY 09-10 Estimated Revenue $ 30,795,000 $ 30,795,000
FY 08-09 Estimated Revenue FY 08-09 Estimated Revenue 31,285,000*31,285,000*
Amount Decrease Amount Decrease $ 490,000 $ 490,000
Percent Decrease Percent Decrease (1.57 %) (1.57 %)
* As revised at Mid Year* As revised at Mid Year
3333
PROPERTY TAX HISTORYPROPERTY TAX HISTORYGeneral FundGeneral Fund
3434
TEN-YEAR REVENUE COMPARISON TEN-YEAR REVENUE COMPARISON SALES & PROPERTY TAXES - General SALES & PROPERTY TAXES - General FundFund
3535
State Budget ImpactsState Budget Impacts
Potential State Takeaways - 8% Reduction
Current New
FY 08-09 FY 09-10 FY 09-10
Budgeted Proposed Proposed
Revenues 8% Revenues Revenues
Property Tax 22,535,000 1,802,800 22,045,000
20,242,200
Property Tax in Lieu of VLF 8,500,000 680,000
8,750,000
8,070,000
31,035,000 2,482,800 30,795,000
28,312,200
Sales Tax in Lieu of
Property Tax (Triple Flip) 10,867,500 869,400
9,500,000
8,630,600
Total 41,902,500 3,352,200 40,295,000
36,942,800
3636
FY 08-09 Fiscal Year EndFY 08-09 Fiscal Year End
Total Fund BalanceTotal Fund Balance
FY 07-08 Ending Fund Balance $ 66.2mFY 07-08 Ending Fund Balance $ 66.2m
Current year estimated changeCurrent year estimated change ($ ($ 14.0m)14.0m)
FY 08-09 Est. Ending F.B.FY 08-09 Est. Ending F.B. $ 52.2m $ 52.2m
3737
FY 08-09 Fiscal Year EndFY 08-09 Fiscal Year End
Reserved $ 15.8 millionReserved $ 15.8 million
Unreserved designated Unreserved designated $ 29.8 $ 29.8
millionmillion
Unreserved undesignated Unreserved undesignated $ 6.6 $ 6.6
millionmillion
FY 08-09 Ending Fund FY 08-09 Ending Fund Balance $ 52.2 millionBalance $ 52.2 million
3838
FY 08-09 Fiscal Year EndFY 08-09 Fiscal Year End
Fund BalanceFund BalanceReserved – the portion of a governmental fund’s net assets Reserved – the portion of a governmental fund’s net assets
that is not available for appropriation.that is not available for appropriation.
Unreserved designated – Management’s intended use of Unreserved designated – Management’s intended use of available expendable financial resources in governmental available expendable financial resources in governmental funds reflecting actual plans approved by the funds reflecting actual plans approved by the government’s senior management. Designations reflect a government’s senior management. Designations reflect a government’s self-imposed limitations on the use of government’s self-imposed limitations on the use of otherwise available expendable financial resources in otherwise available expendable financial resources in governmental funds.governmental funds.
Unreserved undesignated – available expendable financial Unreserved undesignated – available expendable financial resources in a governmental fund that are not the object resources in a governmental fund that are not the object of tentative management plans (i.e., designations).of tentative management plans (i.e., designations).
3939
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
4040
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
1.1. ReduceReduce Departmental Operating Departmental Operating Budgets by an additional 5% for an Budgets by an additional 5% for an average reduction of 10% by average reduction of 10% by Department from the prior fiscal Department from the prior fiscal year which will require the year which will require the elimination of approximately elimination of approximately 23 23 full-time positionsfull-time positions..
Estimated Impact:Estimated Impact: 6,318,1346,318,134
4141
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status: Implementation Status: – Total departmental expenditure Total departmental expenditure
reductions amounted to reductions amounted to $8.8 million$8.8 million. . – Includes both structural as well as Includes both structural as well as
one-year reductions.one-year reductions.– HoweverHowever, the Proposed Budget does , the Proposed Budget does
not include any full-time staffing not include any full-time staffing reductions pending results of the reductions pending results of the PERS Retirement Incentive.PERS Retirement Incentive.
4242
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
2.2. Negotiate reduction in employee Negotiate reduction in employee compensation equating to compensation equating to approximately 5% of salary. approximately 5% of salary.
Estimated Impact:Estimated Impact: $3,623,663$3,623,663
4343
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES Implementation Status: Implementation Status:
– Proposed budget assumes a 5% reduction Proposed budget assumes a 5% reduction of base salary and all related of base salary and all related appropriations amounting to $3.6 million.appropriations amounting to $3.6 million.
– Assumption is based on understanding Assumption is based on understanding that negotiations will take place with that negotiations will take place with employee associations during fiscal year employee associations during fiscal year to ensure a reduction is made. to ensure a reduction is made.
– If negotiations fail, it will have an impact If negotiations fail, it will have an impact on current staffing levels or use of G.F. on current staffing levels or use of G.F. fund balance.fund balance.
4444
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
3.3. Reduction of $1 million in non-Reduction of $1 million in non-reimburseable overtime for reimburseable overtime for Police and Fire departments. Police and Fire departments.
Estimated Impact:Estimated Impact: $1 $1 millionmillion
4545
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status:Implementation Status:
– Proposed budget assumes a Proposed budget assumes a reduction in Police dept. overtime of reduction in Police dept. overtime of $534,078 and,$534,078 and,
– Assumes a reduction in Fire dept. Assumes a reduction in Fire dept. overtime of $465,922.overtime of $465,922.
4646
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
4.4. Negotiated suspension of Negotiated suspension of minimum manning requirements minimum manning requirements in the Fire Department in order in the Fire Department in order to accomplish the proposed to accomplish the proposed overtime expenditure reduction overtime expenditure reduction included in the previous budget included in the previous budget development strategy. development strategy.
4747
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status:Implementation Status:
– Currently discussing suspension of Currently discussing suspension of minimum manning requirements minimum manning requirements with the Costa Mesa Firefighters with the Costa Mesa Firefighters Association.Association.
4848
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
5.5. Seek Federal Stimulus funding Seek Federal Stimulus funding for ten police officer positions to for ten police officer positions to be eliminated due to Police be eliminated due to Police department budget reductions. department budget reductions.
Estimated Impact: $1,052,010Estimated Impact: $1,052,010
4949
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status:Implementation Status:– During the month of April, the City During the month of April, the City
Manager and Police Chief officially Manager and Police Chief officially transmitted the application for transmitted the application for Federal Stimulus funding for Police Federal Stimulus funding for Police Officer positions. The application was Officer positions. The application was made for 18 positions with hopes of made for 18 positions with hopes of receiving funding for 10. The City receiving funding for 10. The City was notified it would receive a was notified it would receive a response prior to September 30.response prior to September 30.
5050
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
6.6. Offer PERS retirement incentive to Offer PERS retirement incentive to create vacancies to:create vacancies to:
(a) reduce the number of personnel that may (a) reduce the number of personnel that may be laid off as a result of reductions in be laid off as a result of reductions in departmental operating budgets and,departmental operating budgets and,
(b) create additional vacancies needed for (b) create additional vacancies needed for budgetary purposes (assumes total of 50 budgetary purposes (assumes total of 50 employees opting to retire of which 25 employees opting to retire of which 25 positions would be eliminated).positions would be eliminated).
Estimated Impact:Estimated Impact: $3,485,000$3,485,000
5151
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status:Implementation Status:– Staff is preparing all necessary paperwork Staff is preparing all necessary paperwork
for the PERS Retirement Incentive to be for the PERS Retirement Incentive to be acted on and implemented. The estimated acted on and implemented. The estimated window of time for employees to make an window of time for employees to make an election is through September, 2009.election is through September, 2009.
– No staff reductions included in proposed No staff reductions included in proposed budget.budget.
– Staff will propose budget amendments to Staff will propose budget amendments to reduce expenditures when staff impacts are reduce expenditures when staff impacts are known. known.
5252
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
7.7. Suspension or termination of the Suspension or termination of the Retiree Health Savings (RHS) Retiree Health Savings (RHS) Plan. (Contributions are Plan. (Contributions are comprised of 1% by Employee comprised of 1% by Employee and 1% by Employer).and 1% by Employer).
Estimated Impact: $508,764 Estimated Impact: $508,764
5353
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status:Implementation Status:– RHS plan can be suspended instead RHS plan can be suspended instead
of terminated. of terminated. – Currently conducting discussions to Currently conducting discussions to
suspend RHS contributions made by suspend RHS contributions made by both employer and employee. both employer and employee.
– When staff successfully concludes When staff successfully concludes negotiations, budget will be negotiations, budget will be amended to include expenditure amended to include expenditure reductions. reductions.
5454
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
8.8. Implement various cost recovery Implement various cost recovery programs including resident EMS programs including resident EMS fees, inspection fees, and Police fees, inspection fees, and Police and Fire cost reimbursement and Fire cost reimbursement fees. fees.
Estimated Impact: $959,700Estimated Impact: $959,700
5555
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES Implementation Status:Implementation Status:
– At it’s June 2, 2009, City Council At it’s June 2, 2009, City Council approved some but not all of the fees approved some but not all of the fees proposed. The projected shortfall is proposed. The projected shortfall is $809,700.$809,700.
– Additional funding necessary will need Additional funding necessary will need to be appropriated from fund balance or,to be appropriated from fund balance or,
– Additional program and service cuts Additional program and service cuts made to offset the estimated revenue made to offset the estimated revenue loss. loss.
5656
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
9.9. Renegotiate/extend the Golf Renegotiate/extend the Golf Course Operator’s agreement Course Operator’s agreement for a greater share of the for a greater share of the revenues and institute formulaic revenues and institute formulaic adjustments to the greens fees. adjustments to the greens fees.
Estimated Impact:Estimated Impact: $244,850$244,850
5757
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES Implementation Status:Implementation Status:
– Staff has successfully renegotiated the Staff has successfully renegotiated the Operator’s agreement and it will be Operator’s agreement and it will be considered by City Council at its June 16 considered by City Council at its June 16 meeting. meeting.
Change in agreement will increase golf Change in agreement will increase golf revenue to the City by $112,500 annually.revenue to the City by $112,500 annually.
Also, City will receive one-time payment Also, City will receive one-time payment of $190,000 for adjustment to Golf Course of $190,000 for adjustment to Golf Course CIP reserve.CIP reserve.
Total FY09-10 Impact $302,500.Total FY09-10 Impact $302,500.
5858
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
10.10. Utilization of undesignated Utilization of undesignated unreserved General Fund fund unreserved General Fund fund balance.balance.
Estimated Impact:Estimated Impact: $2.9 $2.9 millionmillion
5959
BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES
Implementation Status: Implementation Status: – Proposed budget includes total use Proposed budget includes total use
of GF fund balance at $4,828,349. of GF fund balance at $4,828,349. – Includes potential savings from PERS Includes potential savings from PERS
retirement incentive and RHS retirement incentive and RHS suspension of plan contributions. suspension of plan contributions.
6060
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS
6161
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS If substantially approved as submitted the If substantially approved as submitted the
budget development strategies will eliminate budget development strategies will eliminate over over 100,000100,000 man hours. man hours.
Proposed staffing levels will be lower than Proposed staffing levels will be lower than staffing levels almost 25 years ago.staffing levels almost 25 years ago.
Staffing reduction will impact both the quality Staffing reduction will impact both the quality and quantity of service to the public. In many and quantity of service to the public. In many instances, the specific impacts will not be instances, the specific impacts will not be known until after the Retirement Incentive known until after the Retirement Incentive takes full effect. takes full effect.
6262
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Close Downtown Recreation Center pool from Close Downtown Recreation Center pool from
October to April.October to April.
Elimination of funding for planting of 250 Elimination of funding for planting of 250 trees, park and open space clean-up crew, trees, park and open space clean-up crew, weekly median maintenance.weekly median maintenance.
Reduction of public safety staffing (specific Reduction of public safety staffing (specific impacts will not be known until after the impacts will not be known until after the Retirement Incentive takes full effect). Retirement Incentive takes full effect).
6363
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Elimination of most weekend and after Elimination of most weekend and after
business hour video production programs,business hour video production programs,
Elimination of paving two residential streets Elimination of paving two residential streets including reduction in use of 750 tons of including reduction in use of 750 tons of asphalt in street program,asphalt in street program,
Reduction in City’s ability to respond to Reduction in City’s ability to respond to knockdowns and unexpected traffic signal knockdowns and unexpected traffic signal repairs, repairs,
6464
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reduction of right-of-way weed control by 10% Reduction of right-of-way weed control by 10%
resulting in more visible weeds along City resulting in more visible weeds along City streets, alleys and sidewalks,streets, alleys and sidewalks,
Elimination of all turf and landscape Elimination of all turf and landscape fertilization resulting in a decline in aesthetic fertilization resulting in a decline in aesthetic quality of parks and landscape and “turf quality of parks and landscape and “turf healing”ability in high traffic areas,healing”ability in high traffic areas,
Reduction in contract maintenance of Reduction in contract maintenance of TeWinkle Lake, elimination of “Mutt Mitt” TeWinkle Lake, elimination of “Mutt Mitt” program in all parks, and elimination of routine program in all parks, and elimination of routine replacement of park furniture and amenities,replacement of park furniture and amenities,
6565
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reduction in Youth and Family programs, Reduction in Youth and Family programs,
Mobile Recreation Program, Youth Basketball Mobile Recreation Program, Youth Basketball and Football, Concerts in the Parks, and Football, Concerts in the Parks, suspension of Youth in Government, suspension of Youth in Government,
Reduced funding for Cultural Arts and Reduced funding for Cultural Arts and Historic Preservation Committees,Historic Preservation Committees,
Reduction in staff hours supporting Fairview Reduction in staff hours supporting Fairview Park Improvements, Park Improvements,
6666
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reductions in small tools, materials, Reductions in small tools, materials,
equipment, supporting Graffiti Removal equipment, supporting Graffiti Removal Program,Program,
Suspension of Police Department Recruiting Suspension of Police Department Recruiting Program,Program,
Significant reduction in funding for Water Significant reduction in funding for Water Quality inspections, termination of catch Quality inspections, termination of catch basin entrance lid and screen repair/ basin entrance lid and screen repair/ replacement program, replacement program,
6767
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reduced Measure M funding for street Reduced Measure M funding for street
repairs due to reallocation of General Fund repairs due to reallocation of General Fund expenditures to the Measure M fund, expenditures to the Measure M fund,
Postponement of needed computer hardware Postponement of needed computer hardware and software replacement, and software replacement,
Elimination of all non-mandatory training and Elimination of all non-mandatory training and professional development,professional development,
6868
SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Postponement of most scheduled vehicle and Postponement of most scheduled vehicle and
equipment replacement,equipment replacement,
Elimination of Building Repair and Elimination of Building Repair and Maintenance projects.Maintenance projects.– Deferred repairs = Deferred liabilities.Deferred repairs = Deferred liabilities.– Deferred liabilities = Increased future Deferred liabilities = Increased future
liabilities.liabilities.
6969
Our Future – Moving Our Future – Moving ForwardForward The current situation is a combination of the The current situation is a combination of the
recession, reoccurring expenditures exceeding recession, reoccurring expenditures exceeding annual revenues, community demands for annual revenues, community demands for additional services/capital projects and additional services/capital projects and continuing State budget impactscontinuing State budget impacts..
The City cannot control all of these but must The City cannot control all of these but must address those which it can control.address those which it can control.
Necessary reductions proposed for FY 09-10 will Necessary reductions proposed for FY 09-10 will fuel future demands for restoration of services, fuel future demands for restoration of services, salaries & benefits, deferred maintenance and salaries & benefits, deferred maintenance and capital projects.capital projects.
Time to revisit policy directives and financial Time to revisit policy directives and financial planning before these demands are upon us.planning before these demands are upon us.
7070
FISCAL YEAR 2009-2010 FISCAL YEAR 2009-2010 PROPOSED BUDGETPROPOSED BUDGET
City of Costa MesaCity of Costa Mesa
Budget Study Session
Questions?
7171
FISCAL YEAR 20O9-2010 FISCAL YEAR 20O9-2010 PROPOSED BUDGETPROPOSED BUDGET Copies available for Public Viewing at:Copies available for Public Viewing at:
City Clerk’s Office at 77 Fair DriveCity Clerk’s Office at 77 Fair Drive
(City Hall – 1(City Hall – 1stst Floor) Floor)
Public Libraries at:Public Libraries at:
Costa Mesa Branch, 1855 Park AvenueCosta Mesa Branch, 1855 Park Avenue
Mesa Verde Branch, 2969 Mesa Verde Mesa Verde Branch, 2969 Mesa Verde DriveDrive
City’s Website: City’s Website: www.ci.costa-mesa.ca.uswww.ci.costa-mesa.ca.us Additional information contact 714-754-5243Additional information contact 714-754-5243
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FISCAL YEAR 20O9-2010 FISCAL YEAR 20O9-2010 PROPOSED BUDGETPROPOSED BUDGET COMMUNITY BUDGET BRIEFINGCOMMUNITY BUDGET BRIEFING
Thursday, June 11, 2009 at 6:00 inThursday, June 11, 2009 at 6:00 in
Conference Room 1AConference Room 1A
PUBLIC HEARING AND ADOPTIONPUBLIC HEARING AND ADOPTION
Tuesday, June 16, 2009 at 7:00 in Tuesday, June 16, 2009 at 7:00 in Council Chambers Council Chambers
7373
FISCAL YEAR 2009-2010 FISCAL YEAR 2009-2010 PROPOSED BUDGETPROPOSED BUDGET
City of Costa MesaCity of Costa Mesa
Budget Study Session
June 9, 2009