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Home My WebLink About03/24/2009 Council Presentation FY2009-2010 Budget~~ TOWN OF MARANA ~~ FY 2009-2010 BUDGET PLANNING STUDY SESSION _ x-- ,~ ~~ „y '~a~,-,,. err. W: 4~ ~-~.. i~~f' - ,r 1~"' Jr ~p Q~F ~~E ~ ~-~ lea ~~ r, r:f ilk ~~~ : ..j .. ~ ' ~ ~~ e .rte ~' . n ~ ..: ~~"_ ,+ ~~ ~`~ ~., ~ '~.~' r~Y '~~ s~ ~ - ,~, ~ ~' t~~ r ~~ r r, _t ~~'t-, q~ ! ~~ 41 ~•yA .cL k n ' ~ A I; :'~ ?' ~ ##k~,~ i MARCH 24, 2009 .Y Budget Planning Study Session Overview I. Budget Goals II. 2010 Revenue Outlook III. Budget Modification Options IV. Policy Direction FY 2010 Budget Goals Maintain Critical Operations - Public Safety - Infrastructure • Minimize Impact to Personnel • Position Town for Quick Economic Recovery • Align Decisions with Strategic Plan Strategic Plan "Marana is the centerpiece of the Sonoran Desert, where fun and progress meet. " ~~~.~N~ oMI'riiE~E L+ Z,.~ iii ':. A~. ~~~. l J Iry4 µ c ' ,. ~ ~E~ •~;,~.,, 7a~ __ ~R~~°~± ° ~~a:. f !~' ~ y ~~ r~ ~_ ~ }MY` tq' T .~' a ? _. R:~ .=~;' ,. ~- ~ .. ,,GG~~ ,s a ~. rf ati:gl. ~_ ~~~~. -~ , ` 2010 Revenue Outlook Preliminary Budget Budget Change Change 2009 2010 2009 2010 $ % Adjustments Remaining General Fund $34.5M $28.5M $-6.OM -17% $3.6M $2.4M Trans Fund $8.6M $5.7M $-2.9M -34% $2.3M $0.4M HURF $2.3M $1.8M $-0.5M -22% $0.5M $0 •Increases in fixed costs, employee benefits, etc. will increase the shortfall. •Remaining shortfall amounts do not reflect any Level 1-3 adjustments discussed tonight. •These amounts may change significantly due to State budget impacts. Budget Modification Options Operational Reductions & Cost Avoidance LEVEL 2 LEAST __ MOST IMPACT ON PERSONNEL & SERVICES LEVEL 3 LEVEL 1 Level 1: Increased Revenue & Cost Savings • Fee Schedule Adjustments • Bed Tax Rate Adjustment • Electricity Savings • Vacant Position Savings • Federal Stimulus Revenue • Transaction Privilege Tax (TPT) Enforcement and Compliance • Realign Expenditures ~v~t~ r ,i ~fF' ~~r~d.in W,~4 < - ~1~ ~ S3Y~'Y: f/ `Tim ~ %_ ~ R~~iY~~tV ~~'d VII~;'~~l~~y~~ '~f "5 ~' ~ ,mow "ter i ~~ y ~ ~ i .~ «. ~ .. ± Level 1 Impact on Budget Goals Maintain Critical Operations Minimize Personnel Impacts Position Town for Quick Economic Recovery Align Decisions with Strateg~~c ~~~. Level 2: Operational Reductions & Cost Avoidance • Additional Reductions in Travel & Training • Suspend Vehicle Allowances • Eliminate Non-Essential Memberships • Suspend Salary Increases Operational Reduce hours of some services e. ( g. pool) Reductions & Scale-Back Special Events (Founders' Day, Star-Spangled Spectacular, Fall COSt Heritage Festival Hol' iday Tree Lighting) 14VOIdarlCe Increase Em to p yee Share of Benefits Costs • Absorb Outside Contract Work with Existing Staff • Non-Personnel Budget Savings Level 2 Impact on Budget Goals Maintain Critical Operations Minimize Personnel Impacts rfj Position Town for Quick Economic ~~ Recovery Align Decisions with Strategic Plan Level 3: Elimination or Reduction of Services & Personnel • Employee Pay Reductions • Eliminate Services or Programs • Voluntary or Involuntary Reduction in Operating Hours/Employee Furlough • Employees Pay Full Cost of Benefits • Use Portion of Transportation Sales Tax for General Fund • Use Portion of Reserves ("Rainy Day" Fund) • Organizational Restructuring -Achieve efficiencies in management ..structure Level 3 Tools: • Worker Recessr~n Assignment F~rogram (WRAP): • Early Retirement Incentive jERI) • Employee Red~.tctit~n Programs ~E) Level 3 Impact on Budget Goals Maintain Critical Operations Minimize Personnel Impacts Position Town for Quick Economic Recovery Level 3 Tools: Worker Recession Assignment Program (WRAP) • Mitigates layoff; extends employment • Applies to classified employees only • Voluntary or directed reassignment to areas where workload exists, with appropriate qualifications • May impact pay if assigned to lower-level work ~.: Level 3 Tools: Early Retirement Incentive (ERI) • Limited eligibility • One-time percentage payout of sick leave • Health benefits paid for defined time period • Potential severance pay x ~~,; ~. Level 3 Tools: Employee Reduction Program (ERP) • Voluntary or involuntary reduction in force (layoff) • One-time percentage payout of sick leave • COBRA payment assistance Level 3 Tools: Employee Choice -Reduction in Pay • Identify monetary amount of reduction • Provide employees with "menu of options" to achieve necessary cost reduction • Options include: -Furlough days or equivalent reduction in salary -Early Retirement Incentive (ERI) -Employees pay larger share of benefits costs -Voluntary reduction in hours Summary of Impacts •Minor impact on personnel and services •Certain existing revenue sources increased, explore other new potential revenue sources •Moderate impact on personnel and services LEVEL 2 -;. >~ . . „' I ~ :.~ •Significant changes to Town's fiscal structure and policies •Major impact on personnel and services •Longer time needed to return to prior service levels Next Steps 1. Prioritize Level 3 options 2. Authorization to develop Level 3 tools 3. Preparation of FY 2010 budget based on Level 1 and Level 2 options - If required, Level 3 options may be used FY 2010 Budget Goals • Maintain Critical Operations - Public Safety - Infrastructure • Minimize Impact to Personnel • Position Town for Quick Economic Recovery • Align Decisions with Strategic Plan BUDGET OPTIONS LEVELS 1, 2 AND 3 LEVEL l: G12EEN • Fee Schedule Adjustments • Bed Tax Rate Adjustment • Electricity Savings • Vacant Position Savings • Federal Stimulus Revenue • Transaction Privilege Tax (TPT) Enforcement & Compliance • Realign Expenditures with Funding • Renegotiate/Re-Bid Contracts LEVEL 2: • Additional Reductions in Travel/Training • Suspend Vehicle Allowances • Eliminate Non-Essential Memberships • Suspend Salary Increases • Reduce Hours of Some Services • Scale-Back Special Events • Increase Employee Share of Benefits Costs • ~~Absorb Outside Contract Work with Existing Staff • Non-Personnel Budget Savings LEVEL 3: t~ ~ ~ - • Employee Pay Reductions • Eliminate Services or Programs • Voluntary or Involuntary Reduction in Operating Hours/Employee Furlough • Employees Pay Full Cost of Benefits • Use Portion of Transportation Sales Tax for General Fund • Use Portion of Reserves ("Rainy Day" Fund) • Organizational Restructuring