Memorandum

DATE
August 25, 2014 CITY OF DALLAS
TO
The Honorable Mayor and Members of the City Council
SUBJECT
CM Griggs $3.84m Budget Amendment
Last Wednesday, August CM Griggs distributed the following amendment:
I propose a very select and targeted reduction in the proposed City Managers
back office budget, including administration and staff support, for a savings of
$3.84m with a reallocation of the funds..,
CM Griggs proposed use of funds is $3m additional funding to Library and
$0.84m for Animal Services.
The proposed amendment identifies 24 services primarily from E-Gov but also includes
one from Public Safety and two from Economic Vibrancy. CM Griggs proposal is to
fund the 24 services at 85% of the total (general fund and additional resources) amount
that the City Manager recommended for each of the identified services. By funding
these services 15% less than the recommended amount, $3.8m would be reduced.
To cut 15%, or $3.8m, from the 24 services requires more than just reducing the budget
back to the current year budget level. The FY 2014-15 recommended general fund
budget for these services is $1.9m more than the current FY 2013-14 general fund
budget. Therefore, to accomplish the $3.8m reduction proposed by CM Griggs, it would
be necessary to eliminate the $1 .9m of increased costs, plus, eliminate an additional
$1 .9m of the funding and service levels provided in the current year.
The $1 .9m of cost increases from FY 2013-14 to FY 2014-15 recommended budget can
be categorized as (1) on-going obligations or cost increases that are necessary to
provide the same level of service from one year to the next and (2) costs for operational
needs or the need to improve upon services.
On-going obligations include:
Civilian merits $61 4K
Employee/retiree health benefits $111 K
Full-year funding for positions and salaries previously approved $278K
Grant costs transferred to general fund $1 38K
Sub-Total $1.lm
Dallas-Together, we do it better!
Operational and imrrovement needs include:
Civil Service costs on behalf of Police Department
Employee training
DART pass subsidy
New or expanded services
*
$254K
$400K
$60K
$464K
Sub-Total $1 .2m
*
Note: Five new positions for customer service, open records, ethics and
diversity, internal control task force, and payroll/accounts payable.
Total cost increases:
These increases total $2.3m which were offset with revenue enhancements,
efficiencies, and/or other savings.
Beyond eliminating the budget increases ($1 .9m), it would also be necessary to reduce
current year services and reduce current year funding by an additional $1 .9m. Since the
delivery of the services identified is primarily accomplished through city employees, it will
be necessary to issue reduction-in-force (RIF) notices to 27 existing City employees and
discontinue the hiring process for 15 currently vacant positions.
It should be added that the cuts in seven of the 24 services are calculated from the total
budget including general fund and additional resources. Reductions to the additional
resources such as grant, TIF, Public-Private, New Market Tax Credits, and other funds
cannot be reallocated for use at the Library or Animal Services. The additional
resources must be used for eligible purposes only. Reductions to these services would
be required to be taken from the general fund only.
Attached is a spreadsheet that lists each of the 24 services and provides an impact
statement for each. Let me know if you need additional information for these 24
services or any other budget issue.
k..
yManager
Attachment
C: Warren M.S. Ernst, City Attorney
Craig D. Kinton, City Auditor
Rosa A. Rios, City Secretary
Daniel F. Solis, Administrative Judge
Ryan S. Evans, First Assistant City Manager
Jill A. Jordan, P.E., Assistant City Manager
Forest E. Turner, Assistant City Manager
Joey Zapata, Assistant City Manager
Charles M. Cato, Interim Assistant City Manager
Theresa ODonnell, Interim Assistant City Manager
Jeanne Chipperfield, Chief Financial Officer
Sana Syed, Public Information Officer
Elsa Cantu, Assistant to the City Manager
DaIIasTogether, we do it better!
FY 2014-15 General Fund: Impact statements related to CM Griggs' $3.8m proposed reduction
Dollars FTE Dollars FTE Dollars FTE
1.3 Civil Adjudication Court Judiciary 404,278 4.0 359,809 4.0 442,543 4.0 (66,381) 2.0 -
Eliminate two vacant associate hearing officers. The hearing officers perform a vital function
to the Civil Court as they are responsible for presiding over the dockets in the absence of the
judge. Without the full restoration of this service the potential of a reduction in the number
of code compliance violation offenses processed annually; and possibly reduce the collection
of funds for the Dallas Tomorrow Fund, a charitable fund for people who have low income to
repair substandard property. Ultimately, case by case, this court has served to improve the
quality of life with a cleaner, safer, and more attractive city. From its inception, the civil
process has achieved goals of 1)promoting and verifying code compliance, 2) providing
speedy, fair, and impartial hearings with respect for the rule of law, 3) increasing
communication and public awareness of code standards, and 4)increasing revenues for the
city.
2.4 Business Development
Office of Economic
Development 199,321 10.0 211,249 8.4 238,130 11.0 (175,338) 1.0 TBD
Eliminate 1 position. Projected impact is that it would jeopardize 3 new
business/development projects, 500 jobs created/retained, and $30m in new development.
Eliminate funding for North Texas Commission participation.
2.35
Regulation and Enforcement
of For-Hire Transportation
Code Compliance
Services 881,614 12 929,258 12 815,855 13 (131,489) 3.0 2
Revenue is set to recover the cost of this service. Reduction of expense would require a
revenue adjustment to avoid over recovery. Eliminate 3 Positions, (2 RIFs). Two Inspector II
currently responsible for field inspection and an Office Assistant II will be eliminated. This
would critically impair the departments ability to conduct random inspection of taxis and
other vehicle for hire, conduct driver training, respond to customer complaints and maintain
the data base of vehicle records, insurance records and driver records. So it is unclear that
any real help to other general fund departments could be accomplished.
5.50
Purchasing/Contract
Management
Business Develop. &
Procurement 2,008,470 23.2 2,007,520 22.6 2,194,305 24.0 (329,146) 5.0 5
Eliminate 5 positions and RIF 5 current employees. Eliminating 2 buyers will result in
decentralizing of small dollar (<$50k) purchases. Buyers process approx. 4,600 requisitions
resulting in $14.4M in annual expenditures. Eliminating (3) Buyer III's will result in increased
delays in establishing and renewing contracts (approx. 135 or 21.6% of all contracts)which
will negatively impact services provided by City departments. Costs to provide the goods and
needed services will increase due to the additional small (spot) purchases rather than
aggregated contracts.
5.2 Accounts Payable
City Controller's
Office 1,003,612 18.3 1,009,903 18.3 1,204,453 18.8 (180,668) 4.0 2
Eliminate 2 vacant positions and RIF 2 current employees would result in delayed payments
to vendors' and conflict with State's Prompt Payment Act.
5.33 Financial Reporting
City Controller's
Office 2,197,345 24.9 2,094,278 20.9 1,976,332 25.1 (296,450) 4.0 -
Increase the risk of material errors in the financial statements and delay issuance of the
Comprehensive Annual Financial Report (CAFR). Delays in the CAFR and financial assurance
letter will impact City's ability to issue bonds in the bond market which could result in higher
interest rates and could also result in the TCEQ not issuing permits or modifications to
existing permits. Eliminate 4 vacant positions that are difficult to fill due to their technical
nature.
5.48 Payroll
City Controller's
Office 681,092 9.2 653,992 7.8 846,330 9.5 (126,950) 2.0 -
Risks ability to process payroll timely and accurately. Payments such as child support, IRS
levies and IRS taxes may not be paid within statutory requirements. Eliminate 2 positions
currently vacant due to recent retirements.
Impact Statement
CM Grigg's
Proposed Cuts
FY 2015 GF Proposed
Service
Number Department Name RIF Notices Service Name
FY 2014 GF Estimate
Positions
Eliminated
FY 2014 GF Budget
Dollars FTE Dollars FTE Dollars FTE Impact Statement
CM Grigg's
Proposed Cuts
FY 2015 GF Proposed
Service
Number Department Name RIF Notices Service Name
FY 2014 GF Estimate
Positions
Eliminated
FY 2014 GF Budget
5.14 City Administration
City Manager's
Office 1,595,962 14.0 1,583,398 13.2 1,829,414 14.0 (362,047) 6.0 6
RIF 6 current employees. Limit staffing to provide open record responses, respond to citizen
issues, and executive scheduling to 2. Reduction of 42% of CMO staff.
5.23 Customer Service
City Secretary's
Office 140,004 2.0 137,324 2.0 206,601 3.0 (30,990) 1.0 TBD
Convert 2 existing Customer Service Representative (CSR) positions from full-time to part-
time. Increase risk of errors in the areas of posting of meeting notices, processing incoming
documents (contracts, agreements, Administrative Actions, etc.). The reduction will require
reassignment of speaker registration and processing of Administrative Actions and
Administrative Change Orders to other city departments. The reduction will also require
reduction in office hours (from an 8 to 7 hour work day) to allow other staff to assist with
those CSR duties.
5.4
Analysis/Development and
Validation Civil Service 624,948 5.5 565,282 4.4 838,209 5.5 (125,731)
Eliminate proposed Police Department job analysis. Risk non-compliance with Federal
Guidelines on Employee Selection Procedures
5.6
Applicant Processing -
Uniform Civil Service 428,846 6.0 417,544 5.8 534,378 7.0 (80,157) 1.0 1
Police and Fire recruitment and promotions will be negatively impacted. RIF 1 existing
employee.
5.38
Housing Mgmt. & Contract
Support
Housing &
Community 999,421 6.4 1,121,936 6.4 729,487 6.4 (341,527) 3.0 3
RIF 3 positions. 1 Assistant Director, 2 Compliance Staff (1 Manager III, 1 Coordinator II).
Eliminate oversight in Housing Community Services development and Community Services,
Council agenda preparation. Eliminate timely monitoring and coordination of audit
responses to the various grantors. Eliminates a source of matching funds for various grants.
5.39 HRIS and HR Payroll Services Human Resources 1,311,817 17.4 1,376,904 16.4 1,489,625 18.0 (223,444)
Eliminate the DART pass subsidy ($60k). Eliminate $160,000 (leaving $40,000) from the
Tuition Reimbursement program.
5.40 Human Resource Consulting Human Resources 2,165,747 19.6 2,148,739 19.6 2,708,307 19.0 (406,246)
Eliminate proposed enhancement to restore supervisory and employee training program.
Risk new supervisors not being properly trained and also eliminates trainers for Ethics
program.
5.15 City Agenda Process
Management
Services 200,960 3.0 145,431 2.3 196,380 3.0 (29,457) 0.5 -
Increase risk of agenda errors and inability to implement training for software upgrade.
Convert 1 employee from full-time to part-time.
5.42 Intergovernmental Services
Management
Services 335,395 8.0 335,395 7.0 332,175 9.0 (121,305) 2.0 1
Much of the IGS budget is reimbursed through grants and enterprise departments for
legislative services, which amounts to $476,522 in additional resources. This proposed cut
would require eliminating two FTEs (resulting in one RIF).
5.49 Public Information Office
Management
Services 563,975 8.0 565,425 8.0 598,704 9.0 (129,556) 1.0 -
Eliminate proposed enhancement of 1 additional (Open Records coordinator). Impacts ability
to respond to growing demand in 10 days.
5.29 EMS Compliance Program Non-Departmental 310,985 2.0 297,024 1.5 311,851 2.0 (46,778)
The only increases to this service are due to civilian merits, benefits, and CIS costs. Any cuts
to this service would be to Professional Services.
5.31 Ethics and Diversity Non-Departmental 111,664 1.0 89,727 0.5 194,548 2.0 (29,182) 1.0 -
Eliminate proposed enhancement of 1 additional staff. Program will be limited to efforts of 1
remaining employee rather than 2 for purpose of developing and implementing a city-wide
program.
5.43 Internal Control Task Force Non-Departmental 296,281 3.0 296,069 2.5 416,744 4.0 (62,512) 1.0 -
Eliminate proposed enhancement of 1 additional staff. Program will continue with 3 current
employees. Reduce Revenue by $200,000. Would not benefit another City department.
5.19
Budget Development and
Monitoring
Office of Financial
Services 1,238,478 12.0 1,116,787 10.7 1,215,434 12.0 (182,315) 3.0 2
Eliminate 3 positions and RIF 2 current employees. Impact ability to implement "sunset"
review of department budgets and decrease financial oversight of departments budgets.
Dollars FTE Dollars FTE Dollars FTE Impact Statement
CM Grigg's
Proposed Cuts
FY 2015 GF Proposed
Service
Number Department Name RIF Notices Service Name
FY 2014 GF Estimate
Positions
Eliminated
FY 2014 GF Budget
5.27 Efficiency Team
Office of Financial
Services 211,893 2.4 190,404 1.7 307,220 3.0 (46,083) 1.0 1
Eliminate 1 of 3 positions and RIF 1 current employee. Reduce efforts to identify efficiencies
during FY15, for FY16 by $800,000.
5.37 Grant Administration
Office of Financial
Services 1,091,875 12.5 1,068,808 11.1 1,303,508 14.5 (292,992) 4.0 4
Reduce compliance monitoring and risk more HUD findings and more ineligible costs. Risk
need to repay more funds to HUD for ineligible expenses occurring. Eliminate 4 positions
and RIF 4 current employees.
5.53 Strategic Customer Services
Office of Financial
Services 607,125 6.0 548,488 4.5 539,041 5.5 (80,856) 1.0 -
Eliminate 1 vacant position which is in the process of being filled. Reduce efforts to
benchmark and identify best practices in efforts to improve organization.
19,611,108 230.4 19,270,694 211.6 21,469,574 242.3 (3,897,600) 46.5 27 FY 2014-15 General Fund Total