have we Since 2009, the City has addressed a collective $1 IIi techniques and Long-Term inancial Planni ns. " iscal iscal irst Aid: 0 Evaluated overtime use o Improved billing and collections procedures Explored fees for services 0 Refinanced Debt for Lower Interest Rates o Sought state and federal assistance 0 Offered early retirement program o Deferred and/or cancel capital projects o Used Reserve und to Soften the Landing Instituted hiring freezes Reduced hours~ worked Long-Term inancial Planning : Reduced workforce by 4,000 positions 0 Replenished the Reserve und and Placed Charter Amendment P on ballot requiring a 2.75 /o Emergency Reserve Account within the Reserve und (approved by voters) o Addressing major drivers of future deficits Placed Charter Amendment to create a new pension tier for new sworn employees (approved by voters) Developing new pension tier for new civilian employees Negotiated increased co-pays and contribution amounts from employees. for health care Pursuing alternative service delivery models
have we done? $8 $7 Adopted City Budget Y 1999... 00 To Y 2010-11 $7.11 $6.67 $6.82 $6.88 $6.75 $6 $5 $4.85 $4.83 $5.16 $5.39 $4,-... (/) c $3.Q :.0... $2 $1 $0 ~ " ~ r:, R? t;::/'0 "? 8:'0 ~q) ~'5 ~'0 ~'0 ~",;.\,.rp ~f); ~f); ~ ~ ~ ~.4. ~ 5-J fo ~ ~ r:f\j 'V{\::j [0'5 9::{(0 ~ ~ ~'0 ~\J ~\::S ~cs ~'0 f); ~f);.. 4.rp ~f);. ~f); ~ ~ ~ ~ ~ 11 General und Special unds -4. \:)~,'0 "" gj R) \;:{ ~\J ~cs ~"' f); ~f); - - 4. f); ~ ~ ~
e? Citywide Authorized Staffing Y 2000-01 to Y 201 0-11 40,000,------------------------------------------, 35,000 I ~, w 30,000 25,000 U)!:: 0 E 20,000 U) 0 0... 15,000 10,000 5,000 Y2000-01 Y2001-02 Y2002-03 Y2003-04 Y2004-05 Y2005-06 Y2006-07 Y2007-08 Y2008-09 Y2009-10 Y2010-11 I PolicE. Al1 ot!'lerq
0 City has taken the necessary steps to fill the Y201 0-11 expected budget gap Revenue revision: $139.6 million Power revenue transfer: $36.5 million $492 Million General und Budget Reductions Parking revenue transfer: $10 million Reserve fund transfer: $3.6 million Revised Revenue Projection 28% Special Parking Revenue und Revenue from parking facilities: $53.2 million Miscellaneous Reductions and Additions 10% Reserve und Transfer 1% Department reductions: $99.1 million Employee furloughs: $63.3 million Capital Improvement Deferral 8% Departmental Reductions 20% Capital improvement deferral: $37 million Miscellaneous reductions and additions: $50.1 million Employee urloughs 13% One-time Revenue from Parking acilities 11% Increase in Power Revenue Transfer 7% El
are wen As reported in the ird inancial Status Report (SR) for 1 11, current year deficit is down to $46.8 million. The Third SR proposes sol take own to $4.1 million. UB, Other, $3.9 Gas Tax Related Cost, $7.0 Recreation and Parks, $2.8 Suspend Police Hiring, $0.7 UB, LEX, $13.4 Remaining Deficit, $4.1 Capital inance und, $8.0 SPR unds, $4.0
Actual Reserve und Balance as of July 1 and Current Reserve und Balance per Third SR $250.0 6.00%,- ell......... g '--" $200.0 I $150.0 $100.0 I $50.0 ' ""' \. I Ill \ / WiiiiiA-..:til t'ji 5.00% I 4.00% 3.00% 2.00% I 1.00% $- ~ <;::) " ~ ~ I>< ~ ~ ~ ~ ~ "<::) "" ~ R>os 2>\:5 ~p r-..:<:::l (\ ~ ':':f\:5 l:x\:5 ~? ro<:::l ~ r;:> "-'\:5 rv \:5 " ~ ~ ~ <;::) ~ <;::) ~ ~ ~ <;::) ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1$ ««««««««««««««"" [IIIII Reserve und Balance Available, July 1-+-- July 1 Balance as% of the General und [ 0.00%
are we Ratings Over Last 5 Years - General Obligation Bonds by Year Moody's S&P itch 1 I June 2010 Aa2 AA- AA- ' June 2009 Aa2 AA AA- ' June 2008 Aa2 AA AA June 2007 Aa2 AA AA June 2006 Aa2 AA AA Ratings of 10 Largest U.S. Cities Rating City itch Moody's S&P Rank 1 San Jose, CA AAA Aaa AAA 2 San Antonio, TX AAA Aa1 AAA 3 Phoenix, AZ NA Aa1 AAA 4 Dallas, TX NA Aa1 AA+ 5 New York, NY AA Aa2 AA 5 Houston, TX AA Aa2 AA 7 Los Angeles, CA AA- Aa2 AA- 8 Chicago, II AA- Aa3 A+ 9 San Diego, CA AA- Aa3 A 10 Philadelphia, PA A- A2 BBB E
we be our Year Budget Outlook Y 2010-12 to Y 2014-15 $5,600--r-------------------------~ $5,400 - -$5,-301 - $5,200 ~- -- - - tl) $5,000 ~--- ::2:!: $4,800 $4,600 $4,400 - $4,618 ----- $4,491 $4,375 $4,373 $4,200-1-------,------,.-------,--------,--------{ 2010-11 2011-12 2012-13 2013-14 2014-15 [- -11- Expenditures -'lilt- Revenue \
? " Bargaining Unit base Wage Movement Y2006-07 to Y2012-13 8%~----------------------------------------------------~ 701o '-' IV IU 6% V l VIU 5%l t-------~~---------- (]) g> ]l 4% I -s;::::; IL: 3. 75% I I u $... (]) D.. 3% I ~ =-..- v 71 2o/o+---------------------------------------------~~~----------~~------------------------------------------------~ 1%1 ~~--~--~---------------------- 0%1 ~------~------~--~--~--~--~--~~~--::~~ Y2006-07 Y2007-08 Y2008-09 Y2009-10 Y2010-11 Y2011-12 Y2012-13 1-a- Coalition-+- EAJ:tr-lr-o Swor~
be? "' Projected Changes for Y2011-12 Net- Other Additions and Deletions Capital Imp. and New acilities 14% Employee Comp. Adjustments 27% Health and Denta Benefits 7% Workers' Compensation Benefits 3% Civilian Pensions 14% ire and Police/ Pensions 29% L
we be we do? "' $250 $200 Major Drivers of Expenditure Growth Health and Dental Benefits Workers' Compensation Benefits ire and Police Pensions 11 Civilian Pensions (7) $150 s:: 0 - -. $100 $50 $- - Y2010-11 Y2011-12 Y2012-13 Y2013-14 Y2014-15
Where we be do?,. -tn t: 0 $1,400 $1,200 $1,000 $800 -Ē $600 $400 Estimated uture City Contibutions ire and Po lice Systems $1,249 1111 LACERS $1,014 $872 $1 '161 $200 $- Y2011-12 Y2012-13 Y2013.:.14 Y2014-15 Y2015-16 El
ere we we do? Civilian Health Care Expenditures vs. Adopted Budget $250 120 /o - Expenditures $200 (i) $150 s::::: 0 - s $100 $50 -Adopted Budget -Change 100% 80% 60% 40% 20% Cl,) C') s::::: cts J:: u ~ Cl,) > +::: cts - ::l E ::l u $- QOfo ~ ~ ~ b ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ R)()_ -- - - - R)() R)() - - R)Cj R)<.:S - -- - R)<::) - -.. R)() - R)(j - R)c:s ---- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
get out Over the next 18-24 the City's efforts will focus more on Long-Term inancial Planning guided by the following principles: L Responsible Management and iscal Practices o Strong Reserve und o Reduce or Eliminate General und Subsidy 0 Maximize lexible unding IlL Alternative Service Delivery Models o Partner with non-profits and foundations o Maximize City Assets o Strengthen Core unctions 0 Strengthen Central Admin unctions & Contracting Process 0 Pursue New Revenue II. ocus on Core Services 0 Revaluate Discretionary Programs 0 Consolidate Services -- - 0 Evaluation and Redesign of Core Services IV. Sustainable Workforce D Reduce the Size of the Workforce D Reduce healthcare and Workers' Camp Cost -o- Control Pensions and Retiree Health D Align Compensation D Eliminate urloughs through Concessions
have furloughs been necessary? $492 Million General und Budget Reductions Miscellaneous Reductions and Additions 10% Revised Revenue Projection 28% Special Parking Revenue und Transfer 2% Reserve und Transfer 1% Capital Improvement Deferral 8% Departmental Reductions 20% Employee urloughs 13% One-time Revenue from Parking acilities 11% Increase in Power Revenue Transfer 7%