HomeMy WebLinkAboutFY 2010-2011 City Budget Update - February 22, 2011s Budget
Co Update
February
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® At this time, we are projecting a balanced year-end General Fund Budget for
FY 2010/2011
® However, next fiscal year, FY 2011/2012, it is estimated the City will be facing
a $3.5 million General Fund challenge
® While revenue receipts are showing signs of a slow and cautious recovery,
expenses are projected to increase significantly
® This is largely due to previously negotiated salary increases and rising pension
costs
® Pension costs are increasing by approximately $5 million next year
Pension costs will increase yet again the following year creating an estimated
�R million (- nPrnl Viind c'hnrtfnll in FY 2012/2013
City
Council
Budget,"
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February
22,
2011,
However, if PERS changes its 7.75% annual earnings rate assumption, the estimated
shortfall increases to $10 million or as high as $13 million in FY 2012/2013 (i.e. 7.5%
earnings rate versus 7.25%)
® To address escalating pension costs, we will be exploring establishing an "Unfunded
Liabilities Fund" to address the City's over $200 million in unfunded liabilities
Departments are analyzing programs and services to assist in identifying surgical cuts
(i.e. Core, Important and Added Value programs and services)
New revenue opportunities are also being examined
® Management team is actively working with bargaining groups on options to reduce costs
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We will nrecent n mnrP di-IniiPri nndntP nn the current and future budgets at Mid -Year
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