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Budget Study Session June 20, 2005. June 20, 2005 Budget Study Session. June 27, 2005 Budget Study Session. New City Council Priorities. Overarching Guidelines Community Building Communication Creating Pedestrian-Friendly Public Places Quality of Life Aesthetics. Council Priorities
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Budget Study Session June 20, 2005
New City Council Priorities Overarching Guidelines • Community Building • Communication • Creating Pedestrian-Friendly Public Places • Quality of Life • Aesthetics Council Priorities High 1. Infrastructure 2. Downtown Medium 3. Youth and Education 4. Transportation/Traffic 5. Housing Low 6. Water Supply 7. Doing Business Efficiently/Effectively 8. Cultural Activities
Since 2002/03, we have: • Reduced budgeted expenditures by $10M • Eliminated 52 full time equivalent positions • Eliminated 23,777 casual hours = 11.4 full time equivalent positions
Process • Department Head (DH) team used a new process • All took a Citywide approach in reviewing the budget reductions vs. only thinking of individual departments • DHs voluntarily offered cuts from within their departments for good of Redwood City community • All proposed reductions were evaluated by the DH team • DH team reached a 100% consensus regarding what cuts should be recommended and what should be placed on options list
2005/06General Fund Revenues$67.393 million 2000/01 31.1% 2000/01 23.0%
2005/06General Fund Expenditures $68.976 million 2000/01 17% 2000/01 29%
2005/06General Fund Where $ Spent * 47% is employee costs
Major Budget Assumptions • Sales tax revenue: • 4% to 4.5% annual growth • The retail/cinema project opens in January 2006 • Century 12 site generating sales tax in FY 2006/07 • No further losses from electronically delivered software • Adjusted for Costco closure and reopening with a larger store • Property tax revenue increases 5% annually • “Excess ERAF” rebates continue at $1 million annually • No increases in supplies and services budgets in FY 2005/06 and FY 2006/07 with a 2% increase in FY 2007/08
Major Budget Assumptions (Continued) • Each bargaining unit will forego one or two years of a salary increase • No increases in staffing levels except those associated with opening the Redwood Shores Community Library in FY 2007/08 • Any increases in salary and benefits costs will be due to increases required under existing labor agreements (e.g. negotiated salary increases, retirement costs, and health benefits)
What has Changed Since February 2005? Primarily, FY 2005/06 estimated revenues are higher than expected in February 2005: Secured property taxes + $845,000 Sales taxes + 213,000 Hotel taxes + 178,000 Other revenues + 136,000 + 1,372,000
Fiscal Years in ($000’s) FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Budget (Est.)RecommendedEstimated*Estimated*Estimated* Total Revenues 67,823 67,393 71,223 74,109 77,449 Total Expenditures (67,022) (68,976) (72,857) (75,819) (78,544) Surplus/(Deficit) - $ 801 (1,583) (1,634)* (1,710)* (1,095)* % of expenditures 1.18% (2.35%) (2.29%) (2.31%) (1.41%) Projections * If Council takes no action
FY 2005/06 Recommended Budget and Future Projections
Council Budget Direction • 75% of deficit to come from reserves in FY 2005/06 • Council will provide direction on how to proceed with 2006/07 in June 2005 • Go to Revenue Committee for: • Discussion of increasing business license tax • CORO foundation report on development fees • Balance expenditures/revenues three years out (i.e. by end of FY 2007/08) • Do not want across-the-board cuts for all departments
Recommended Budget Charged with identifying reductions and/or new revenues (25% of February 2005 projected deficit) $830,000 Department Head work yielded 966,000 Budget reductions 633,000 Possible new revenues 333,000
Recommended Reductions for Fiscal Year 2005/06
City ManagerRecommended Cut - $23,594 • Elimination of .30 FTE management analyst causing a severe limitation to the City’s performance measurement program. • Add funding to professional services budget to contract some analytical services.
Comm. Development Svcs. Recommended Cut - $182,238 • Reductions in Engineering relating to traffic programs causing longer response times to neighborhood traffic complaints. • Transfer of several staff members’ time to non-general fund accounts to reflect appropriate project support. • Reduction in overtime.
FinanceRecommended Cut - $26,032 • Voice charges reduced by the number of telephone lines required and a new contract negotiated for long distance service. • Shift 4% of Finance Director to Parking Fund.
Human ResourcesRecommended Cut - $29,717 • Reduction in recruitment advertising will impact the City’s ability to conduct effective outreach efforts and meet our interest in providing equal employment opportunities. • Elimination of the City’s annual employee holiday dinner dance. • Elimination of human resources casual hours causing slower response times.
Library Recommended Cut - $62,677 • Reduction of librarian staff hours will mean longer time to process new material, fewer programs, and longer lines at the public services desks. It will be harder to implement strategies for operational efficiencies and managers will have to cover responsibilities of line staff leaving them with less time to supervise.
Parks, Rec. & Comm. Svcs. Recommended Cut - $98,825 • Reduction in plant materials and other landscaping operating expenses will decrease overall aesthetics in the City. • Reductions in building maintenance supplies will cause delays in completing some projects, as they will have to be added to the capital improvement project list. • Shift a portion of the City’s contribution to Shelter Network’s Redwood Family House from general fund (HSFA) to Community Development Block Grant (CDBG), which is non-general fund. • Complete closeout of Kids Klub After School Day Care Program.
Parks, Rec. & Comm. Svcs. (continued) Recommended Cut - $98,825 • Shift maintenance and replacement of certain small equipment from the vehicle maintenance shop to a departmental responsibility. • Cut carpet steam cleaning contract for all five child care facilities in City buildings by half from once per month to every other month. If this proves to be an unacceptable level of service, City staff will take on the task in-house.
Police Recommended Cut - $150,069 • Reduction in patrol overtime will be accomplished by assigning times when officers are responsible for reports reducing overtime for report writing after shift. • Reduction of police patrol holiday overtime will result in minimum staffing of patrol officers on holidays. • Reduction of booking fees is accomplished through legislation which limits the amount counties can charge for bookings.
Public Works Services Recommended Cut - $60,000 • Reduction in consultant budget which will reduce support for the department’s Worker’s Compensation Program and website maintenance. • 50% reduction in contract for tree inspections performed on privately-owned trees. Staff will now perform this function along with inspection of City own tress, causing delays in inspections of private and City-owned trees. • Transfer small percentage of two position’s time to non-general fund program to reflect appropriate project support. • Add $20,000 for maintenance of the new bicycle path adjacent to Highway 101.
There are no proposed reductions to: • City Attorney • City Clerk • City Council • Fire
New or Increased Revenues Requiring Council Action: Fire, Planning, Engineering Plan Review $130,000 Will cover costs of plan reviews done; presently only charge for cost of building inspection Storm Water Protection Inspections 45,000 City’s costs have increased per NPDES requirements. This increase will have developers/contractors pay for increased costs and not have the general fund subsidize new costs.
New or Increased Revenues Requiring Council Action (continued): Adjustments to current fee table 20,000 A series of very small fees we charge which have not been increased in many years: Minimum building & sign permit from $40 to $75 Minimum plumbing, mechanical, & electrical permit fee from $35 to $50 Adjust hourly charges from $48 to $100 based on actual costs Total $195,000
New or Increased Revenues Not Requiring Council Action: Increased revenues from Hoover field rentals $50,000 Increase Sandpiper child care rental fee 2,100 Grant from the Almanac Holiday Fund to support staff salaries at Fair Oaks Community Center 16,000 Yahoo! grant to finance teen homework center 20,000 Peninsula Community Foundation grant to support the traveling story time program for preschoolers 50,000 Total $138,100
Human ServicesFinancial Assistance (HSFA) • Housing and Human Concerns Committee (HHCC) has prioritized support for non-housing “basic human needs.” • Total recommended funding level is the same as FY 2004/05 - $198,200 (after two consecutive years of reductions in funding to HSFA). • HSFA funding provides vital supportive services for over 10,000 Redwood City households every year. • Services range from food programs to health services to crisis intervention to senior programs to programs for at-risk youth.
HSFA Funding Process • Housing and Human Concerns Committee establishes priorities for HSFA funding for each fiscal year and issues a request for proposal. • City staff conducts mandatory technical assistance workshops to explain the HSFA process and answer questions. • Applicant agencies submit applications for HHCC review. • Applicant agencies give oral presentations of their programs. • HHCC members rate applications and meet to determine funding recommendations. • HHCC presents HSFA funding recommendations to Council.
Options forFurther Reductions • Community Development Services - $60,000 • Reduction of professional services costs in Community Development Services resulting in the elimination of training or special studies, i.e. Dan Burden and CORO Fellow. • Finance - $14,075 • Reduction of overtime and 10% of an account clerk causing delays in internal customers’ requests, as mandated activities must take precedence. • Human Resources - $14,674 • Reduction in employee development will impact the City’s ability to develop and maintain employees’ knowledge, skill and abilities and as a result will impact service delivery.
Options forFurther Reductions • Library - $46,522 • Eliminate 0.5 FTE library school media specialist resulting in less partnership between the school district and the library and reduced usage of the library media centers in the schools. • Parks, Recreation & Comm. Services- $73,344 • Eliminate general fund support (0.5 FTE) for child care coordinator, leaving .50 FTE of the position funded by grants. Further reduce building maintenance supplies and services budget, resulting in longer waits for longer repairs or additional requests to the capital budget.
Options forFurther Reductions • Police - $40,023 • Additional reduction of police patrol holiday overtime causing skeleton crews on holidays • Reduction in investigations furniture and equipment budget resulting in less replacement of radios and other equipment • Public Works - $62,000 • Reduction in temporary labor for paving maintenance and repair projects causing a direct affect in the condition of the City’s street infrastructure.
