FY12 Budget Update

November 28, 2011

FY12 Budget Update

GF 5-year Plan Update

• Initiated in FY09 to address structural deficit

• Planned use of $25 million of unallocated reserves to help minimize service level impacts

• Elimination of 286 (142 in GF) filled/vacant full-time equivalent positions through FY12 - 12% reduction from FY09 levels

• Gross budget reduction of $23.1M

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GF 5-year Plan Update

• Net budget reduction of $15.9 M with absorption of $4.1 of increases to pension and medical costs

• Reorganization of various departmental operations to improve efficiency (DOIT, MASH, Planning, PCDC)

• Actions taken to-date will result $150 M in cumulative cost avoidance through FY16

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FY12 GF Budget by Department

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Police58141362

27%

Fire39471206

18%

Debt32411180

15%Public Works19369724

9%

HS &R$9,022,726

4%

Planning7395112

3%

Transportation4818257

2%

Non-Depart$19,391,645

9%

Finance9041622

4%

City Manager4277636

2%

City Attorney 6163493

3%

HR $2,688,834

1%

City Council 1950842

1%

City Clerk1699616

1%

GF Reductions Since FY09

Cummlative Changes FY09 - FY12

Department Personnel Non-Personnel Total

City Council $0 $127,375 $127,375

City Clerk $260,023 $0 $260,023

City Attorney $483,715 $190,966 $674,681

City Manager $504,285 $192,261 $696,546

Finance $2,160,692 $408,949 $2,569,641

Fire $3,314,044 $57,963 $3,372,007

Human Resources $556,781 $190,982 $747,763

Human Services & Recreation 937,492.00 $640,584 $1,578,076

Planning $1,794,412 $898,413 $2,692,825

Police $3,504,084 $49,955 $3,554,039

Public Works $1,298,764 $866,601 $2,165,365

Transportation $196,100 $671,538 $867,638

Total General Funds Reductions $15,010,392 $4,295,587 $19,305,979

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GF Rev & Exp History & Forecast

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FY11 GF Results - Unaudited

• Revenues $3.3 million less than budgeted (rounded)

> Property, sales, utility users, and other taxes primarily

• Expenses $2.6 million less than budgeted (rounded)

> Personnel, services and supplies, and debt service primarily

• FY11 year-end deficit $6.1 million > FY11 budgeted deficit - $5.5 million

> FY11 revised deficit presented during the FY12 budget process - $5.8 million

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Use of Fund BalanceUse of $21 million FY09 – FY11

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Revised FY12 GF Budget Estimates

Addressing the $3.6 M Challenge

• Focus on structural revenue enhancements and cost reductions

• Results in programmatic adjustments

• 37 Recommendations categorized into three parts> Items recommended

> Items not recommended

> Items that require additional analysis to determine feasibility and true fiscal impact

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Recommended Changes by Dept.

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Department FY12 FY13

ExpensesCity Attorney $224,250 $64,750City Clerk $0 $20,000Finance $0 $226,023Fire $90,000 $185,160Housing $37,938 $133,876Human Services and Recreation $185,160 $441,460Planning $167,711 $209,090Police $200,000 $444,185Public Works $55,500 $141,095Transportation $0 $257,000

Expense Total $960,559 $2,122,640

RevenuesFinance $70,000 $135,000Human Services and Recreation $100,000 $300,000Planning $0 $312,500

Revenue Total $170,000 $747,500

Staff Recommended Changes $1,130,559 $2,870,140

Increase Power Fund Transfer $3,172,103 $1,586,052

Total Proposed Changes $4,302,662 $4,456,192

Items Recommended – 21 Items

• City Attorney/City Prosecutor 1. Operational reorganization - $224,250 / $64,750

• City Clerk2. Under-fill Asst City Clerk position with Deputy City

Clerk position in the Official Records Division – $0 / $20,000

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Estimated FY12 Fiscal Impact - $4.3 M / FY13 and beyond $4.5 M


• Finance3. Eliminate payroll checks/Statements of Deposit

(require all employees to use direct deposit) – $0 / $31,000

10. Institute charge to agencies for issuance of conduit bonds ($15,000 for TEFRA hearing. For bonds transactions where the City is the conduit issuer.30% with a minimum $30,000) – $10,000 / $10,000

16.Restructure Pasadena First/Local Hire Program efforts resulting in the reduction of 1 filled FTE and 1 vacant FTE – $0 / $195,023

> M-1 More aggressive Business Licensing compliance – $60,000 / $125,000

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• Fire4. Eliminate administrative captain position – $90,000 /

$185,160

• Housing17. Reassign .5 part-time MASH position to non GF

function – $14,438 / $28,876

18. Reduce Summer Rose Program stipend from $1,200 to $600 – $0 / $105,000

> M-2 Misc Administrative changes – $23,500 / $0

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• Human Services & Recreation5. Reorganize of department responsibilities resulting in

the defund two full-time vacant and two full-time filled positions – $185,160 / $441,460

12. Retool recreation program fees for service resulting in additional cost recovery – $100,000 / $300,000

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• Planning11.Merge Fire and Building inspection and reduce

combined number of inspectors by 2 vacant FTE – $104,545 / $209,090

13. Implement a .25% General Plan Maintenance and Implementation fee on all permits – $0 / $312,500

15.Restructure work assignments resulting in elimination of 2 filled FTE one in the General Fund and one in the Building Fund – $63,166 / $126,331

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• Police6. Defund five vacant non-sworn positions: 1 Police Spec

VI in Forensics; 1 Police Spec II in Records; 2 Security Rangers in Park Safety; and 1 Jailor – $200,000 / $441,460

• Public Works7. Lengthen tree trimming cycle for Slow Growing Trees –

$38,000 / $38,000

9. Reassign responsibilities resulting in elimination of 1 filled FTE – $0 / $85,595

14.Managed Savings though restructuring of facility maintenance services - $17,500 / $17,500

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Estimated FY12 Fiscal Impact - $4.3 M (FY13 and beyond $4.5 M)


• Transportation8. Reorganize department responsibilities, resulting in

two filled FTE reductions - $0 / $257,000

• Water & Power19. Increase General Fund Transfer from Power Fund by

2% in FY2012 and 1% in FY2013 - $3,172,103 / $1,586,052

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Estimated FY12 Fiscal Impact - $4.3 M (FY13 and beyond $4.6 M)

Additional Power Fund GFT

• Authorized by City Charter sections 1407 and 1408

• Absent the additional transfer only $1.1 million of enhanced revenues and reductions will be realized in FY12

• Additional transfer will also provide a cushion for further unanticipated revenue declines in FY12

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Items Not Recommended – 9 Items

• Finance20. Increase Parking fines/penalties by $20 - $0 /

$350,000

• Fire24. Brown-out Fire Company when four or more absences

occur - $846,618 / $1,693,235

• Human Services & Recreation25. Eliminate After School Programs at 12 sites - $0 /

$1,197,850

26. Eliminate Flintridge Foundation Contract to serve as Institutional Home for Youth Violence Prevention $0 / $38,900

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• Planning27. Consolidate Community Planning & General Plan

Sections resulting in the reduction of 4 filled FTEs - $0 / $478,331

• Police21. Hold five sworn positions vacant: 1 Police Corp in

Patrol 2 Police Officers in Special Enforcement 1 Police Officer in Crimes against Persons 1 Police Officer in Crimes Against Property - $300,000 / $0

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• Transportation22. Return to stricter enforcement of parking regulations -

$500,000 / $1,000,000

23. Solicit advertising on ARTS buses and/or website - $0 / $50,000

• Misc. Departments28. Expand use of contract services and reduce current

staffing - $0 / $517,130

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Additional Study Items – 7 Items

29.Relocate staff from non-City owned facilities to reconfigured City Hall – $ Unknown> Misc. Departments

30.Adjust medical benefits to cover what is actually needed and used e.g. employee or employee and dependents and only allow employees to receive 25% - 50% of allocated amount for deferred comp - $ Unknown

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31.Establish a benefits coalition for all represented group to standardize and control benefits costs - $ Unknown

32.Cap EOBF at current rate - $0 / $1,300,000

33.Employee pick up additional 1% of the employee PERS including safety employees - $0 / $775,000

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34.New employees pay full 8% of PERS - $ Unknown

• M3 Parking Tax - $ 2.5 - $3 million @10%> Transportation

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Recommendations

• Reduce appropriated expenditures and fulltime equivalents in the various General Fund departments and programs;

• Adopt a resolution increasing the amount to be transferred from the Light and Power Fund to the General Fund for fiscal year 2012 from 8% of gross revenues to 10%, and direct staff to prepare future General Fund projections utilizing a 9% transfer rate; and,

• Adjust estimated revenues in the General Fund to reflect revised estimates based on the revenue decreases experienced in FY11 and the increased revenues anticipated from the recommendations outlined in this report 26

FY12 Budget Update

Documents