HomeMy WebLinkAboutFY 2011-2012 Proposed Budget Update - Study Session 08-15-20 8/15/2011
City of Huntington Beach
Proposed Budget Update
FISCAL YEAR 2011/2012
August 15, 2011
FredA.Wilson, City Manager
Lori Ann Farrell, Director of Finance
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FY 2011/12 Proposed Budget Update
o Overview provided on August 1, 2011
o Discussion of City Council Revisions
o Budget Adoption Timeline
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8/15/2011
FY 2011/12 Proposed Budget
o The Proposed All Funds budget totals $312.2 million, a
4 % increase from the Adopted FY 2010/11 budget
o The Proposed General Fund budget totals $183.5 million,
a 3% increase from the Adopted FY 2010/2011 budget
o The Proposed All Funds Budget includes 971 FTEs
- 38.5 positions are either eliminated or defunded
- Decreases the Table of Organization by 29 FTEs
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Approved Staffing Revisions
•Economic Development— 5 FTEs eliminated, plus
1 FTE will transfer to another open vacant position
•Fire —Funding for 11 months of one truck and 4
sworn staff has been restored
•Community Services—The Art Curator position has
been restored in the Proposed Budget, along with a
commensurate increase in donations revenue for a
net neutral impact
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Staffing Reductions
o Police—Defunding of 5 Police Officers and I Lieutenant;
Elimination of 4 Police Services/Records Specialists;and,
reduction in part-time support to Aero Unit
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o Library Services—Reduction of a vacant Theater Technician and
a vacant Librarian
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o Public Works—Elimination of 4 filled and 3 vacant service and
maintenance workers; personnel cuts are offset by increases in
outside contracts to reduce service impacts
o Planning and Building—Loss of Senior Administrative Analyst
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Staffing Reductions
29 Positions to be eliminated or defunded*
Department Eliminate Transfer Defund Filled Vacant
Economic 5 1 5 1
Development
Community Services 2 2
Fire** 1 1
Library Services 2 2
Planning and Building 1 1
Police*** 4 6 6 4
Public Works 7 4 1 3
Total 1 19 1 9 16 1 13
*An additional 9.5 positions are also eliminated from the Proposed Budget due to PARS retirements
**The filled Fire position will be transferred to another position
***The filled Police sworn positions will retire in FY 11/12,vacant positions are non-swom /
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Operational Reductions Summary
• Elimination of the Fun-time Day Camp summer program at Central
Park
o Reduction of Aquarium Maintenance at Central Library
o Reduction in contract for Federal Lobbyist
o Reduction in Pier Plaza Maintenance
o Reduction in Animal Control Contract
• Upgrades and enhancements to current technology for financial
software,public records,agendas,and streaming video will be curtailed
• Citywide reductions in overtime, temporary salaries,conferences,
training, supplies,materials, facility maintenance,travel, memberships
and professional/contractual services(including outside counsel)
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Employee Concessions
o Increased employee pickups of pension costs in three
employee groups (Non-Associated, HBFA and POA)will
reduce the City's share of pension costs by about $1 million
o Non-Associated employees increased their pickup to 6.75%
by September 30, 2012
o POA pickup will continue at 4.25% instead of expiring on
September 30, 2011
o HBFA pickup will increase from 2.25% to 6.75% on
October 1, 2011
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I FY 2011/2012 Proposed Budget Recap '
I o General Fund structurally balanced at $183.5 million
o FY 2011/2012 Proposed Budget includes a $581,000
contingency to protect against additional state raids,
revenue shortfalls or a "double dip" recession
o Redevelopment Agency"opt-in" will help protect the
(, annual General Fund transfer, and repayment of$85.5
million
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Redevelopment Shortfall Solution
Estimated Savings
1. Refinance Bonds $1,200,000
2. Reduce Staff/Operations $ 886,500
3. Grant/Loan Repayment from MVB $ 100,000
Total $2,186,500
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Redevelopment Update
o Final Pay-to-Play amount released by State on August 1 st
of$6,795,749
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o Deadline to challenge the payment is today,August 15,
2011
o The City/RDA submitted an appeal to the State today
o Court issued a stay—final decision by January 15, 2011
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Budget Adoption Timeline
Item Proposed Date
September 6,2011 Public Hearing -FY 2011/2012 Proposed Budget Adoption,
Proposed Fee Amendments and Proposed Bond Refunding
September 19,2011 FY 2011/2012 Budget Adoption—If Needed
September 30,2011 Charter Deadline to Adopt the FY 2011/2012 Budget
October 1,2011 New Fiscal Year Begins
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8/15/2011
City g of Huntington Beach
Proposed Budget
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FISCAL YEAR 2011/2012
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