april 28, 2009 city of glendale - finance department 1 budget study session 1 fiscal year 2009-10...

April 28, 2009April 28, 2009 City of Glendale - Finance DepartmentCity of Glendale - Finance Department 11

Budget Study Session 1Fiscal Year 2009-10

April 28, 2009April 28, 2009


2009-10 Budget Study Session 1 Agenda

Overview of 2008-09 Adoption Update of 2008-09 Budget Status 2009-10 Budget Estimates Strategies to Balance Study Session Schedule Feedback/Questions/Comments


Surplus/

Resources Expenditures (Shortfall)

Initial Budget $164,569,000 $174,537,000 ($9,968,000)

Revised Revenues 2,074,000 2,074,000 Department Reductions (5,905,000) 5,905,000 Other Vacancy Reductions (754,000) 754,000 Changes in Transfers 1,517,000 (650,000) 2,167,000 Citywide Reductions (432,000) 432,000 Unavoidable Expenses 1,316,000 (1,316,000)

Adopted Budget $168,160,000 $168,112,000 $ 48,000

General Fund - Overview 2008-09 Budget Adoption Recap


General Fund – Overview

2008-09 Actions to Adopt Budget Elimination of 43 vacant & 2 filled positions Elimination of various programs/services

SRO Middle Schools {3 sworn positions} Portion of COPPS {4 sworn positions} Downsized to One 3-person Engine in Fire {3 sworn

positions} Reduction in Recreation Program hours Reduction in Library services

Various Maintenance and Operations reduced or eliminated


General Fund - Update 2008-09 Budget Status

After 2008-09 Budget adoption, the economy begins to shift drastically… Credit/Banking crisis hits Auto sales drop up to 50% Construction related spending slows down Retail outlets close Unemployment rises General consumer spending slumps



Sales Tax – How did Glendale compare? Glendale’s October thru December 2008 sales was

11.7% lower than the same quarter one year ago. Compared to…

Burbank – 11.2% Cerritos – 16.8%

Pasadena – 13.6% El Monte – 32.1%

Los Angeles – 12.1% Long Beach – 9.6%

Adjusted for aberrations, sales tax revenues was down… 13.4% for all of LA County 16.0% for all of San Bernardino County 22.3% for all of Ventura County 14.2% for all of Southern California


General Fund – Update of 2008-09 Revised Resource Projections

Sales Tax $(3,032,000) Occupancy Tax (100,000) Other Taxes (300,000) Licenses & Permits (1,613,000) Motor Vehicle in Lieu (600,000) Charges for Services (1,250,000) Intergovernmental Revenues (25,000) Fines & Forfeitures (340,000) Use of Money & Property (869,000)

Reduction of Estimated Resources $(8,129,000))


Surplus/

Resources Expenditures (Shortfall)Adopted Budget $168,160,000 $168,112,000 $ 48,000 Adjustments since Adoption 28,000 376,000 (348,000) Revised Resources (8,129,000) (8,129,000)

Projected YE Shortfall Before Adjustments $160,059,000 $168,488,000 $(8,429,000)



General Fund – Update of 2008-09 Mid-Year Adjustments

Resource Adjustments: Use of accumulated Gas Tax to relieve

GF contribution for street projects $ 1,500,000

Expenditure Adjustments: “Hard” hiring freeze – net savings 2,425,000 Elimination of 23 vacant positions 1,814,000 Suspend Transfer to CIP 1,300,000 Transfer Project Mgmt costs to CIP 819,000 M&O Reduction Efforts – estimate 655,000

Total Recommended Adjustments $8,513,000

$ 7,013,000


General Fund – Update of 2008-09 M&O Expenditure Reduction Efforts Various energy savings measures implemented

Comprehensive energy audits of all facilities All personal appliances eliminated Office lights turned off at facilities Building Maintenance shifted to day schedules

Fleet Management consolidation Centralized fleet management Reduction in fleet size/Take-home vehicles

Reduction in fuel consumption Restricted Travel & Training


Surplus / Resources Expenditures (Shortfall)

Adopted Budget $168,160,000 $168,112,000 $ 48,000

Adjustments since Adoption 28,000 376,000 (348,000)

Resource Reduction (8,129,000) (8,129,000)

Projected YE Shortfall Before Adjustments $160,059,000 $168,488,000 $(8,429,000)

Mid-Year Recorded Adj. 1,500,000 (3,933,000) 5,433,000

Projected YE Subtotals $161,559,000 $164,555,000 $(2,996,000)

Administrative Actions (3,080,000) 3,080,000

Projected YE Budget $161,559,000 $161,475,000 $ 84,000

General Fund – Update 2008-09 Budget Status



Projected YE Subtotals $161,559,000 $164,555,000 $(2,996,000)

Changes to Arrive AtChanges to Arrive At 2009-10 Initial Budget:2009-10 Initial Budget:

Reduction in Resources (1,570,000) (1,570,000)

Increase Transfer – CIP 1,120,000 1,120,000

Increase in Expenditures 4,155,000 (4,155,000)

2009-10 Initial Budget Est. $161,109,000 $168,710,000 $(7,601,000)

General Fund – 2009-10 Budget Estimates



Changes in Resources: Decrease – Sales Tax Revenues $ (733,000) Decrease – Building & Planning Fees (198,000) Closure of Passport Services (140,000) Move Mutual Aid to Special Rev. Fund (200,000) Other Miscellaneous Revenues (299,000)

Reduction in Revenues $(1,570,000) Increase in transfer from CIP 1,120,000

Net Reduction of Resources from 2008-09 $ (450,000))



Changes in Expenditures: COLA - Glendale Police Officers Association $2,000,000 COLA - Glendale Firefighters Association 1,200,000 COLA – Glendale Police Managers 162,000 Net Increase in Transfers 663,000 Net Increase in Other Expenditures 130,000

Increase in Expenditures from 2008-09 $4,155,000



2009-10 Initial Budget $161,109,000 $168,710,000 $(7,601,000)Known Changes: GFFA COLA elimination (1,200,000) 1,200,000 Benefit/Insurance Increase (est.) 500,000 (500,000) Increase Paramedic Trans. 1,300,000 (1,300,000) Cost Allocation 1,300,000 1,300,000

Revised Initial Budget $162,409,000 $169,310,000 $(6,901,000)

General Fund – 2009-10 Strategies to Balance


General Fund – 2009-10 Other Strategies to Balance

Estimated Savings: Eliminate/Reduce contracted COLAs up to $2.0M Specific Program Reductions up to $3.6M Continue Hard Hiring Freeze up to $4.5M Change Service Models

e.g. New EMS Model up to $700K Privatization up to $500K

Graphics Employee Health Services


General Fund – 2009-10 Other Strategies to Balance

Estimated Savings: Organizational Changes / Consolidations TBD

Fleet Consolidation Graphics / Mail Services Filming Coordination & Consolidation Other

Estimated Impacts: One-time Capital Outlay Requests $160K Unfunded Recurring Expenditure Requests $620K


General Fund – 2009-10 Budget Study Session Schedule

Structure – Department Discussions Timing

2 hours Tuesday am beginning May 12th

4 hours Thursday am or pm beginning May 7th


General Fund – 2009-10 Budget Study Session Schedule

Tuesday mornings – 2 hours May 12th – Finance, Human Resources, Mgmt

Services, City Clerk, City Treasurer May 19th – City Attorney, IS, Planning May 26th – GWP & CD&H

Thursday mornings – 4 hours May 7th - Police, Fire, & Development Services May 14th – Library, Parks, Public Works May 21st – CIP May 28th - Recap


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april 28, 2009 city of glendale - finance department 1 budget study session 1 fiscal year 2009-10...

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