Alternative Proposal to Strategic

Approach of Budget Balancing

for Remainder of FY 2010 & FY
2011
 Summary of FY 2010 Strategic Approach
Budget Balancing (millions)
FY 2010 Revenue Shortfall $32.0
1. Current Projected Expenditure Savings (including vacancies) (2.0)
No Fund Balance Transfer (3.7)
No Supplemental Risk Management Fund Transfer (1.6)
Debt Restructuring (1.5)
Mass Transit Efficiencies (1.0)
Fee or Tax Increases (2.3)
Subtotal (12.1)
2. Departmental Program/Expenditure Reductions (8.4)
3. Employee Furloughs and Public Safety Pension Adjustment (4.1)
Low Income Subsidy Absorbed by utilities (0.5)
Subtotal (4.6)
Deficit Remaining $ 6.9
Remaining Strategic Approach to Balancing FY2010 Budget

City Manager Recommendations Total = $5.9 million

•Outside Agencies Reduction $3.0

•ALS Transport Revenue 0.9
•Professional Services Expenditures Reduction 0.2
•Premium Pay Reduction (50% Proposal) 1.3*
•Overtime Policy Change Savings 0.5
Remaining Strategic Approach to Balancing FY2010 Budget

City Manager Recommendations Total = $ *5.9 million*/

Labor Council’s Recommendations $ 7.85 million

•Outside Agencies Reduction $ *3.0*/ 3.5

•ALS Transport Revenue *0.9*/ 1.0
•Professional Services Expenditures Reduction *0.2*/ 1.25
•Premium Pay Reduction (50% Proposal) *1.3*/ 0.0 (council direction)
•Overtime Policy Change Savings *0.5*/ 0.0 (council direction)
- Implementing line-item cuts as proposed by council on 01/05/10 2.1
 Potential Remaining Deficit

As of 01/5/10= $ 6.9 million

City Manager Recommendations Total = $ *5.9 million*/
Labor Council’s Recommendations $ 7.85 million

Remaining Deficit $ *-1.0 million*/ +0.95 million

 REVISED Strategic Approach to Balancing FY 2010 Budget

All cost savings from cuts/reductions and revenues

implemented in Box 1 will be continued in FY 2011
to address the projected $29 million deficit.

Outside Agencies $1.0 $2.81 to 4.36

ALS Transport Revenue 2.9 3.6
Misc. Professional Services 0.2 3.75
Premium Pay Reduction 3.6 0.0
Overtime Policy Change 1.3 0.0
Total = $9.0 million Total = $10.16 to 11.71

According to this presentation by the City Manager & staff, a 60%/20% reduction in outside agencies for this fiscal
year (5 months) saves $3.0 million while the same reduction of 60%/20% reduction for the entire fiscal year FY 2011
saves only $1.0 million! See next slide for further details on outside agencies cuts.
 Three Year View of Potential Deficits
(millions) as of 1/12/10 Recommendation

FY 2010 FY 2011 FY 2012

Projected $ 6.9 $ 29.4/ 28.45 $ 11.4 / $5.09
O/A Reduction (3.0)/ 3.5 (1.0)/ 2.81 to 4.36
ALS Revenue (0.9)/ 1.0 (2.9)/3.6
Prof. Services Red. (0.2)/ 1.25 (0.2)/ 3.75
Premium Pay/Furloughs (1.3)/ 0.0 (3.6)/ 0.0
Overtime Policy (0.5)/ 0.0 (1.3)/ 0.0
Implementing Council Plan from ?’s (0.0) / 2.1 (0.0) / 4.2
Deficit $ -1.0/ +0.95 $ -20.4/ -14.09 $ 11.4/ $5.09
 REFERENCES:
Slides #1-3 – numbers as presented by City Manager & staff at Mayor & Council on 01/12/10.
Slide #4-8 – numbers in red as presented by City Manager & staff at Mayor & Council on 01/12/10
Slide #4- Adjustments referenced as follows:
1. Outside Agency Reduction (includes half of the 900k directed by Councilwoman Scott as
an offset from MTCVB to TCC).
2. ALS Transport Revenue – according to both TFFA & TFCA on 01/08/10
3. Professional Services Reduction- represents 50% of number yet to be paid out as
presented by City Manager on 01/08/10

Line-items- Response by City Manager to Council questions on 01/12/10:

35K Parking
270K Membership not including 150K essential membership
160K Represents 50% travel budget
250K Supplies budget reduction
309K Cell Phone reduction
90K Initiate a 4/10 schedule in city departments
72K Take Home Car allowance
95K Vehicle Allowance
1.6M Transit Fare Increases
1.3M Zoo Rate Increases

= 4.0M FY2011, 2.0M FY2010