HomeMy WebLinkAbout19F - CITY MANAGER BUDGET UPDATEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
OCTOBER 3, 2011
TITLE:
CITY MANAGER BUDGET
STABILIZATION PLAN WEEKLY
UPDATE
CITY MANAGER
RECOMMENDED ACTION
Receive and file.
DISCUSSION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1' Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
On September 19, 2011 City staff presented to the Council a Budget Stabilization Plan that
included a 4-prong approach to address the City's structural budget deficit. Like many cities,
Santa Ana has been affected by the national recession, which affected all of the cities' major
revenue sources used to fund mission-critical services. Further, the State of California revenue
take-aways and the dramatic increase in PERS rates have negatively impacted Santa Ana's
current budget.
In an effort to provide the Council with weekly action steps the City is taking to either reduce
expenditures or increase revenues, I offer you the following updates associated with the
4-prong approach:
Negotiated Compensation Reductions
• All three major labor groups are currently in discussions with the City Labor Negotiator.
Outsourcing
• 16 areas identified in the Management Partners Report are being evaluated. Three RFPs
are ready for release next week. Appropriate meet and confer meetings with labor groups
have occurred. Additional opportunities to reduce cost through outsourcing are being
explored.
• Staff reviewed the Bowers contract in full detail. The contract does not expire for
approximately 37 more years and commits the City to operating expenses in the
approximate amount of $1.4 million per year. Staff will meet with the Bowers President to
seek a reduction to the City's obligation. We will also discuss the use of the Kidseum and
a 3rd Street City-owned property currently used for storage by Bowers.
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City Manager's Budget Stabilization Plan Weekly Update
October 3, 2011
Page 2
Restructuring/Service Reductions
• 1 am completing my one-on-one meetings with department heads to review their
operations and mission-critical services. Service reductions and restructuring proposals by
departments will be gathered by October 1, 2011.
Revenue Enhancements
• City is tracking closely the League of California Cities lawsuit against the State for taking
the VLF revenue in the last budget. This was a $1.2 million hit to Santa Ana.
• A community survey will soon be released to gather information on a possible revenue
enhancement.
• City is investigating uniform application of sanitation fee to hotels, which could generate
approximately $200,000-$300,000.
• Paramedic subscription fee program has been re-marketed to capture lost revenues.
Expenditure Controls
• All non-mission critical consumable goods and capital purchases have been eliminated or
limited.
• City is looking to recover costs/expenses from the current Civic Center Authority contract
with our government partners.
• The City's financial consultant, Dave Millican, was at City Hall three days this past week
reviewing the City's financial systems and evaluating the City's revenue and expenditure
projections.
Public Communications
• Article on City's budget deficit is on front page of the Web with links to the Management
Partners Report and Budget Stabilization Plan.
• I will be attending six community meetings in the next month to update residents on the
status of the budget.
• Another newsletter to all employees will be sent out thanking employees for their budget
suggestions on the employee portal.
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