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Erika Brooks Juan Cabral Eddie Martinez Milton McKinnon Frank Wasko

Erika Brooks Juan Cabral Eddie Martinez Milton McKinnon Frank Wasko. PPD 541 Public Finance Spring 2011. Background.

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Erika Brooks Juan Cabral Eddie Martinez Milton McKinnon Frank Wasko

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  1. Erika BrooksJuan CabralEddie MartinezMilton McKinnonFrank Wasko PPD 541 Public Finance Spring 2011

  2. Background Incorporated in 1917 • 5 Square Miles • 40,000 Residents • 1 Mile from Beach • 5 Member City Council • Light Rail • Culver City Unified School District • 5 Elementary Schools • 1Middle School • 2 High Schools • West LA College • Antioch University • Pepperdine University

  3. Major Employers Median Household Income 5.5% of Families and 8.6% of the Population are below the Poverty Line.

  4. Population by Race Population by Age 38,816 People• 16,611 Households• 9,518 Families • Median age is 39 • For every 100 females there are 87.5 males

  5. Median Home Value Education Average Temperature: 70° • Warmest month is August • Coolest month is December •February is the wettest month

  6. City Government Total City Workers: 649 • Retirement System: PERS • 2.5% @ 55 Years – Misc. Employee • 3% @ 55 Years – Fire Department • 3% @ 50 Years – Police Department Charter City: 1947

  7. Revenue • Current Revenue Streams • Breakdown 14M • Local Taxes $49.8M • Charges for Services $55.6M • Fines & Forfeits $4M • License & Permits $2.6M • Intergovernmental $28M • Other $14M 28M 2.6M 49.8M 4M 55M

  8. Expenditures • Breakdown • Deficit – 8 Milliion • Strategic Plan to Reduce Expenditures 11.6M • Salaries & Benefits $88.6M • Ops & Maintenance $56.4M • Capital Outlay $11.6M • Debt Service $2M 55.4M 88.6M

  9. Fund Balances • Review the “General Fund Changes In Fund Balance Statement.” • Review whether the budget is balanced. • Review whether revenues exceed expenditures. • Determine how reserves will be impacted. • Determine the unrestricted balances. • Determine the total reserves.

  10. Challenges • CalPERS retirement system increases: Losses must be recouped • Safety employees • Miscellaneous employees • Making these cuts will increase the General Fund to an estimated figure of $3.9 million • 3.9 Million to be recouped in FY 2014-2015

  11. Challenges Cont. • Recognize the severity of the structural deficit • Recognize the other long term financial issues that must be addressed in the future • Propose a budget that will bring current operating cost in line with current resources

  12. Proposed Solutions • Implement a two year action plan to reduce expenditures • First year: Workforce reduction of 60 positions • Second year: Address remaining deficit through negotiations or further workforce reduction, or combination of both

  13. Proposed Solutions Miscellaneous: FY: 2010-11 (12.9%) • FY: 2011-12 (13.60%) • FY 2013-14 (15.84%) • FY 2013-14 (18.22%) • FY 2014-15 (18.49%) Safety: FY: 2010-11 (26.52%) • FY: 2011-12 (29.60%) • FY: 2012-13 (34.43%) • FY: 2013-14 (40.45%) • FY: 2014-15 (41.14%) Questions

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