Transcript City of Berkeley Budget Update February 17, 2009 Unknown State & Federal Impacts  State budget unknown -$17B FY 2009 -$25B FY 2010 -$42B Deficit (23% of budget!)  Federal.

City of Berkeley
Budget Update
February 17, 2009
Unknown State & Federal Impacts

State budget unknown
-$17B FY 2009
-$25B FY 2010
-$42B Deficit
(23% of budget!)

Federal stimulus package still in progress

Unknown how Berkeley will be impacted
2
2-YR Budget…3-YR Problem
PERS rate spike in FY 2012
Revised 3-Year Forecast - Not Balanced
(in millions)
FY 2010
Projected Revenue
$145.90
Projected Expenses
$149.20
Balance
($3.30)
With PERS Rate Increase
Revised Balance
($3.30)




FY 2011
FY 2012
$148.90
$151.70
$153.20
$158.30
($4.30)
($6.60)
$3.00
($4.30)
($9.60)
$600K loss of parking meter revenue
Need GF reductions over 3 years of 6%
Year 3 reflects PERS rate spike
Assumes CIP funding reductions
3
FY 2009 General Fund Budget
$145.8 Million
General
Government
CIP
19%
5%
Police
34%
CBOs
3%
Health &
Recreation
Housing Fixed Costs
10%
3%
9%

Fire
17%
Less public safety & fixed costs = $60M
4
GF Balancing Framework
 3-year
•
•
Deficit =
$9.6M
Reduce expenses = $6.00M
New revenues* =
$3.60M
$9.6M
*Raise parking fines $10 over two years
5
Reducing GF Expenses
Administrative reductions
 Reorganizations
 Efficiencies

•
Return on technology
investments
$2.5M
Civilianization
 Shifts in funding source


Service reductions
$3.5M
6
Reducing GF capital funding
(in millions)
City Facilities
FY 2008
1.3
FY 2009
3.1
FY 2010
1.3
FY 2011
0.7
FY 2012
0.7
Streets
4.0
2.8
3.0
3.0
3.0
Clean Storm Water
1.0
0.0
0.0
0.0
0.0
Transportation
1.1
0.5
0.3
0.3
0.3
7
Other Revenue Funds Face Deficits

Public and Mental Health Funds
•

Streetlight Assessment Fund
•

Rate increase in March 2009: 20-30%
Clean Storm Fund
•

Possible General Fund subsidy increase
Refuse Fund
•

Expenditure reductions
Ballot in FY 2010
Permit Service Center Fund
•
Expenditure reductions
8
Cutting costs now…
Hiring Freeze
 Cuts to Health & Mental Health
 Defer capital projects (pending State $)
 Limit travel & non-essential expenses
 No new programs
 Limit OT

•

(eliminate for non-emergency/non-essential)
Preparing for Federal Stimulus
9
Principles of developing the budget




5-year budget model (3-year focus)
Long-term solutions
Engage/inform Council,employees, community
Harvest creative ideas
•



City staff, labor unions, citizens
Streamline overhead
Address unfunded liabilities
Special revenue funds must balance on own
Need 5% more (cuts/revenue) to deal with
uncertainties
10
Organizing to improve services
Health & Human Services – Housing Dept
 HHS to focus on public & mental health
 Create Housing & Community Services Department
• Adding Aging Services & Youth Employment
• Department focus now…
 Community Services
 Homeless Services
 Housing
11
Goals & Values

Maintain City’s long-term fiscal health

Provide quality services to residents

Recognize the exceptional work our
employees do
12
Program Focused Discussions
 Environment…
•
Watershed Management Plan
•
Climate Action Plan
•
Zero Waste
13