Final Management Partners

7/31/2019 Final Management Partners

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Cityof

Long

Beach

FinanciallySustainableBudgetStrategies

CityCouncilBriefingJune19,2012


2/30

TonightsFocus

ProjectPurposeandApproach

FinancialSustainability

Trends

and

Best

Practices

BenchmarkingResults

Preliminary

Opportunities

for

Long

Beach NextSteps

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3/30

ProjectPurpose

ConductascanoftheCityofLongBeach

government

Identifyopportunitiesforrestructuring,

reforming

or

otherwise

improving

the

organizationtoachievelongtermfinancial

sustainability

Reviewbest

practices

from

large

municipalitiesforapplicabilitytoLongBeach

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ProjectApproach

Reviewedbackgroundinformation

Budgetdocuments

Departmentorganizationchartsandvacancies

CityCharterandothergovernancedocuments

Conductedinterviews

Conductedbenchmarking

Researchedbest

practices

and

current

trends

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5/30

FinancialSustainabilityTrends

andBest

Practices

Changestoservicedeliverymodels

Outsourcing,privatization

Sharingserviceswithotheragencies

Changingpublicsafetydeploymentmodels

Changesincompensation

Pensionstructureandfunding

Overtime,specialty

or

incentive

pay

Employeebenefitscontributions

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FinancialSustainabilityTrends

andBest

Practices

Revenueenhancements

Fullcost

recovery

for

user

fees

Taxmeasures

Expenditure

controls

and

shifts Internalreorganizationtoconsolidate

redundantorcomplementaryfunctions

Servicelevel

reductions

as

alast

resort

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7/30

TrendsandBestPracticesinLongBeach

Somearebeingimplemented

Expenditurecontrols

and

shifts

Quarterlyreviewoffees

Pensionreformandcostsharing

Consolidationof

plans

review

and

inspections,

policeandfiredispatch

WiththedirectionoftheCityCouncil,all

departmentshave

reduced

budgets

proportionatelyinrecentyears

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8/30

GeneralFundReductionsSinceFY2004

Implementeddeficitreductionsolutions

totaling$208.7

million

Eliminated25%oftheworkforce(857FTE)

Reduced

management

staff

by

28%

Consolidatedbureausanddivisionsto

eliminatetwodepartments

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GeneralFundReductionsSinceFY2004

RestructuredvariousCityoperationstoreduce

costsincluding

code

enforcement,

inspection

services

Increasedemployeecontributionstohealth

andretirementcosts

Reducedservicelevelsthroughoutthe

organization

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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


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


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


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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


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


15/30


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


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



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


19/30

PoliceExpendituresperCapita

(GeneralFund)

19

$286

$190

$258

$392

$247

$298$319

$400

$100

$150

$200

$250

$300

$350

$400

$450

Median$286



20/30

OpportunitiesforLongBeach

Combinelikefunctionstoimproveefficiency

Technologyservices

Securityservices

Dispatchservices

Legalfunctions

Plansreviewandinspections

Parks,recreation,afterschoolandlibraryprograms

Infrastructureplanning,

engineering,

construction

andmaintenance

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Consolidategeneralservicesintoone

department Facilitiesmaintenance,custodialservices

Fleetmanagement

Parkingmanagement

Assetmanagement

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Examineopportunitiesforneworincreased

sourcesof

general

fund

revenues

Userfees

Additionalchargestoenterpriseandother

governmentalfunds

Voterapprovedmeasuressuchasparcelorutility

userstaxes

Debtreliefstrategies

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23/30


Reviewdeploymentpractices

Evaluate

ambulance

staffing Evaluateclassificationsandassignmentstoensure

overqualifiedpersonnelarenot performinglesser

functions

Analyzepublicsafetyshiftscheduling tobetteralign

withdemand

Reevaluatealternativeworkschedules

Usehourlyorcontractemployeesfordemanddriven

activities(recreationprograms,planreviews)

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Continuetoreduceorcontrolcompensation

Usetotal

compensation

to

analyze

financial

impactsoflaborcostincreases

BringovertimecalculationsinalignmentwithFair

LaborStandards

Act

Reducenumberandamountsforspecialtypay

Increaseemployeecontributionstohealth,

retirementbenefits

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25/30


Focusonorganizationalsustainability Proportionate

share

approach

has

worked

well

forLongBeach

Caremustbetakentoensureinternalsupport

functionssuch

as

financial

management

and

humanresourceshaveadequatestaffingtobe

effective

Organizationaldevelopment

and

employee

trainingareimportantforenhancingproductivity

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Modernizethe1921CityChartertotake

advantageof

contemporary

management

systemsandtechniques

Createaunifiedmanagementstructuretoreduce

redundancy,share

resources,

streamline

processes

Leverageprivatesectortosupportpublicservices

throughcompetitive

pricing

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27/30

ServiceswithCompetitivenessPotential

Towing

Refusehauling

Streetsweeping

Parkingenforcement/parkinglotmanagement

Fleetmaintenance

Technologysupportservices

Workers

compensation

(third

party

administration)

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ServiceswithCompetitivenessPotential

Employeeassistanceprogram

Occupationalhealth

management

Security

Marina

Jailmanagement

Crossingguards

Backgroundchecks

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NextSteps

Additionalanalysisofdepartmentspecific

opportunities Determinepotentialcostsavings,

implementationissues

ReportbacktotheCouncilinJuly

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30/30

Questions?

JerryNewfarmer,PresidentandCEO

[email protected]

(513)3130503

CathyStandiford,Partner

[email protected]

(714)222

0141

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Documents

Final Management Partners