FY 2011-2012 Budget BriefingFY 2011-2012 Budget Briefing

General Fund Operating Budget and Fees & Charges

Budget Process Calendar

• March 22 Budget Briefing– General Fund Operating Budget– Fees and Charges

• April 12 Budget Briefing– Enterprise Funds– Capital Improvement Program– Outside Agencies

• April 26– Proposed budget presentation at City Council meeting

• May 10 – Budget Public Hearing• May 24 – Budget Adoption

FY 11-12 Budget Outlook• Revenue assumptions

– Overall slight decrease in revenues• State revenue decrease for Transit operations• Decreases in investment earnings and permit revenue

– No property tax increase– No fund balance appropriation

• Expenditure assumptions– Continuation of core services– Savings strategies with a focus on workload metrics– Expenditure increases expected for fuel, law enforcement, LGERS– No change in employee compensation and City health care

contribution

Compensation & Benefits

Compensation & Benefits

• Compensation to remain at current levels during FY 11-12.• Blue Ribbon Task Force recommendations presented to City

Council 2/22.– Operate a sustainable Health Care Program that provides

access, quality and cost-effective medical care– General Fund contribution to health care fund remain flat

• Necessitates increases to premiums, co-payments and co-insurance.

– Expansion of Employee Health Clinic– Implementation of Wellness Program with incentives– Consideration of continuation of retiree health care coverage

for future hires

Medical Plan Design Changes

• Plan Design Changes– Wellness program implementation with incentive to participate– Three plan options (HRA, Basic & Enhanced) – Increase in employee premium costs on average of 30%– Increase in member out of pocket costs (co-payments & deductibles)– Preventive services covered at 100%– Expanded capabilities of Health Services with no fee for service– Domestic Partner Benefits extended

• Wellness Program Participation– Health Risk Assessment and Biometric screenings– Non-tobacco affidavit or commit to participate in cessation program

– Participate in initial one-on-one meeting with Health Services staff

and regular follow up to ensure compliance with recommendations.

Domestic Partner Benefits

• Available during open enrollment for FY 11-12 plan year.– Anticipated cost impact of around 1%.– Prepared to offer for same-sex domestic partners as directed by City

Council.– Registration as domestic partners with City registry will be required

to verify eligibility. • Impact of IRS regulations

– Employee paid premiums for coverage post-tax– Income tax implications for value of employer subsidy for benefit– Restrictions on HRA and Flexible Spending reimbursements

Service Delivery

Brush and Leaf Collection

• Brush Collection– Return to twice per month brush collection– Financial Impact = $125,000 in expenditures

• Leaf Collection – Collect only bagged leaves

• Twice per month collection during leaf season• Bags can be provided free of charge to households• Improves efficiency of collection• Positive impact on street sweeping and water quality

– Financial Impact = $83,000 in cost savings

Solid Waste and Recycling

Waste Stream Reduction Program• Changes the way we collect solid waste and pay for it

consistent with recommendations in the Sustainability Management Plan.

• Introduces variable-sized garbage cans: 65-gallon and 95-gallon.

• Introduces single stream recycling in 95-gallon carts.• Cost of program enhancements is approximately $1 million;

proposed solid waste fee structure designed to cover costs.

Solid Waste Fee Proposal

Current Monthly Recycling Fee

Current Annual Cost

Proposed Monthly Solid Waste Fee

Proposed Annual Cost

Net Annual Increase

65-gallon $2.95 $35.40 $5.90 $70.80 $35.40

95-gallon $2.95 $35.40 $8.90 $106.80 $71.40

Fees & Charges

Fees & Charges

• Fire Inspection fees in the ETJ– Brings service up to full cost recovery by adding a 20% surcharge to

inspections in the ETJ– $25,000 anticipated in revenue

• Parking garage rates– Civic Center garage

• Hourly: 50 cents to 75 cents• Monthly: $70 to $80• Monthly discounted rates: $35 to $40

– Rankin and Wall Street garage special event rates• Special Events: $6 to $7

– Downtown resident monthly parking discount: 60%

Fees & Charges

• Special Event discount rate– In FY 10-11, City Council approved a 75% discount on permit fees for

non-profits holding special events.– To date, 49 events have qualified.

• Value of fees waived is $7,180.– Some concerns have been raised about the use of space.

• Staff is recommending a cap to the fee waiver at six events per year per group.

• Domestic Partner Registry– Fee

Fees & Charges: Water Rate Study

Goals of the Water Rate Study– Generate enough revenue to operate water utility– Make rate structure equitable– Protect the residential rate payer– Protect small businesses– Phase in any rate increases to minimize impact over time

Fees & Charges: Water Rates

Assumptions– There is enough revenue next year to avoid an across the

board rate increase– There is not enough revenue gained with small increases

in Multifamily and Small and Large Commercial rates to create a reduction in Residential rates

– Assume reduced growth of indirect costs (3% rather than 5%) and possible adjustment of Sullivan Act transfer

Fees & Charges: Water Rates

Proposals for FY 2011-2012– Hold Residential rate at current level– Adjust irrigation rates to promote conservation (1.2X

Residential?)– Adjust Multifamily from 18% discount to 15% discount– Adjust Commercial (small) from 16% discount to 15% discount– Adjust Commercial (large) from 63% discount to 60% discount

Outcomes– Brings Multifamily and small Commercial to 15% discount– Sooner action to balance rates will delay impact on Residential

rates– Small changes over time (5 years) will allow for smaller

increments

Next Steps

Schedule

• City Council April 12 Budget Review– Enterprise Funds– Capital Improvement Program– Outside Agencies Update

• April 26– Proposed budget presentation at City Council meeting

• May 10 – Budget Public Hearing• May 24 – Budget Adoption