Transcript Document

FY 2008 – 2009
Mid-Year Budget Update
Joint Finance Committee
& City Council Meeting
Presented by
Michael J. Beck, City Manager
November 11, 2008
Total City Budget $636.8 M
Excluding Operating Companies
$34.60
$19.20
$24.40
$22.70
$102.40
$31.10
$236.20
$14.00
$12.50
$46.00
$11.60
$30.20
$51.90
Admin Departments
Finance
Public Safety
Housing
HS&R
Library
Plan & Dev
Health
Public Works
Transportation
Water & Power
Debt Service
Other
Economic Reality
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State Budget Impacts
Banking Industry Collapse
New Housing Starts Halted
Increased Unemployment
Increasing Office Vacancies
Declining Retail Sales
Slowing Assessed Valuation Growth
Business/Vacation Travel Reductions
Revenue Growth
45.0
40.0
Dollars (millions)
35.0
30.0
25.0
20.0
15.0
10.0
5.0
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Property Tax
Retail Sales Tax
Utility User Tax
Trans Occup Tax
Construction Tax
Vehicle In Lieu Tax
General Fund Revenues
(Rounded Millions $)
Revised
FY 2008
FY 2009 Projection
Actual Budgeted
s
Property Taxes
35.3
35.6
36.7
Sales Tax
35.4
35.1
33.9
Utility User Tax
29.6
30.2
29.9
Other Taxes
27.3
29.0
26.5
Charges for Services
21.7
22.5
21.9
Investment Earnings*
21.6
21.1
22.7
Intergovernmental Revenues
13.3
12.2
12.8
Enterprise Contributions
18.3
15.0
15.1
Other
13.4
14.7
14.9
3%
-3%
-1%
-9%
-3%
8%
5%
1%
1%
-Licenses & Permits
-Fines & Forfeitures
-Rental Income
-Miscellaneous
TOTAL:
*Funds primarily reserved for transfer to FPRS.
$215.9
$215.4
$214.4
-0.5%
Expense Growth
260.0
Dollars (millions)
210.0
160.0
110.0
60.0
10.0
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Personnel
Debt Service
Total Expenses
Growth Comparison
FY2004 through FY2012 projected
90%
80%
70%
60%
50%
40%
30%
20%
10%
FY2004
FY2005
FY2006
FY2007
Personnel
FY2008
FY2009
Revenue
FY2010
Debt
FY2011
FY2012
Revenue and Expense Trends
(Rounded Millions $) Excludes contributions to reserves
260.0
250.0
240.0
230.0
220.0
210.0
200.0
190.0
Revenues
180.0
170.0
Expenses
160.0
150.0
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Actual Actual Actual Actual Actual Projected
Projected
Projected
Projected
FY09 General Fund Appropriations
230.8 M Operating Budget
Other $17.27
Admin Departments $17.5
Debt Service $23.7
Library Special Tax $9.9
Finance $10.1
PCOC Share of TOT $5.8
HS&R $9.8
Plan & Dev $9.6
Transportation $5.5
Public Works $22.0
Public Safety $99.7
Remaining Budget $91.8 M (40%)
Key Projects and Initiatives
• Resolving structural deficit is key to
funding Key Projects and Initiatives…
– Ice Rink
– Urgent Care
– Park/Community Center Improvements
– Open Space
– Transportation Improvements
– Public Facility Enhancements
Budget Reduction Considerations
Target 95% expenditures
• Hold vacant positions and evaluate personnel
requirements
• Improve internal processes
• Reorganize for efficiency
• Lock in natural gas purchases to take advantage of
lower prices
• Delay investments in large replacement purchases
• Re-evaluate frequency of services
• Work with vendors to negotiate reduced rates
• Identify and consolidate services across the
organization
• Voluntary Furloughs
Summary
• Historic Budget Estimates:
– Revenues generally higher at year end
– Expenses generally lower at year end
• Current Structural Deficit:
– Revenues are decreasing
– Expenditures are increasing
– Resulting in estimated gap (deficit) of $10 million
• Solutions:
– Status Quo – expect history to repeat or spend reserves; or
– Correct imbalance – reduce expenditures through
efficiencies and reorganizations & use fund balance for key
priorities
– Increase General Fund reserves to 15%
• Managing now will avoid fiscal crisis in future.
Where Do We Go From Here
•Understand that the economic climate has changed
and the City needs to adapt responsibly
•Track the State Budget and identify impacts to
Pasadena
•Work with our local legislators regarding the City’s
needs
•Begin the Fiscal Year 2010 Budget process
•Engage City Council on opportunities to address both
the current and proposed budgets