City Manager Budget Proposals For FY11 and FY12

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Jade Parks
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1 City Manager Budget Proposals For FY11 and FY12

2 City Manager Public Input Process City Council Budget Principles City Manager Budget Proposals City Council Budget Proposal Evaluation City Council Budget Adoption 12/7/2009 2

3 Town hall meetings Council Workshops Citizen satisfaction survey and benchmarking Public & employee suggestion programs DMTV Cable channel 7 coverage of meetings and shows that examine city programs The City Source newsletter Online budgets and information about DM City government Boards and Commissions 12/7/2009 3

4 1. Balanced Budget 2. Sustained Essential Services 3. No Tax Rate Increase 4. Expenditure Reductions 5. Two-year Balanced Budget 6. Conservative Financial Projections 7. Service Reductions Reported 8. Sustainable Actions 9. Strategic Plan to Address Structural Deficit 10. Maximize Public Assets 11. Maximize Operating Efficiencies 12. Public Input 13. Continuous Operating Review 14. Inter-agency Collaborations 15. Long-term Bonding Reductions 12/7/2009 4

5 Structural Deficit: Increasing costs for health care, wages, pensions, aging infrastructure, and increased service needs. Inadequate revenue mechanism to support services. Balancing budget with reductions for only one year will result in the need to make reductions in each and every following year. In Addition: Economic downturn impacting revenues. Competition for business and residents to locate and stay in Des Moines requires resources. 12/7/2009 5

6 Millions $195 $190 Current Projection Status Quo $ $180 $ $ $165 $160 $ $150 $145 ($5.4 mill) ($11.6 mill) ($17.2 mill) ($23.6 mill) $140 FY11 FY12 FY13 FY14 12/7/2009 6

Millions $185 $180 $175 Current Projection Balanced For One Year 174.7 182.9 $170 167.

7 Millions $185 $180 $175 Current Projection Balanced For One Year $ $165 $160 $ $150 ($6.0 mill) ($11.4 mill) ($17.7 mill) $145 FY11 FY12 FY13 FY14 12/7/2009 7

8 Millions $180 Current Projection Balanced For Two Years $175 $ $165 $ $155 ($5.3 mill) ($11.4 mill) $150 FY11 FY12 FY13 FY14 12/7/2009 8

9 FY08 Budget Process: $5,800,000 FY09 Budget Process: $4,200,000 FY10 Budget Process: $5,900,000 12/7/2009 9

10 Operations are continually reviewed for ways to reduce expenditures. Privatization: Animal Control, Workers Comp., Custodial, Mowing, Sidewalks Automation: Solid Waste, Recycling Purchasing: Energy efficient vehicles Fuel and natural gas through futures contracts Purchases to achieve lower prices in off season Coordination and Collaboration: Energy Efficiency Committee Field Staff Coordination (Parks and Public Works) Centralized IT 12/7/

11 1. Balance the Budget for two years 2. Address the structural deficit by focusing on: Intergovernmental Collaboration Organization and Location of City Departments Sale of Buildings and Property Preserving Essential Services Sufficient Revenue Sources 12/7/

12 DEPARTMENT TARGET City Clerk $67,000 City Manager $193,000 Community Development $469,000 Engineering $346,000 Finance $192,000 Fire $2,462,000 Human Resources $91,000 Human Rights $25,000 Information Technology $372,000 Legal $240,000 Library $535,000 Park and Recreation $1,028,000 Police $3,824,000 Public Works $1,143,000 12/7/2009 Total $10,987,000 12

13 Business Practice Changes $2,661,000 (15 FTE) Achieving the same results in a more cost effective manner Reorganization of City Clerk/Action Center (City Clerk and City Manager) Contract sidewalk repair & reconstruction services (Public Works) Change pet license notification mailing and materials (City Clerk) Reduce # of software licenses and negotiate lower cost (Information Technology) Contract for a portion of building maintenance electrical work (Park and Recreation) Change online transaction processor (City Clerk and Finance) Reduce succession planning and wellness program (Human Resources) Implement measures to further reduce utility payments in buildings (Parks) Pursue GDMP administration of Sister Cities (City Manager) Reinstatement of nine eliminated police officer positions via federal grant allocation (Police) Reduce newsletter publication costs 12/7/

14 Service Delivery Reductions $5,298,000 (40 FTE) Expense reductions that preserve essential services at a cost that is within our means Eliminate Homeland Security Training Coordinator and reduce equipment (Police) Reduce scope of services currently provided by private custodial and mowing contractors (Parks) Restructure emergency response (Fire)-deactivate truck 5 & engine 6, create medic 7 Reduce 5 positions in Police command staff (Police) Eliminate 17 other full-time positions in 12 departments all areas -- clerical/support, supervisory/management, professional, and field staff 12/7/

15 Service Delivery Reductions (Continued) Eliminate mosquito spraying (Community Development) many communities do not spray Reduce library hours (Library) Library Board action Eliminate closed captioning (City Clerk) no response from message on DMTV to call if served Allocate CDBG funding to community centers and NBSD (Parks/CD) Federal grant replacement of local funding for energy assistance payments (Community Development) Reduce wading pool hours future plan to replace 2 with splash pads (Parks) Private property owners responsible for graffiti removal (Parks) Reduce various service, commodity, & capital outlay (several departments) 12/7/

16 DEPARTMENT REDUCTIONS LAST YEAR REDUCTIONS THIS YEAR FIRE 3 16 PUB. WRKS POLICE 15 6 PARKS 34 4 ENGINEERING 3 2 FINANCE 1 1 CITY MGR. 1 2 INFO. TECH. 2 2 COMM. DEV. 1 2 LEGAL 2 1 LIBRARY 4 4 H. RIGHTS 0 1 GF/RUTF TOTAL OTHER FUNDS /7/

17 EMPLOYEE GROUP POSITION REDUCTION SPM 16 MEA 8 LIBRARY 2 CIPEC 14 FIRE 15 TOTAL 55 12/7/

18 DEPARTMENT TARGET RESULT City Clerk $67,000 $67,000 City Manager $193,000 $193,000 Community Development $469,000 $459,000 Engineering $346,000 $330,000 Finance $192,000 $87,000 Fire $2,462,000 $1,349,000 Human Resources $91,000 $90,000 Human Rights $25,000 $25,000 Information Technology $372,000 $406,000 Legal $240,000 $78,000 Library $535,000 $538,000 Park and Recreation $1,028,000 $893,000 Police $3,824,000 $1,601,000 Public Works $1,143,000 $1,145,000 CDBG (CD and P&R) 0 $700,000 Total $10,987,000 $7,961,000 12/7/

19 Target $11.6 million Proposed Actions $ 8.0 million Gap $3.6 million 12/7/

20 Since CIP funding was approved in March, 2005 the City Council has reduced planned general obligation debt financing by $38.9 million and, combined with bond refinancing opportunities, has lowered the debt service tax rate by eighty-two cents. The goal now is to reduce GO debt issuance by $2.5 million annually. Date FY07 FY08 FY09 FY10 FY11 3/15/05 29,640,000 45,140,000 26,830,000 29,640,000 24,310,000 10/26/09 26,720,000 18,000,000 24,060,000 22,720,000 25,170,000 Change (2,920,000) (27,140,000) (2,770,000) (6,920,000) 860,000 Date FY07 FY08 FY09 FY10 FY11 3/15/ /26/ Change (0.22) (0.41) (0.52) (0.79) (0.82) 12/7/

21 Bond Refunding Opportunities: Since 2003: 7 Refunding opportunities saving the city $13.1 million in net present value interest costs A December 17, 2009 refunding will provide a $0.9 million savings Aggressive Efforts for Grants: Since 2008: Applications for $186 million in federal and state flood mitigation and economic stimulus grants ($48 million awarded thus far) 12/7/

22 1. Address the structural deficit by focusing on: Intergovernmental Collaboration Organization and Location of City Departments Sale of Buildings and Property (Top Value, Botanical Center) Sufficient Revenue Sources Council Goal Statement: City services will be provided through stable, diverse revenue streams that reduce reliance on property taxes We continue to win performance awards and have a top satisfaction rating from citizens compared to other cities across the country. Involved citizens and dedicated staff will continue to work to keep results that earn the public trust and confidence in how we spend tax dollars. 12/7/

23 Comments and Questions 12/7/

City of Des Moines. City Manager Recommended Two-Year General Fund Operating Budget Plan FY 2013 and FY December 5, 2011

City of Des Moines. City Manager Recommended Two-Year General Fund Operating Budget Plan FY 2013 and FY December 5, 2011 City of Des Moines City Manager Recommended Two-Year General Fund Operating Budget Plan FY 2013 and FY 2014 December 5, 2011 Actions to Balance Past Budgets Focused on expense reductions- all options were