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Home My WebLink About2010 03-30 CC ADJ MINBook 92 / Page 17 01-30-2010 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF NATIONAL CITY, CALIFORNIA January 30, 2010 The Adjourned Regular Meeting of the City Council of National City was called to order at 9:07 a.m. by Mayor Ron Morrison. ROLL CALL Council members present: Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Administrative Officials present: Babaki, Dalla, Deese, Duong, Eiser, Gonzales, Hodges, Ladrido, Smith, Stevenson, Zapata. Others present: City Treasurer Mitch Beauchamp. BUDGET FY 2010 - 2011 (206-1-26) 1. Introduction City Manager Chris Zapata gave a brief PowerPoint Presentation highlighting the proposed focus areas for the budget workshop which included a financial review; short and long term financial outlook and policy direction from the Council, engagement of the public and stakeholders and evaluation of City Council Priorities. A copy of the presentation is attached (see Exhibit A). 2. Budget Presentation Finance Director Jeanette Ladrido presented the FY 2009-2010 Mid -Year Budget update; reviewed the FY 2010-2011 Budget Kickoff process and presented the Five -Year Budget Forecast including Redevelopment and Capital Improvement Projects. A copy of the presentation is attached (see Exhibit B). A recess was called at 10:36 am The meeting reconvened at 10:59 am. All members were present. 3. Cost Reduction & Revenue Efficiency (CARE) Committee and International City Manager's Association (ICMA) Best Practices. Management Analysts Walter Amedee and Angelita Marchante reported on the purpose, makeup, history and accomplishments of the C.A.R.E. Committee (Cost Reduction and Revenue Efficiency Committee) and presented examples of Nationwide Best Practices from the ICMA for cost reduction and revenue enhancement efforts. A copy of the presentation is attached (see Exhibit C). Book 92 / Page 18 01-30-2010 4. Proposed Financial Accountability Report for Proposition D. City Attorney George Eiser made a presentation that reviewed the legal requirements contained in the voter approved one cent district tax measure (Proposition D). A copy of the presentation is attached (see Exhibit D). PUBLIC ORAL COMMUNICATION Jacqueline Reynoso, President and CEO, National City Chamber of Commerce, spoke about the importance of supporting the business base, enterprise zones, redevelopment, business recruitment and retention, 8th Street revitalization, promoting positive media attention, assisting the Mile of Cars, and workforce development and encouraged the City to keep communications open. Georgia Guarano, National City, asked questions regarding funding for the Nutrition Center. Micki Head, National City, spoke about some of the positive impacts the library has had on the lives of residents and urged that it remain open. Jose Medina, National City, spoke in support of reducing the City's carbon footprint, promoting alternative energy and affordable housing. Mona Rios, National City, inquired about the amount of money spent by the City on consultants. CITY COUNCIL COMMENT AND DIRECTION Council Member Van Deventer said, "I think everyone understands we have to look at everything ... I don't think that there are any magic wands out there. You look at the deficit down the road — without starting to make cuts right now it will grow larger and larger in years to come. Remember that every business we have in National City and any new ones that come in helps to reduce the deficit. The bottom line is there will be cuts, there have to be cuts to get a balanced budget — the only way we can do it is to make hard decisions." Book 92 / Page 19 01-30-2010 CITY COUNCIL COMMENT AND DIRECTION (cont.) Council Member Parra said the primary goal of the staff, Mayor and Council is to be good stewards of the public's money. "Fiscal sustainability is a team effort involving the citizens, businesses, staff, Mayor and Council ... National City is doing ok, we're hanging in there, we're providing great service ... but we are still facing the great unknown of what the State is going to do, the unknown fiscal challenges of the future ... we all know that we are here today because of the citizens' support of Prop D — that one cent sales tax ... so this Council and Staff have to be accountable and true fiscal stewards for that money and need to show return on investment to our citizens." Mr. Parra said he believes it is important to protect and retain businesses and to continue to provide quality customer service. Council Member Sotelo-Solis said, "the question that is looming is how we close that $4.5 million deficit? What I would like to move towards is really looking at using most, if not all, of the undesignated funds to pay off the Nutrition Center debt and pay off some of that extra debt to fill that void ... Comments have been made about the State taking away money and it is true, there are take-aways from the State, however, we are all part of the State of California, we are all constituents of the State of California so when we're talking about take-aways, yes, money does go up to Sacramento and they do reshuffle but that's why we have to continue to work with our San Diego delegation ... to affirm the fact that when that money goes up (it) needs to come back down to National City and the south bay communities ... we need to reinforce to our local legislators that we want that money back dollar for dollar for our communities — but again, those services that are provided through the State ... that's our tax payer dollars. I would encourage staff to continue using the C.A.R.E. Committee to continue getting recommendations ... I know that through our City Manager's Office we have hired talented people to serve our residents and businesses. I would like to evaluate the consultants to determine how much we are spending on external consultants. I would like to officially request that that come forward as part of our general plan." According to Ms. Sotelo-Solis, we also need to capitalize on using assessments or benchmarks for success and measuring impacts. Council Member Zarate thanked staff and the public for showing up and expressed interest in knowing what efforts were made to get the word out about the meeting. Member Zarate expressed appreciation to the C.A.R.E. Committee for their input, encouraged them to continue working and concluded that the Council has a great deal of work to do. Book 92 / Page 20 01-30-2010 CITY COUNCIL COMMENT AND DIRECTION (cont.) Mayor Morrison stated that we can't hold where we are, we are all going to have to deal with the issue of the deficit. "At some point we are going to have to take a look at things because we can't stagnate because things are not stagnating around us. The world is moving very rapidly and we have to anticipate it .. . There are so many things that we would love to do but in every one of them we have to not only look at their intrinsic value but we have to take a look at what they will cost and how do we balance out cost with value. It is going to be a challenge going out to the public and getting the public involved with this. We have been very innovative — other cities are looking at us." Mayor Morrison suggested that the funds for the seismic retrofit of buildings should be on hold and not moved at this stage. He said we are in exciting times and congratulated staff, Council, citizens and the business community for stepping up. Motion by Van Deventer, seconded by Sotelo-Solis, to approve staff recommendation regarding movement of funds with the exception of the seismic retrofit funding. Carried by unanimous vote. ADJOURNMENT Motion by Van Deventer, seconded by Sotelo-Solis, to adiourn the meeting to the next Regular Meeting of the City Council and Community Development Commission to be held Tuesday, February 2, 2010 at 6:00 p.m., Council Chambers, National City. Carried by unanimous vote. The meeting closed at 12:27 p.m. The foregoing minutes were approved at the Regular Meeting of May 4, 2010. Mayor EXHIBIT 'A' City of National City Budget Workshop January 30, 2010 Kimball Senior Center 9:00 am PROPOSED FOCUS AREAS OF BUDGET WORKSHOP ♦ Financial Review ♦ Short and Long Term Direction ♦ Public and Stakeholder Engagement ♦ Evaluation of City Council Priorities PRIORITIES DISCUSSION — WE'VE BEEN HERE BEFORE ♦ Fiscal Sustainability ♦ Public Safety ♦ Technology ♦ Citizen Engagement ♦ Image ♦ Fiscal Clarity PRIORITIES DISCUSSION -WHY? • Consensus on City Vision and Priorities provide a road map for staff • Helps Direct Resources and Evaluation of Programs and Services • Focuses Strategic and Department Planning • Aligns Personnel with Priorities • Report Card for Community and City Council PRIORITIES WORK - PUBLIC SAFETY EXAMPLE • Council goal to make National City safer • Recruitment and hiring of key Department Heads • Completion of State of the Art Facility and Training Annex • Ask Community to fund new Facility (Prop S) • Develop Department Strategic Plans and Response Time Studies • Commit New Resources (additional police officers, purchase new Fire Truck) PRIORITIES — CONSIDER A FLUID ENVIRONMENT • Short and Long Term Considerations (Community, economic, political) • Global and Regional situation • Emerging Opportunity and Threat • Financial Strengths and Weaknesses PRIORITIZATION HAS BENEFITTED NATIONAL CITY • Community and residents (Safer and more vibrant) • Facilities and Infrastructure (Streets and parks) • Business and Non -Profits (Plaza Bonita Expansion, Chamber, Boys & Girls Club) • Image and Finishability (Branding, Website, Marina Gateway) • Fiscal Stewardship (Four consecutive years of building reserves from $4.4 million to a high of $9 million —currently projected at $7 million, bond rating stable, no major long term debt added) PRIORITIZATION PROVIDES A FRAMEWORK FOR PROGRESS ♦ Planning Investment (General Plan, Downtown Specific Plan, Westside Specific Plan, 5 Year Strategic Plan) ♦ Preparedness for next positive cycle (Infrastructure Investments/capacity along with Planning tools) ♦ Continued Investment in Business, Major Corridors and Gateways ((Enterprise Zone, 8th Street Improvements, Mile of Cars Signage) ♦ Creation of value for residents, investors and business (1 Billion dollar increase over 5 years in our Assessed Value from $1.9 Billion to approximately $3 Billion) ♦ Best in Class award winning facilities/development (Education Village, Library, Fire Station 34, Paradise Village, Marina Gateway) PRIORITIZATION PROVIDES A FRAMEWORK FOR PROGRESS (Continued) • Housing stock improved (1100 new units of diverse housing) • Quality of Life Facilities & Cultural Assets inventoried, invested in, enhanced and planned for (Skate Park, Soccer Field, Granger Music Hall) • City Services Improved and Expanded (Public Safety, Library, Code Enforcement/Graffiti Abatement, Community Outreach) • Focus and investment in older parts of National City (Westside Specific Plan, Paving program, Paradise Creek) PRIORITIZATION IS DIFFICULT BUT NECESSARY - FISCAL SUSTAINABILITY EXAMPLE ♦ Articulated Stagnant and Auto Dependent Revenue Situation vs. rising costs ♦ Community Vote on Sales Tax Increase temporarily addresses structural deficit ♦ Council decision to Merge City and Redevelopment Agency ♦ Downsizing of Administrative Staff (Eliminated 11 of 54 Executives/Managers = $1.2 million salary savings) ♦ Employee and City Council Contributions to Retirement Systems (0 to 89% of employees contributing in last two years, Retirement funding at 90%, limited Retiree Health Care Costs at $110K) ♦ Aggressive and Successful Grants Program (Safe Routes to School, Paradise Creek) $64 Million Dollars over last three years ♦ Employee Innovation and Performance (CARE Committee) CITY COUNCIL HAS IMPROVED SERVICE LEVELS, PROVIDED RELIEF AND CREATED VALUE FOR COMMUNITY ♦ Development Fee Rollback ♦ Frozen Refuse Rates for residents and business for last three years and Sewer Rates for one year ♦ Lowered Library Tax Assessment for residents ♦ Recreation and Park Facility Construction (Skate Park, Park Repair Program) ♦ Affordable and Market Senior Housing Construction (Paradise Village, Plaza City Senior Apartments) ♦ Public Safety Enhancements, Expanded Code Enforcement/Graffiti Abatement, 7 Day Library Service SERVICE IS PROVIDED BY EMPLOYEES & LEADERSHIP IS PROVIDED BY CITY COUNCIL • Employees have worked with purpose and focus to implement your vision of a vibrant National City • Community has temporarily provided the resources to avert what is happening to governments all around us • Employees have produced results for residents (safer city, better facilities and roads, partnerships and grants) • National City's proud past of innovation (Mile of Cars, Plaza Bonita, Marina) has carried forward (Drive In Development, Plaza Bonita Expansion, Marina Gateway) CONTINUE TO PROVIDE EXISTING LEVELS OF SERVICE? ♦ Status of National, State, Regional and Local Economy (weak and recovery fragile = big box loss) ♦ What limits National City (Built Out City, Lack of Revenue Diversity, $5 million dollar State take away) ♦ Short Term Outlook (State going to get worse, PERS payment spike, New Project revenue does not fill structural gap, rising costs) ♦ Long Term Outlook (End of Proposition D Revenue, Redevelopment Funding, rising costs) ♦ Review of General Fund and Tax Increment Fund Status EXHIBIT'B' Mid -Year Budget Update Fiscal Year 2009-2010 As of December 31, 2009 Fiscal Overview ♦ Clean financial audits ♦ Standard & Poors Rating remains = A- ♦ Continuous review of operating costs & seeking revenue enhancements ♦ Limited General Fund Debt ♦ Contingency reserve closed at $7.5 million @ 6/30/09 General Fund Budget Balancing Methods • One time transfers from internal service funds totaling over $1.5 million • Froze 23.5 positions totaling $1.6 million • Expenditure reductions totaling close to $530,000 • Council authorized contingency reserve to be reduced from $7.5 million to $7.2 million Balanced Budget @ $38.9 million FY 2009-2010 GENERAL FUND MID YEAR REVIEW Mid Year Review Process ♦ Departments reviewed maintenance & operations budgets under their area of responsibility and estimated expenditures to the end of the fiscal year ♦ Finance analyzed overall revenue and expenditures and reviewed with the City Manager's office General Fund Departments requiring increases in their Budget Description Budget Inc Revised Police 20,907,961 250,000 * 21,157,961 * Increase in Animal Control contract Engineering 712,839 44,000 * 756,839 * Monitoring costs for Department of Environmental Health Revenue Analysis Description Budget Revised Inc/(Dec) Sales Tax Prop D Prop Tax Prop Tax In Lieu Trans Occ Tax Inv Earnings Parking Citation Other Revenue 13,858,928 8,300,150 1,683,801 4,960,300 1,055,386 1,000,000 200,000 5,221,682 10,836,000 7,728,000 1,494,936 4,993,032 718,254 626,000 240,000 5,102,200 (3,022,928) (572,150) (188,865) 32,732 (337,132) (374,000) 40,000 (119,482) TOTAL REVENUE CHANGES (4.541,825) Expenditure Analysis Description Budget Est Actual Inc/(Dec) Personnel 26,346,315 25,776,762 (579,553) Maintenance & Ops 4,342,139 3,402,534 (939,605) Capital Outlay/CIP 335,000 330,000 (5,000) Estimated Savings (1,574,158) Adopted Budget vs Estimated Description Adopted Budget Estimated Thru 6/30/10 Change % Revenue 38,690,378 34,148,553 (4,541,825) (12%) Expenditures 38,931,653 37,407,495 * 1,574,158 4% Surplus/(Deficit) (241,295) (3,258,942) (2,967,667) (8%) General Fund Subsidies/Repayment From To Amount General Fund Nutrition Center 52,000 Repayment of Nutrition debt 1,538,338 Personnel Comp Fund 926,478 Facilities Fund 1,326,860 Other State Grants 454,319 Total subsidies/Repayment 4,297,995 Anticipated PERS Increase - FY 11/12 ♦ Projected increase is 2-4% of payroll ♦ Estimated "spike" in cost is 1,032,416 Fund Reserves 74t G.> 0 4u Contingency Reserve General Fund Policy: ... range between 25% and 50% of a single year's General Fund operating expenditures Description Inc/(Dec) Audited Financial Statements, 6/30/09 7,500,000 Amount needed to bring to min reserve 1,851,874 Contingency balance, 25% goal * 9,351,874 * 25% x $ 37,407,495 History of Contingency Reserve 25-50% of operating expenditures 12 2 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 NMI DESIGNATED FOR CONTINGENCIES-^16--25%Goal 2008/09 2009/10 Summary of Obligations Description Amount FY 09/10 General Fund Shortfall Funds Requiring Subsidies Estimated PERS increase (FY11/12) Contingency Reserve 3,258,942 4,297,995 1,03 2,416 1,851,874 Total Obligations 10,441,227 What have we done? ♦ Departments have been asked to re -visit operating budgets to identify additional savings or identify potential revenue sources ♦ Finance Department has reviewed other funds that may be transferred back to GF ♦ Evaluated reserve levels Potential One Time Funding Sources Undesignated, Unreserved Fund Balance Civic Center Refurbishing Cultural Arts Fund Landscape Reserve Capital Projects Reserve Productivity Improvement Reserve Park Security/Gate Lease Reserve Employee Computer Purchase Fund 7,951,084 1,276,000 85,812 398,144 85,341 75,000 28,000 50,000 Potential One Time Funds 9,949,381 Summary of One Time Funds vs General Fund Obligations Total One Time Funds Total Obligations 9,949,381 (10,441,227) Available Funds/(Shortage of funds) (491,846) Other Funds Funding delayed to FY 10/11 Description Budget Incr/Decr Proposition 1B ♦ Funding delayed by the State of California 924,000 (924,000) Tax Increment Revenue Mid Year Review Impacts on Tax Increment Revenue ♦ Supplemental ERAF payment due to the State for FY 09/10 and FY 10/11 ♦ SERAF was not budgeted and payment will create a shortfall in the Tax Increment Budget FY 09-10 FY 10-11 $5,158,424 $1,062,028 ♦ Property Assessed Values have decreased - Results in decrease of Tax Increment Revenue Mid Year Tax Increment Budget Balancing Methods • Departments reviewed maintenance & operations budgets and were requested to reduce line items • Departments reviewed CIPs and were asked to identify projects to be delayed/deferred to other years • Finance reviewed revenues and fund balances to ensure reserve requirements were met (Tax Allocation Bonds) Tax Increment Revenue Description Adopted Budget Estimated Tax Increment Revenue 13,008,428 12,038,378 General Fund Repayment for Nutrition Center * State Grant 0 1,538,338 150,000 150,000 Total available resources 13,158,428 13,726,716 * If approved by City Council Additional Funded Positions ♦ Community Development Specialist 1 (Grant funded) ♦ Admin Secretary - Neighborhood Services (1/3 General Fund, 2/3 Tax Increment Fund) Total Cost: $ 89,028 Tax Increment Fund Expenditures Description Adopted Estimated Budget Amount over/(under) Budget Debt Service/Pass Thru Payments Personnel Maint & Operations Capital Projects Operating Transfer - General Plan Operating Transfer - CDBG Fund 6,379,013 11,358,851 2,381,286 2,345,826 1,570,031 978,419 6,342,567 3,649,252 666,667 666,667 0 125,567 4,979,838 (35,460) (591,612) (2,693,315) 0 125,567 Total 17,339,564 18,914,708 1,575,144 Capital Project Reductions/Savings Description Amount Kimball House (3005) Marina Gateway (3826) 8th Street Smart Growth (3918) Westside Implementation (3938) Arts Center (3937) Harbor Drive Implementation Other CIPs (10,000) (1,000,000) (300,000) (250,000) (250,000) (250,000) (633,315) Total CIP reductions (2,693,315) Other Reductions/Savings Description Amount Finance Department Non -Departmental Redevelopment Housing Housing Inspection Program Economic Development (4,500) (186,030) (104,136) (58,136) (93,600) (146,210) Total other reductions (592,612) Tax Increment Summary Description Adopted Estimated Difference Budget Revenue Expenditures 13,158,428 13,726,716 568,288 (17,339,564) (18,914,708) 1,575,144 Surplus/(Deficit) (4,181,136) (5,187,992) Fund Balance, 7/1/09 5,187,992 Fund Balance, 6/30/10 0 FY 2010/2011 Projected General Fund Budget General Fund —Revenues Sales Tax District Tax (Proposition D) Property Tax In Lieu of VLF Property Tax Transient Occupancy Tax Investment Earnings All Other Revenue $10.8 M 7.7 M 4.9 M 1.5 M .7 M .6 M 7.9 M Total Estimated Revenue $ 34.1 M General Fund -Operating Expenditures Personnel Maintenance, Operations & Capital Outlay Internal Charges Operating Transfers Library, Parks, Nutrition Center 26.3 M 4.7 M 6.7 M 1.2 M Total Estimated Operating Expenditures $ 38.9 M General Fund Summary Estimated Revenue $34.1 M Estimated Operating Expenditures (38.9 M) Surplus/(Deficit) (4.8 M) *excludes funding for Capital Projects General Fund Projections General Fund Projections to 2014 Description 2010 2011 2012 2013 2014 Revenue 34.1 34.1 34.3 34.9 35.6 Expenditures (37.4) (38.9) (39.7) (40.5) (41.3) Surplus/(Deficit) (3.3) (4.8) (5.4) (5.6) (5.7) General Fund History and Projections -4- Revenue -�— Expenditures CD CD GU Cd ow G) 5 4) u et E-1 Tax Increment Revenue — FY 10/1 1 Estimated Tax Increment Revenue $ 14.9 M Less: Housing Set Aside Requirement ($2.9 M) Subtotal: 80% Tax Increment 12.0 M Less: Debt & Pass Through Payments ($ 9.4 M) Less: Operating Expenditures ($ 3.5 M) Amount available for Projects (.9 M) Tax Increment Revenue Projections to 2014 Description 2010 2011 2012 2013 2014 Revenue * 12.0 12.3 12.7 12.9 13.2 Expenditures (excluding Capital Funding) (12.9) (11.1) (10.9) (11.0) (11.2) Surplus/(Deficit) (.9) 1.2 1.8 1.9 2.0 * 80% Tax Increment Revenue Tax Increment Revenue History Revenue -B- Expenditures Next Steps ♦ February 16, 2010 Council item to summarize recommendations and reflect mid -year changes in FY 09-10 Budget ♦ City Departments begin FY 11-12 Budget cycle ♦ FY 11-12 Budget workshop last week of May 2010 ♦ Adopt FY 11-12 Budget no later than June 30, 2010 QUESTIONS? Iai:'I�i i &. • 1 0 • 1 1 • 0 u G7 rJ Cll E . 0 CoN N Cl� August 200 - Created an on-line survey Collected 423 September 2009 0 • October 2009 November 200 C/D 0 Q) CA E 0 0 U 0 u C�1 c> N E U N Q ized/selected ideas to pursue crs bIJ 0 No Fin ♦ ICMA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin Summary: City Comment Italicized Overtime audit: In -process Article Title Durham, North Carolina, Adopts New Policies After Police Officer Claims Excessive Overtime. Source ICMA News Briefing: October 13, 2009 Article Clip "The audit last month of a Durham police officer's overtime claims did not report all that the department has done to curtail abuse, Police Chief Jose L. Lopez Sr. said." Lopez said that "a list of every police employee making more than $800 in overtime per biweekly pay period now goes to the assistant chiefs, who validate the extra hours. They're also getting reports of all officers receiving overtime pay." City Manager Tom Bonfield had ordered an audit in response to news that one desk officer who "makes $52,665.90 a year in regular pay" had claimed "$62,583.13 in overtime between September 2008 and Aug. 31." Changes have been made in response including adopting policies "so payroll workers can report pay irregularities without fear of retribution," and "city auditors will review overtime pay for the department's top 20 earners." Charging for monthly trash service: The City contracts with EDCO. Residents are charged approximately $39-$43 every three months. Prices differ for businesses. Frontenac, Missouri, May Charge Residents For Trash Service To Fund Firefighters, Avoid ISO Downgrade. ICMA News Briefing: October 5, 2009 "Residents are facing the prospect of paying $30 a month for trash service or seeing their homeowners' insurance rates spike." Frontenac currently "pays for trash service from its tax revenue." However, "under a plan being considered by aldermen, householders would start paying $30 a month to Veolia, the :hauler the city uses," thereby saving the city $500,000. a year. Four day work week: In 2006 the majority of City employees went to a four day work week El Paso, Texas, Saves Money With Four Day Weeks. ICMA News Briefing: August 31, 2009 The city saved $100,000 during the first two months of the program, far exceeding its original projected savings of $55,000 for the entire three months," And "the city also saw a 10 percent savings in fuel costs by running most of its fleet one less day a week." Fines for scavengers: The City currently issues fines, however it is difficult to enforce because scavengers must be caught in the act: Redwood City, California, Prohibits Taking Recyclables From Curbside Bins. ICMA News Briefing: August 28, 2009 "Scavengers caught taking recyclables from curbside bins in Redwood City will soon face a $100 fine under a new law the city council approved this week. The offense is a misdemeanor under state law, "but local prosecutors rarely pursue charges for such a minor crime." Police are cited saying that the thefts "cause noise and sometimes lead to other crimes like vehicle burglaries." Also, they "take away from the revenue the Peninsula's trash agency earns from selling bulk recyclables." Reduce mailing and printing by sending bids and communications electronically: City bid opportunities are available on the City's website. Morris County, New Jersey, Finds Savings By Using Internet For Communications, Bids. ICMA News Briefing: August 28, 2009 The county conducts "communication services and public bid procedures...primarily online" and has "approved the start-up of the county's Facebook page." Use of the internet "allows the county to reach a larger audience, said purchasing director James Abeline, and reduce its mailing and printing costs," by eliminating the need to print and mail "bids, changes to the bids and associated documents." Page 1 of 12 ICMA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin Property owners held responsible for delinquent solid waste accounts: The City contracts out to EDCO and the resident is responsible for delinquent accounts Gridley, California, City Council To Hold Property Owners Responsible For Solid Waste Accounts. ICMA News Briefing: August 5, 2009 Gridley, CA, City Council "to hold property owners responsible for delinquent solid waste accounts." City Administrator Rob Hickey reported the current amount of delinquent accounts is $3,848. The accounts "are previous amounts that the City of Gridley had already paid to Waste Management Waste Management is now billing Gridley customers and will give a report once a year of who has not paid for services and will then be sent lien notices from the City." The delinquent accounts were attributed to renters failing to pay. Property owners will now be held responsible for the accounts. Furlough days: Under review Dallas Praised For Handling Of Furloughs To Cut Spending. ICMA News Briefing: July 8, 2009 The lights were off and the doors were locked Monday at City Hall. The first of two mandated furloughs for most city employees raised the question: If Dallas government disappeared for a day, would anybody notice?" Though "some residents were inconvenienced by the shutdown, and a number of employees were frustrated by the day without pay ... on balance, city leaders effectively minimized hardships endured by taxpayers and workers." Also, "any aggravation caused by these unpaid days off is preferable to making more painful and permanent cuts to balance the budget." The days were chosen to extend the July 4 and Labor Day holiday weekends." Cuts made through attrition: Positions have been eliminated or left vacant. Topeka, Kansas, Manager To Balance Budget With Higher Levy, Fewer Positions. ICMA News Briefing: July 8, 2009 Topeka City Manager Norton Bonaparte issued his proposed budget for 2010 which "includes a mill levy increase of 1.85 mills" and "the elimination of a million dollars worth of salaried city worker positions." Bonaparte said the cuts would be achieved "through attrition and not through layoffs." No longer waiving fees for events: Typically the City Council does not waive fees. Redlands, California, Considering No Longer Waiving Fees For Events. ICMA News Briefing: June 29, 2009 Redlands City Council is considering "no longer waiving fees for events" such as the annual Forth of July fireworks show "due to difficulty in raising funds." This year's fireworks show cost the city $31,000. "The City Council raised the issue of reconsidering fee waivers during which Mayor Pro Tem Pat Gilbreath said the city may be unable to continue the practice of, in effect, giving away money as it faces a budget deficit." Gilbreath noted, "The total amount is in excess of $100,000," which "represents one police officer or fire fighter." Gilbreath added, "At some point, we have to be more realistic about what the city can afford." Solar -powered warning signs: The City has solar powered flashing beacons, solar powered in- pavement flashing lights for cross walks,`end solar powered radar Speed feed back signs purchased with Safe Routes to School grant funds. Blinking, Solar -Powered Signs Seen As Saving Money, Lives. ICMA News Briefing: June 24, 2009 "More towns are using solar -powered warning signs" to "inform the public, warn motorists of danger and save energy. The blinking signs use light -emitting diodes to produce blinks that "attract motorists' attention from three or four blocks away." Timothy Collins, points to the savings. "These things function 24 hours a day, 365'days a year," and "you are not paying an electric bill." Lyndhurst, N.J., Police Chief James O'Connor; said his city has "already seen a reduction" in accidents at intersections that use the signs. The Tribune notes that one study showed the signs "reduced incidents of vehicles running through stop signs by 52 percent." Page 2 of 12 ICMA News Briefings: Best Practices Nationwide Al Examples of What We Have Done or Doin Health care and wage concessions for municipal workers: Labor negotiations determine concessions received from employees. Fall River, Massachusetts. Mayor Seeks Taxes, Employee Concessions. ICMA News Briefing: June 16, 2009 Mayor Robert Correia said the city could face almost 200 additional layoffs in fiscal 2010 unless the City Council hikes taxes and municipal workers accept proposed health care and wage concessions." Correia is calling for "a 5 percent tax increase, which would generate $3.2 million -- the equivalent of about 82 salaries," and a "Blue Cross Master Health Plus plan concession, which would pare $2.1 million -- the equivalent of about 56 salaries," as well as an "8 percent wage concession, which would cut $2.1 million -- the equivalent of about 55 salaries." Fall River "laid off nearly 150 municipal employees in March after the state reduced Fall River's local aid by nearly $2.9 million." No pay increases: For the next three, years management will not receive a raise. As for POA, FFA, and MEA they receive raises based on their MOU: Conway, South Carolina, Budget Freezes Pay But Avoids Layoffs. ICMA News Briefing: June 15, 2009 City residents won't be paying more in taxes, but the city's 260 employees won't be getting more in pay during the fiscal year that begins July 1." City Administrator Bill Graham said that the budget contains "no new positions" and no fee increases. Mayor Alys Lawson said, "It'S a very lean budget, but we feel like we addressed the needs of the community" and "we did not have to eliminate any positions." The budget does include additional funding for park and drainage improvements. No new positions: The Personnel Review Committee recommends hiring or filling existing vacancies. Orangeburg County, South Carolina, Cuts Aid To Outside Organizations To Avoid Layoffs. ICMA News Briefing: June 8, 2009 Orangeburg County won't be increasing its tax rate next year, but a number of local organizations will be feeling the financial pinch," because, "council members agreed to cut county funding to 28 outside agencies by 15 percent in order to avoid a 1.4 mill tax increase in next year's budget." Orangeburg County Administrator Bill Clark "noted that county officials had already proposed an 13 percent cut to outside agencies in the draft budget." Clark also said, "The county will be getting $947,000 less from the state Local Government Fund this year." The proposed budget "is approximately $1 million below the 2008 budget level" and "contains no employee raises, no new positions," but "Clark said another goal of the cost-cutting is to prevent the layoffs and furloughs that other counties in the state are considering." Municipalities sharing services: Engineering contracts with employees from the City of Chula Vista; Public Works has a mutual aid agreement withthe City of San Diego to utilize equipment in emergency situations. Westchester County, New York, Promotes Sharing Of Services To Save Money. ICMA News Briefing: May 4, 2009 "In the face of increasingly angry taxpayers, public officials in Westchester are scrambling to shrink their budgets. The financial crisis has given new urgency to a municipal consolidation movement that has sputtered in the county since the 1970s. Some municipalities are considering their own elimination or merging with others, and many more towns and villages are considering sharing services more widely." New York Gov. David A. Paterson "has kept pressure on municipalities to find ways to save money." Yet "for decades, proposals to merge police and fire departments in Westchester have faced opposition from taxpayers who prefer community -based services and unions that want to protect jobs." That is said to be changing and "Westchester government is actively promoting countywide collaboration and is sponsoring a conference on shared services on June 2 for local governments, schools and special districts." Page 3 of 12 ICMA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin Restrictions on "all new purchases above $6,000 must be reviewed by the finance director and city administrator": The City has a Purchasing Review Committee (PRC) to determine the need for equipment. O'Fallon, Illinois, Places Limits On Overtime, Travel And Large Expenses. ICMA News Briefing: December 31, 2008 O'Fallon, IL, "Restrictions on overtime pay, travel expenses and other expenditures have been put in place as the city continues its struggle with lost sales tax revenue due to the faltering economy." Mayor Gary Graham said, "At this time, no services to our residents will need to be cut." Instead the city has moved to require that "all non -emergency overtime hours must be reviewed and approved the department director. All travel and training will be reviewed and must receive city administrator approval." And "all new purchases above $6,000 must be reviewed by the finance director and city administrator." Meanwhile, "City Administrator Walter Denton said no layoffs are planned." Red Tight cameras: Under review Columbia, Missouri, Looks To Red Light Cameras To Help Balance Budget. ICMA News Briefing: August 25, 2009 The city is also exploring ways of increasing revenue through" such measures as "two red light, cameras recently installed" and Police Chief Ken Burton also brought up the possibility of making a change to the department's policy on private security alarms." Admin - License plate readers: The City should receive license plate readers within the next year through grant funds. Calvert County, Maryland, Acquires License Plate Readers. ICMA News Briefing: August 13, 2009 The Washington Post reports that Calvert County, MD, sheriff's deputies "are bringing a new set of eyes to their traffic duties" through a "grant of $44,000 from the Governor's Office of Crime Control and Prevention to purchase two license plate readers." The system uses "a camera mounted to a patrol car that can scan license plates -- parked or in motion -- as the cruiser's operator drives by. A computer immediately checks motor vehicle databases for stolen vehicles, suspended licenses, warrants and other information." In one demonstration. the reader "found 20 violations in about 30 minutes, said 1st Sgt. Todd Ireland," who called the system "a force multiplier." In addition, the "license plate reader will help protect deputies by giving them valuable information before they pull a vehicle over, such as whether the owner is a suspect in a crime, Ireland said." Reduce paper usage to cut costs: Many forms;have been digitized and are made available on the City's website. Additionally, business ir'cer}ses can now be renewed dnline. Toledo, Ohio, Councilman Wants To Reduce Paper Usage To Cut Costs. ICMA News Briefing: April 15, 2009 "Toledo city government used 7.15 million sheets of paper in 2008" and Councilman Joe McNamara "wants that number reduced." Last year, "the 12 Toledo councilmen and their staff of about a dozen used 311,288 sheets of paper, or about 1,300 sheets every business day.... The city spent more than $57,000 last year for copy paper at $39.90 per 5,000-sheet case. Beginning in July, the city used only 100 percent recycled paper." McNamara "suggested council provide copies of its weekly agendas and accompanying documents online for the public and media rather than on paper" and "said he will introduce a resolution that directs council staff to provide public access to the packets via download on council's file transfer Protocol sever." Page 4 of 12 ICMA News Briefings: Best Practices Nationwide A Examples of What We Have Done or Doin Freeze in salaries for elected officials: Past practice has been to go with MEA negotiated salary increases, however currently City Council has had their salaries reduced, not frozen. San Jose Commission May Recommend Freeze In Salaries For Elected Officials. ICMA News Briefing: April 1, 2009 "In light of San Jose's more than $61 million budget deficit and recent handful of layoffs," the Council Salary Setting Commission "is considering a recommendation that the city's elected leaders get no raises for the next couple of years." The commission "also argues against a pay cut for the mayor and 10 council members, saying the savings would be insignificant and the move could narrow the talent pool of those seeking office." The commission will forward its recommendations to the city council. Increase in water and sewer rates: Macomb, Illinois, Approves ICMA News "The Macomb City Council approved a sharp rate increase in water and sewer rates Monday, The City's water provider has Increase In Water And Briefing: saying the hikes are necessary to keep up with swelling city costs." Water rates will be increased water rates by18%. In turn the City has worked to decrease water usage by 20%. The City is a pass through agency. Sewer Rates To Keep Up With Costs. March 18, 2009 increased 20 percent to $3.41 per cubic foot, while sewer rates were raised 10 percenfto;'$5.26; per cubic foot of usage. While "aldermen expressed "reluctance to vote for the cost increases...City Administrator Dean Torreson said the city has experienced growing deficits in the water fund the last two years and those costs are only expected to rise." In supportof his argument Torreson showed that water rates in other cities were higher with Macemb's.rates "up to four -times lower than some cities." Possible cuts include: "defer or eliminate certain capital expenditures Crookston, Minnesota, Looks To Keep Staff Amid ICMA News Briefing: "City Finance Committee took the first step in dealing with inevitable cuts to Local Government Aid by discussing long term financial planning." A draft set of budget recommendations "do not [undetermined savings]: cut pool Budget Cutting. February address levy increases, as the city is trying to hold the line in keeping its property taxes down. contribution ($68,000]: additional CHEDA contribution decrease ($25,000); reduce general fund contribution for street improvements ($50,000); and storm water utility fee ($50,000).": The City is reviewing and prioritizing all C/Ps 27, 2009 Nor do they propose staff or service cuts." Instead, the recommendations are "long-term in nature, as opposed to short-term deferrals or utilizing one-time monies for ongoing expenditures," according to City Administrator Aaron Parrish. Parrish said the city faces a "decrease of about $250,000 this year and another $280,000 next year, which would accumulate to $530,000 in 2010." Possible cuts include: "defer or eliminate certain capital expenditures (undetermined savings); cut pool contribution ($68,000); additional CHEDA contribution decrease ($25,000); reduce general fund contribution for street improvements ($50,000); and storm water utility fee (S50,000)." Page 5 of 12 ICMA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin A Enter into agreement with surrounding cities, school districts Minneapolis -Area Local Governments Cooperate ICMA News Briefing: "Following a year in which fuel prices reached historic.highs, more than 30 metro -area cities, counties, school districts and state agencies have banded together to purchase more than 5 and state agencies to lock fuel To Buy Next Year's Fuel. December million gallons of fuel next year in a move that will lock in lower prices and reduce their fuel bills prices: The City has researched fuel prices with several providers and we have found the provider with the most competitive price will not lock his price,however he is still less expensive than the provider that will loCk so weare continuing with our 29, 2008 by hundreds of thousands of dollars. Prices in the contracts range from $1.439 for gasoline to $2.31 for premium diesel, below recent market averages in the metro area." This seen as part of a nationwide trend for local governments to purchase "larger volumes of fuel earlier in hopes of seeing stability and savings in the next budget year." Eui'rent vendor and we go' back annually to compare prices. Asked departments to reduce Minnesota Cities Leave ICMA News "officials are looking for ways to save money without reducing services, and while line -item budgets: Departments were asked Positions Vacant; Cut Briefing: reductions are being found in many budget areas, some things -- people, equipment to submit plans to reduce their Back On Capital Expenses September replacement and others -- are in the budget crosshairs in most cities around the area. They're budgets by 5%,10%, 15% To Balance Budgets. 15, 2009 prime for cuts because they cost a lot. And cities have to save a lot." Sauk Rapids Finance Director Jack Kahlhamer said that "the city will implement 12-day furloughs for workers next year" in order "to see a savings of about $100,000," and "will save about 5220,000 by eliminating four positions." Waite Park City Administrator Shaunna Johnson said that "right now leaders hope to save jobs" but may make "cuts to training and capital equipment budgets" and has already "asked all departments to reduce their budgets by 5 percent." Cuts to capital improvement Minnesota Cities Leave ICMA News "officials are looking for ways to save money without reducing services, and while line -item budgets: Incase of any shortfalls' Positions Vacant, Cut Briefing: reductions are being found in many budget areas, some things -- people, equipment CIP budgets -will be. suspended : Back On Capital Expenses September replacertient and others -- are in the budget crosshairs in most cities ~around the area. They're To Balance Budgets. 15, 2009 prime for cuts because they cost a lot. Arid cities have to save.a lot."`Sauk Rapids Finance Director Jack Kahlhamer said that "the city Will implement 12-day furloughs for workers next year" in order "to see a savings of about $100,000," and "wilt Save about $220,000 by eliminating four positions." Waite Park City AdministratorShaunna Johnson said that"right now leaders hope to save jobs" but may make "cuts to training and capital equipment budgets" and has already "asked all departments to reduce their budgets by 5 percent." St. Augusta City Admiriistrator Bill McCabe said, "It's easier to make cuts at the capital improvement level" Page 6of12 ICMA News Briefings: Best Practices Nationwide A Examples of What We Have Done or Doin Restructuring overtime: Overtime must be approved prior to accumulating hours Columbia, Missouri, Balances Budget With Changes To Employee Benefits, Cuts To Service Agencies. ICMA News Briefing: September 22, 2009 Columbia, Missouri, City Council approved its budget, a task that "has been particularly difficult this year as the city faced a projected 2.9 percent drop in revenue." and "two areas in particular garnered the most discussion Monday night: changes to employee benefits and cuts in social services funding." The changes are expected to save "about $973,000...by restructuring overtime pay and reducing sick -leave buybacks." Regarding social services funding, Watkins had asked the council to decide for "level funding; a 2.5 percent cut; or a 5 percent cut," and the council chose to cut "roughly 2.5 percent." Conserve energy in govemment buildings: Honeywell has conducted an analysis's of the City's energy use to develop ways to lower costs for overall consumption throughout City facilities, street medians, and parks. Berks County, Pennsylvania, Expects $1.2 Million Savings Annually From Energy Plan. ICMA News Briefing: September 16, 2009 Berks County officials expect that a plan to conserve energy in government buildings "will cost about $11.3 million" and save the county "about $1.2 million annually, recovering all the costs in a little more than nine years." The county"will borrow the money to complete all but two of, the projects," and those will be covered by federal economic stimulus grants. According to the Eagle, "the projects were identified by consultants who completed an energy audit of all county., facilities" and those consultants,"NORESCO, Westborough, Mass., must make up the difference if the county does not recover the costs in time," according to county officials. TN., Eagles lists the Droiects covered under the plan. Eliminating vacant staff positions: Five management positions were eliminated and 23.5 positions were unfunded this fiscal year. Austin, Texas, Balances Budget By Eliminating Vacant Positions, Freezing Pay. ICMA News Briefing: September 15, 2009 The Austin City Council approved a balanced fiscal year 2010 budget on Monday morning...that maintains core services despite the challenged economy." In the $2.8 billion budget, "an estimated $30 million revenue shortfall was closed in part by eliminating 105 vacant staff positions and including no pay increase for city employees." City Manager Marc Ott said that the budget "maintains core services including public safety," and was the result of a process in which he said, "We explained to the community early on what we were facing, received unprecedented input, and with the Council, worked toward meeting those concerns." Hotel tax 2.75: The TOT is 9% compared to San Diego at 10.5% or Chula Vista at 10% Chicopee, Massachusetts, Adds Meals Tax To Save Public Safety Jobs. ICMA News Briefing: September 2, 2009 ...community of Chicopee "added a .75 local meals tax on restaurants, hoping to raise more' revenue." The council also "tabled an option to raise the hotel tax from 4 percent to 6 percent, saying local hotel owners already have to charge an extra 2.75 percent tax to pay for an upgrade of the MassMutual Center in Springfield and a new tax would put them at a competitive disadvantage." Budgeting less for gasoline for its vehicle fleets:" With the purchase of fuel efficient hybrids we are saving money Lafayette, Indiana, Cuts Gasoline, Equipment Budgets And Leaves Some Positions Vacant. ICMA News Briefing: September 15, 2009 Lafayette, Mayor Tony Roswarski announced that the planned $900,000 in cuts "will be closer to $520,000 due to the rising costs of employee health care," but "he stressed that no services would be cut despite the smaller budget." Instead cuts include "budgeting less for gasoline for its vehicle fleets, leaving some empty positions vacant and holding off on purchasing needed equipment, such as trash trucks." Page 7 of 12 1C`'IA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin 24 Holding off on purchasing needed equipment The City has a Purchasing Review Committee (PRC)-to determine the need for equipment: Lafayette, Indiana, Cuts Gasoline, Equipment Budgets And Leaves Some Positions Vacant. ICMA News Briefing: September 15, 2009 Lafayette, Mayor Tony Roswarski announced that the planned $900,000 in cuts "will be closer to $520,000 due to the rising costs of employee health care," but "he stressed that no services would be cut despite the smaller budget." Instead cuts include "budgeting less for gasoline for its vehicle fleets, leaving some empty positions vacant and holding off on purchasing needed equipment, such as trash trucks." No pay raises: Until 2012 management will not ask a raise. As for POA, FFA, and MEA they receive raises based on their MOU. Reno, Nevada, Seeks Agreement By Unions To Forgo Raises. ICMA News Briefing: June 8, 2009 city officials have agreed to not lay off any city workers who agree to skip raises for the next year and let the city miss one payment to its health insurance plans. But the city says it can only keep its promise as long as the economy doesn't get worse." The Reno City Council "has been appealing to employee unions to give up two 2.1 percent raises over next year," and "has been looking for ways to avoid laying off up to 60 employees." The Reno firefighters union "had offered to forgo pay raises to help avoid layoffs." Travel: Travel has been cut significantly and prior approval must be given by the Purchasing Review Committee (PRC) Port St Lucie, Florida, Cutting Memberships In Effort To Save Money. ICMA News Briefing: September 15, 2009 City officials may slice more of the city's annual memberships from the budget as the bills for dues arrive this month." If has "already cut its $1,000 membership with the Latin Chamber of Commerce of the Treasure Coast," after "Mayor Patricia Christensen wrote to the chamber, saying the city was unable to renew its membership because of budget constraints, declining property values and the current state of the economy." In addition, "the council cut its membership and travel to the U.S. Conference of Mayors, which was budgeted for $15,000 each year." And "although all training and travel expenses for City Manager Don Cooper have been removed from next year's proposed budget, he will keep annual memberships required by law" ' in clud inaICMA. Limit hours of operation: In 2005 the Library and pool temporarily limited hours of operation. Cities Face Declining Revenues. ICMA News Briefing: September 1, 2009 "45% --[of cities] raised fees on everything from garbage collection to overdue library books." ... "limit hours of operation at libraries, zoos, parks and other popular facilities." Cutting; vehicle replacement: The City has decreased the size of our fleet and combined vehicle usages between departments Santa Barbara, California, Considers Options For Possible 2011 Shortfall ' 1CMA News Briefing: September 10, 2009 "options ..include cutting vehicle replacement funding, reducing truck staffing from four fighters to three, or cutting several positions including a training captain" and "fire station 'brownouts,' essentially closing a station and referring calls...to other stations." City Administrator Jim Armstrong said discussion was not "intended to scare people" but instead "set the stage" for work that may need to be done. One council member also suggested that the city may need to be "doing something like a medicinal marijuana tax similar to the city of Oakland," or on "single - use grocery bags.,, Page 8 of 12 ICMA News Briefings: Best Practices Nationwide A Examples of What We Have Done or Doin Reducing or eliminating money spent on new vehicles: Employees no longer have assigned vehicles which has allowed the City to decrease the amount of vehicles. In early 2009 the City leased fuel efficient hybrids to save fuel. Will County, Illinois, Executive Asks For Voluntary Cuts To Cover $15 Million Revenue Drop. ICMA News Briefing: July 24, 2009 Will County, Illinois, Executive Larry Walsh "plans to ask department heads and elected officials to voluntarily cut costs in 2010 to help cover an anticipated $15 million revenue drop in taxes, fees and investment earnings over the next two years." He "said that no services will be cut to bridge the gap" and that "eliminating jobs would be a last resort." Instead, he "suggested much of the focus will be on reducing or eliminating money spent on consultants, conferences and new vehicles." Freezing employee wages: On a limited basis Aurora, Illinois, To Use Furloughs, Possible Wage Freeze To Avoid Layoffs. ICMA News Briefing: July 24, 2009 Aurora, Illinois Mayor Tom Weisner said that due to "a $4 million budget deficit,`Aurora�will require non -union employees to take five furlough days by the end of the year and 1.0 furlough days next year to avoid future layoffs." The, move"will save the city a combined`-$760,000." He also plans to "recommend freezing employee wages at 2009 levels to' save an additional. ` $500,000 next year," and the city is "looking into increasing employee health insurance contributions." Embracing technology: The City has computers in all the public safety vehicles, 109 Internet stations at the Library, webcasting of City Council meetings, and the new City website Monroe County, Michigan, Considering Options To Balance Budget. ICMA News Briefing: January 20, 2009 "Shrinking property values in Monroe County and continuing reductions in state and federal revenue have led county government leaders to begin brainstorming about a range of measures that might help make ends meet. The county is facing a $2 million shortfall in its 2009 budget and officials said the deficit might deepen in the days ahead." Options include early retirements for some county workers, "embracing technology to reduce staffing, going to four -day work weeks, delaying filling vacancies, cross -training personnel so they can work in different departments, reducing overtime, changing retiree health care funding, wage freezes and seeking furlough days." Cuts in supplies and materials: The City has a Purchasing Review Committee (PRC) to determine the need for supplies and equipment. Jackson, Mississippi, Cuts Budget By Freezing Vacant Positions. ICMA News Briefing: June 9, 2009 The Jackson City Council on Monday approved more than $2 million in budget cuts," which will. "span all departments. No workers will be fired but 10 vacant positions are frozen for the'rest:of` the fiscal year, which ends' Sept. 30." Yet "Acting Mayor Leslie Burl McLemore said city . services will continue without interruption," as "many of the cuts came from vacant positions as_ well as from supplies and materials." , Page 9 of 12 ICMA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin A Insurance changes: The City currently has a Benefits Committee that meets with the City's insurance broker to negotiate insurance changes. Sheboygan, Wisconsin, To Use Layoffs, Pay Freezes To Balance Budget. ICMA News Briefing: June 15, 2009 The City of Sheboygan and the Sheboygan Area School District, with 85 percent of operating expenses going to employee compensation, have turned to layoffs to meet multi -million -dollar budget deficits." And "that means more focus than ever on union negotiations." Yet AFSCME representative Sam Gieryn said that "the city shouldn't expect major concessions." He explained that "public employees have historically had consistent raises through boom and bust." In response, Sheboygan Mayor Bob Ryan said that "the money simply isn't there for more employee pay." So "the city will be asking for a pay freeze and insurance changes, hoping to adopt a less expensive package while keeping employee contributions at the current eiaht to 10 percent." Revenue -neutral user fees: A fee study was conducted that adjusted fees` to be more' in line with what it coststhe ' `City to provide services, but in July the fees have been rolled back to the original' fee schedule: Winchester, Virginia, To Consider Increase In Real Estate Tax Rate. ICMA News Briefing: February `' 26, 2009 "The city government hag proposed cutting $1 million in personnel costs to' help eliminate a projected $4 million budget deficit. City Manager, Brannon Godfrey told a City Council subcommittee Wednesday that significant' savings could be found by not filling vacant positions and by requiring employees to take days off without pay;" The city's budget committee is also looking at a "revenue -neutral real' estate tax rate. The tax rate is 68 cents per each $100 of a property's assessed value." Due to falling assessment values, "city leaders are considering a tax rate of 77 cents for FY 2010, which would net the same amount of revenue as the current rate," Council members have also "discussed implementinguser fees - most prominently, a fee for garbage collection," The Star says that"many other localities in Virginia charge a monthly fee for garbage collection, mostly around $20for residents Consolidating departments: Building, Planning, and Engineering were merged into one department for efficiency. Purchasing merged into the Finance Department. The CDC has merged into the City Manager's Office. Manassas, Virginia, Consolidates Divisions, Slashes Summer Programs To Save Money, ICMA News Briefing: December 18, 2008 Manassas City Council has approved "a citywide government reorganization that includes consolidating departments, cutting summer programs and slashing jobs." The city will pare down 12 divisions "into seven, and all summer programs through the Manassas Recreation and Parks Department, except the operation of Stonewall Park pool, will be eliminated." Overall, this plan is expected to save about "$2.5 million over the next year -and -a -half." The budget deficit for the same period is expected to be $5.4 million. By reorganizing, the city hopes to keep "property tax bills flat." Cutting. jobs: The City has eliminated the positions of Purchasing Agent, Plashing Director, Building Director, an'e severaICDC.management ositic /5, it/Ons Manassas, Virginia, Consolidates Divisions, Slashes Summer Programs To Save Money. ICMA News Briefing: December 18, 2008 Manassas City Council has approved "a citywide government reorganization that includes consolidating departments, cutting summer programs and slashing jobs." The city will pare down 12 divisions "into seven, and all summer programs through the; Manassas Recreation and Parks Department, except the operation of Stonewall Park pool, will be eliminated." Overall, this plan is expected' to save about million over the next year -and -a -half." The budget deficit for the same period is expected to be $5.4 million. By reorganizing, the city hopes'to keep "property tax bills flat." Page 10 of 12 ICMA News Briefings: Best Practices Nationwide A Examples of What We Have Done or Doin Energy efficient light bulbs: The City is retrofitting ballast and florescent light bulbs to decrease energy usage Helena, Montana, Reduces Energy Consumption 22 Percent Over Six Years. ICMA News Briefing: December 29, 2008 a "The Helena city government reduced its energy consumption by about 22% between 2001 and 2007. Carbon dioxide emissions fell by 18%...according to a report prepared by Helena officials and the city's Climate Change Task Force. Measures have included switching to energy efficient light bulbs, and updating temperature control systems." Updating temperature control systems: The City is updating our HVAC system for better temperature control throughout all City buildings, Helena, Montana, Reduces Energy Consumption 22 Percent Over Six Years. ICMA News Briefing: December 29, 2008 "The Helena city government reduced its energy consumption by about 22% between 2001 and 2007. Carbon dioxide emissions fell by 18%...according to a report prepared byHelena officials; and the city's Climate Change Task Force. Measures have included switching to energy' efficient light bulbs, and updating temperature control systems." Saving in cell phone contracts: Cell phone contracts are reviewed every other fiscal year. Vigo County, Indiana, To Attempt To Cut $2.6 Million Without Affecting Employees. ICMA News Briefing: March 17, 2009 "As the Vigo County Council looks for ways to trim more than $2.6 million from its budget next year, many county employees and supporters wanted to make one thing clear -- keep employees." Councilman Norm Loudermilk said, "Employees are your most important asset," County Commissioner Judith Anderson said, "I would not cut one day's pay, not one hour of pay from anyone working here." County Auditor Tim Seprodi said such moves were "the last option we will do." Council President Kathy Miller "said she agrees that cutting jobs is the last option." The council discussed possible savings related to cell phone contracts and vehicle usage. Changing retiree health care funding: The City unblended the retirees from the employee pool, which resulted in no increase to the City. Monroe County, Michigan, Considering Options To Balance Budget. ICMA News Briefing: January 20, 2009 "Shrinking property values in Monroe County and continuing reductions in state and federal revenue have led county government leaders to begin brainstorming about a range of measures that might help make ends meet The county is facing a $2 million shortfall in its 2009 budget and officials said the deficit might deepen in the days ahead." Options include early retirements for some county workers, "embracing technology to reduce staffing, going to four -day work weeks, delaying filling vacancies, cross -training personnel so they can work in different departments, reducing overtime, changing retiree health care funding, wage.freezes ;; and seeking furlough days." Cross -training personnel so they can work in different departments: All divisions in the Public Works Department are cross trained Monroe County, Michigan, Considering Options To Balance Budget. ICMA News Briefing: January 20, 2009 "Shrinking property values in Monroe County and continuing reductions in state and federal revenue have led county government leaders to begin brainstorming about a range of measures that might help make ends meet. The county is facing a $2 million shortfall in its 2009 budget and officials said the deficit might deepen in the days ahead." Options include early retirements for some county workers, "embracing technology to reduce staffing, going to four -day work weeks, delaying filling vacancies, cross -training personnel so they can work in different departments, reducing overtime, changing retiree health care funding, wage freezes and seeking furlough days." Page 11 of 12 ICMA News Briefings: Best Practices Nationwide Examples of What We Have Done or Doin A Reducing sick leave buybacks: Columbia, Missouri, ICMA News Columbia, Missouri, City Council approved its budget, a task that "has been particularly difficult Reduces City's unfunded liability by ` Balances Budget With Briefing: this year as the city faced a projected 2.9 percent drop in revenue." So "City Manager Bill allowing employees to buy back sick: Changes To Employee September Watkins faced the task of finding $2 million' in savings." Watkins and the council produced a leave. Benefits, Cuts To Service Agencies. 22, 2009 budget of "around $403'million -- down from the roughly $415 million budget approved last year." And two areas in particular' garnered the most discussion Monday night: changes to employee benefits and cuts in social services funding." The changes are expected to save "about $973,000.by restructuring overtime pay and reducing sick=leave buybacks." Regarding social services funding, Watkins had asked the council to decide for"level funding; a 2.5 percent cut; or a 5 percent cut," and the council chose to cut "roughly 2.5 percent." Restrictions on trainings: O'Fallon, Illinois, Places ICMA News O'Fallon, IL, "Restrictions on overtime pay, travel expenses and other expenditures have been Departments have limited their Limits On Overtime, Travel Briefing: put in place as the city continues its struggle with lost sales tax revenue due to the faltering training. And Large Expenses. December 31, 2008 economy." Mayor Gary Graham said, "At this time, no services to our residents will need to be cut." Instead the city has moved to require that "all non -emergency overtime hours must be reviewed and approved the department director. All travel and training will be reviewed and must receive city administrator approval." And "all new purchases above $6,000 must be reviewed by the finance director and city administrator." Meanwhile, "City Administrator Walter Denton said no layoffs are planned." Page 12 of 12 ICMA News Briefings: Best Practices Nationwide B Examples of What We Could Do Summary: City Comment Italicized Article Title Source Article Clip Hire retired police offlCetSi'The ' NationatCity%puce DeAartlnent has Senior Volunteer'PatroL'(durrently''no , former police officer are'on the patrol). Inverness, Illinois, Creates Police Department Of ` RetiredOfficers To Rave Money, ICMA News Briefing: May 1, 2009 Inverness Police Department, beginning today, made up of "veterans who; came out of retirementto= launch second careers in law enforcement." Police Chief Robert Haas, Jr. "retired as`a deputy chief' of the Palatine Police Department in January and started assembling his'new team after Invernes ;,' decided teend its`polieing relationship- with Barrington." That arrangement -"would have costrthe° village about 51.8 million" this year, so Haas was given a budget of $1:5-million`,'HD,spught'thpse eligiblefor°retirement instead of rookies" because "officers collegt ng pensions ere:more apt to,,take lower salaries." Administrative Employees no longer able to take home vehicles; Some police and fire employees are provided with take home vehicles based on contractual obligations, Maricopa County, Arizona, Reviewing Vehicle Fleet Costs ICMA News Briefing: February 12, 2009 "facing budget shortfalls and lower tax revenue due to the economy," the Maricopa County Board of Supervisors on authorized a review of "how much money it is costing for government workers, elected officials and judges to drive and take home county -owned vehicles." Brad Hushek, deputy budget director for the county government, said, "We want to make better use of our fleet and maximize savings." Third=party'car shanpg MI The = Ctty.sioes rigt partfoidatejn a Car sharingselvige• NeWYork Plans,To ' Tap Car -Sharing- Service For Municipal use. ICMA News Briefing for October 1,,, 2009 by next year,.the.c tyyplans. "tq:start using a third -party cr r-sharing service,similer to Zip cer tQ'`ba"'°tC, rides;,arpund town; instead of Flopping into an in-house Prius •or'TaF.jnj !reserved fora single employee, workers"will share a,Smaller pool of vehicles that can„be mere etf)cient$y'used f i tcit s" plan is ,:'modeled after programs'in Philadelphia and•.Washington" and "wIN,,r place.57 tiara"tr1 t ie' E Ry departmenl's.city owned fleet.with 25 vehicles'from'the car-sharing°service" For dayu e, and nights and weekends,.,the oars will be.available for use, by the public:" Since 2005,,Philadelphip has saved more than $600,0001n maintenance costs —by taking 140'vehlcles out ofjta fleet," wgile„ in Washington, where the program began last year, about 360 city-owned.cars,v were repleced.by71 shared vehicles - an 80 oercent drop."; Reducing or eliminating money spent on consultants: Currently under review Will County, Illinois, Executive Asks For Voluntary Cuts To Cover $15 Million Revenue Drop. ICMA News Briefing: July 24, 2009 Will County, Illinois, Executive Larry Walsh "plans to ask department heads and elected officials to voluntarily cut costs in 2010 to help cover an anticipated $15 million revenue drop in taxes, fees and investment earnings over the next two years." He "said that no services will be cut to bridge the gap" and that "eliminating jobs would be a last resort." Instead, he "suggested much of the focus will be on reducing or eliminating money spent on consultants. conferences and new vehicles." Cuts to annual memberships: Alt professional organizations that manager's and executives are involved with were reviewed by the City Manager's Office to,determine' direct and indirect costs -to the city as well as benefits to the city and individual Port St Lucie, Florida, Cutting Memberships In Effort To Save Money, ICMA News Briefing: September 15, 2009 City officials may -slice more of the.city's annual memberships from the budget as the bills,for-.dues arrive this month." It has "already cut its $1,000.membership with the Latin Chamber of .Commerce of the Treasure Coast," after "Mayor Patricia Christensen wrote to the chamber, saying the pitywas unable to renew its membership because of budget constraints, declining property values and:the, current state of the economy." In addition, "the council cut its membership and,travel to the U.C. "' Conference of Mayors, which was budgeted, for $15,000 each year." And "although all training and } travel expenses for City Manager Don Cooper have been removed, from next year's proposed ? budget, he will keep annual memberships required by including ICMA., Page 1 of 1 lt.ivirt iluvvJ LI Ic1111gn. UCJI a 14Lt1.CJ 11al1uiivviuC Examples of What We May Need Policy Procedure or Direction Summary: City Comment Italicized Turning off street lights: The City has not turned off streetlights, however we are looking at retrofitting existing streetlights for energy savings and increased efficiency. Article Title Cities Tuming Off Some Streetlights To Save Money. Source ICMA News Briefing: August 27, 2009 Article Clip Santa Rosa, CA, is removing "6,000 of the city's 15,000 streetlights" while "3,000 will be placed on a timer that shuts lights off from midnight to 5:30 a.m. Savings; $400,000 a year." Other cities noted for reducing lights are North Andover, MA; Dennis, MA; Montgomery, PA; and South Portland, ME; while "in Minnesota, cities and towns are starting to charge 'streetlight fees' to cover the cost." One expert is quoted saying that"there's little evidence to support the belief that streetlights reduce crime," but "lighting does reduce traffic accidents, especially at intersections." Energy conservation policy: The City has not developed a formal policy, however Honeywell has conducted an analysis of the City's energy use to develop ways to lower costs for overall consumption throughout City facilities, street medians, and parks. Rapid City. South Dakota, Revisits Energy Conservation Policy In Effort To Save Money. ICMA News Briefing: August 28, 2009 An energy conservation policy that was never fully implemented could save Rapid City $260,000 a year in energy costs," according to the recently re-established Energy Policy Committee. Alderman Bill Waugh described the policy as "common sense. When you're not in a building the lights aren't on. When you're not in a building, the heat's not on." The policy "set a number of guidelines intended to cut down on energy use." but "little has been done to ensure the policy's implementation" in 2003. "The original intent was to appoint a City Energy Manager to oversee the program, with each department appointing its own Energy Officer to work with the department head to implement the guidelines." Fee increases for garbage: EDCO has not increased their fees. Milwaukee Mayor Seeks Fee Increases To Avoid Raising Property Taxes. ICMA News Briefing: July 20, 2009 "Milwaukee Mayor Tom Barrett is seeking up to $14 million in fee increases, which would boost what residents pay for garbage collection, snow removal, tree trimming and parking, the city's budget director says." Yet "Aldermen are wary of the fee boosts, which would continue a trend of shifting more municipal costs onto user fees to hold down property tax increases." The alternative is said to be "slashing services, even more than the $40 million -plus in cuts already expected in the 2010 budget ." Also proposed is an increase in water rates "partly to cover capital upgrades and partly to generate profits that can help pay for other city operations." 3 cent local fuel tax: The City does not have a fuel tax, however we do have a Gas Tax Fund where the City receives a share of revenues derived from State taxes on gasoline. Central Point, Oregon, Abandons Local Fuel Tax Vote After Likely State Increase. ICMA News Briefing: June 29, 2009 With a 6-cent per gallon state gas tax hike on the horizon, Central Point City Council members on Thursday decided not to ask voters for a 3-cent local fuel tax in September." The state tax increase, which must still be signed by the governor, would take place "in January 2011, or earlier if the state has two consecutive quarters of 2 percent or more employment growth." The local tax increase, which had been "tabled by city officials due to opposition by local business owners and trucking industry supporters...could have yielded between $450,000 and $650,000, allowing city officials to do away with an existing $5 per month street utility fee." Councilwoman Kay Harrison "voiced frustration that the state increase would yield fewer dollars for the city, cost motorists more and keep the $5 monthly fee in place." However, officials noted, "the city could reconsider a local hike if voters challenge the state tax increase." Page 1 of 4 ICMA News Briefings: Best Practices Nationwide Examples of What We May Need Policy Procedure or Direction c Canceling fireworks (instead cities are donating money to the show): The fireworks show is hosted by the Lion's Club. The City provides funding and and in- kind services (Police, Fire, Public' Works) as a City co- sponsored event. Tight Budgets Squash More July 4 Celebrations. ICMA News Briefing: June 18, 2009 "Communities across the country are either canceling their annual fireworks displays, scaling them back or scrambling to find alternative. sponsors." Cancelled are celebrations in "Monterey, Calif.; Coral Gables, Fla.; Lowell,Mass.; Elyria, Ohio; and Colorado Springs, Colo.," because "local officials say they can't justify the expense of flashy pyrotechnics while laying off city employees, cutting services and raising taxes." In addition to the cost of fireworks, which "can cost as little as,$15,000," most cities face costs for police and fire fighting help. Although some cities are accepting commercial sponsorships, "the city of Montebello, Calif.," is "instead...donating $40,000, the cost of the show, to area nonprofits that distribute food." City Administrator Richard Torres said the gesture "will be a lot more meaningful and a lot more aDDreciated." Response fee for vehicle crashes and fires: The National City does not currently have a fee; but it is under review. North County Fire Department charges the insurance company of at fault drivers in an vehicle accident. Tinley Park, Illinois, Considers Response Fee For Vehicle Crashes And Fires. ICMA News Briefing: May 1, 2009 "Tinley Park is considering charging for responding to motor vehicle crashes and fires, particularly when non-residents are involved." Already there are "a handful of areas across the country charging the fees." Fire Chief Ken Dunn said that "the Fire Department could recoup some costs through the fees, especially when non-residents are involved," and "the Fire Department responded to 300 motor vehicle crashes and 29 vehicle fires last year." Unpaid holidays for employees: ; Labor negotiations determine concessions received from employees. Berkeley County, South Carolina, To Mandate Unpaid Holidays To Address Budget Shortfall. ICMA News Briefing: December 9, 2008 - Berkeley County Council approved a move to shut the county government "down for four additional days" in 2009 "to meet a projected" $450,000 "budget shortfall" this fiscal year due to a "drop in building permits and deed filing fees, combined with a $576,000 cut in state revenue sharing." According to Supervisor Dan Davis, "shutting down government offices and mandating the unpaid holidays will result in a savings of about $400,000 to $500,000." While "county employees won't be paid for three -of the days...the fourth will be, a paid holiday." Berkeley County Finance Director Kace Smith explained that the "first office closing, which will be a paid holiday for employees, will take place Jan. 2,'Sand the "unpaid holidays will correspond with the President's Day, Easter, and Memorial Day holidays." Decreasing social services: City departments have provided 5%,10%, and 15% proposed budget cuts, However, social .services are administered in large part by the County. Columbia, Missouri, Balances Budget With Changes To Employee Benefits, Cuts To Service Agencies. ICMA News Briefing: Septembe r 22, 2009 Columbia, Missouri, City Council approved its budget, a task that "has been particularly difficult this year as the city faced a projected 2.9 percent drop in revenue." So "City Manager Bill Watkins faced the task of finding $2 million in savings." Watkins and the council produced a budget of "around $403 million -- down from the roughly $415 million budget approved last year." And "two areas in particular garnered the most discussion Monday night: changes to employee benefits and cuts in social services funding." The changes are expected to save "about $973,000...by restructuring overtime pay and reducing sick -leave buybacks." Regarding social services funding, Watkins had asked the council to decide for "level funding; a 2.5 percent cut; or a 5 percent cut," and the council chose to cut "roughly 2.5 percent." Dann 9 of A i� iviri 1\GWJ 1G1111gb: nest ClilclICCJ 1VauuilWlUC L Examples of What We May Need Policy Procedure or Direction Ineligible dependents benefit audit: The City has not completed an ineligible dependents audit. More Employers Said To Be Auditing For Ineligible Dependents. ICMA News Briefing: October 13, 2009 ` a "growing number" of employers are "cracking .down on workers who enroll ex -spouses, over -age' children, grandchildren and others not entitled to coverage under their health plan." Asking married policyholders to "show their marriage license is a routine part of the audit, although some employers also ask to, see a joint tax return or utility bill to be sure that a couple hasn't divorced. Birth certificates are also demanded to ensure a child hasn't aged out of the plan, although additional proof, such as a tuition receipt, may be required when age limits are extended for full-time students." Many state and local government agencies "also are auditing dependents, although' the federal government is not." Eliminating pay for Planning Commissioners - volunteer like other commissioners do not get paid: The City currently pays Planning Commissioners. Plan Commission In Batavia, Illinois, May Become Volunteer Body. ICMA News Briefing for October 7. 2009 city aldermen are considering taking away the $10-per-meeting pay for members of the Batavia Plan Commission "as the city explores more ways to save money during the sluggish economy." The commission typically meets twice a month. City staff made the recommendation to cut their pay. City Administrator Bill McGrath said, "This will put them on the same par as the Historic Preservation Commission and other volunteer bodies, though we have to acknowledge the volume of work and time spent." The commission reviews development proposals and revisions to the city's zoning ordinance. Eliminate programs: Under review Arlington County, Virginia, To Modestly Cut Budgets. ICMA News Briefing: February 24, 2009 "Arlington County Manager Ron Carlee has proposed trimming government spending by nearly $1,2 million in the next fiscal year, a relatively modest rollback as otherjurisdictions face severe shortfalls." But the cut "stings some in a community where residents have become accustomed to plentiful services that expanded foryears along with soaring home values. About 100 county staff: positions, 40 of which are now filled, would be eliminated in the $929.5 million spending plan. Other cuts would shorten library hours, eliminate an "anti -mosquito program," and cut "staffing for child-care center inspections." Medicinal marijuana: The City has a moratorium in affect for medical marijuana dispensaries. Santa Barbara, California, Considers Options For Possible 2011 Shortfall. ICMA News Briefing: Septembe r 10, 2009 One council member also suggested that the city may need to be "doing something like a medicinal marijuana tax similar to the city of Oakland," or on "single -use grocery bags." Raise fines for overdue library books: The Library fee may be reviewed. Cities Face Declining Revenues. ICMA News Briefing; Septembe r 1, 2009 "45% --[of cities] raised fees on everything from garbage collection to overdue library books." ... "limit hours of operation at libraries, zoos, parks and other popular facilities." Page 3 of 4 ICMA News Briefings: Best Practices Nationwide Examples of What We May Need Policy Procedure or Direction c Fee increases for tree trimming: Milwaukee Mayor ICMA "Milwaukee Mayor Tom Barrett is seeking up to $14 million in fee increases, which would boost what The City does not currently Seeks Fee Increases News residents pay for garbage collection, snow removal, tree trimming and parking, the city's budget director charge for tree trimming. To Avoid Raising Briefing: says." Yet "Aldermen are wary of the fee boosts, which would continue a trend of shifting more municipal Property Taxes. July 20, 2009 costs onto user fees to hold down property tax increases." The alternative is said to be "slashing services even more than the $40 million -plus in cuts already expected in the 2010 budget he will unveil Sept. 24, budget officials say." 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