City of Sunbury Early Intervention Program Revenue and

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Transcript City of Sunbury Early Intervention Program Revenue and

City of Sunbury Early Intervention Program Revenue and Expenditures

Purpose of EIP Program

     Improvement of Revenue Stream Reduction of Costs Operational Improvements Reduction/Transfer of Liability Improve Economic Development Opportunities

Early Intervention Goals

     Develop and Review City Financials from 2003 - 2008 Develop Outyear Financial Projections for 2009-2013 Review Departmental Operations Prepare Consolidated Report Enactment of Recommendations

Financial Projections Expenditures to Exceed Revenues in Each of Next Five Years 2008 2009 2010 2011 2012 2013 Revenues

$ 4,306,811 $ 4,258,449 $ 4,284,973 $ 4,332,082 $ 4,352,998 $ 4,407,105

Expenditures

$ 3,965,193 $ 4,471,298 $ 4,806,366 $ 4,607,292 $ 5,221,479 $ 5,578,726

Variance

$ 341,618 $ (212,850) $ (513,563) $ (609,314) $ (877,182) $ (1,158,155)

Financial Projections

  Trends Show Structural Deficits Relatively Strong Expenditure Controls – Wages – Health Care – Pension – Utilities – Insurances

Financial Projections

 Revenue Growth Hampered by Factors – Property Assessments – Population Decline – Falling Tax Collection Rates – Outdated Fee Schedule – State Laws

General Operation Findings

     Significant Need to Improve Facilities Change Form of Governance Restructure Budget Process Improve Employee Policies, Training and Supervision Increase Intergovernmental Cooperation

Revenue Enhancements

      Reassessment of Properties Replace Occupational Assessment Tax with Earned Income Tax Enactment of Per Capita Tax Better Public/Private Partnerships Restructure Fee Schedule Improve Revenue Analysis

Expenditure Controls

       Changes to Police Pension Fund Changes to Health Insurance Plans Increase Use of Technology Promote Risk Management Activities Support for Fire Companies Program-based Accounting/Budgeting Matching Funds for Grants

Known Unknowns

     Effect of Recession on Economy Effect of Stimulus on City Finances and Regional Economy Increased Energy Costs in 2010 Increased Police Pension Costs in 2010 Current Employee and Post Retirement Health Benefit Costs

Known Unknowns

    Reactions by Other Governmental Entities to Economic Woes New State and Federal Mandates Impact of County-wide EIT Collection Lawsuits, Arbitration Awards, Disasters, Capital Programs

City Plans Are Important

      Visioning Plan Comprehensive Plan Recreation Plan Capital improvement Plan Succession Management Plan Outyear Financial Plan

What’s Next

    March 23 rd April 13 th – Management Audit Presentation April 27 Audit th – Questions on Financials – Questions on Management Future – Enactment of EIP Recommendations and Phase II Grant Proposal

Contact Information

Robert Sabatini Director of Management Services Keystone Municipal Services, Inc.

[email protected]

267-718-3467