09/08/2009 Council Packet (2) - Laserfiche WebLink

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Staff Reductions: Building Inspections 1.5 FTE $106,220 Administration 1.0 FTE 53,940 Community Devel. 0.5 FTE 26,970 Finance/Utilities 0.5 FTE 27,260 Police 0.5 FTE 26,909 Streets/Parks 1.0 FTE Included in Budget Discontinue JPA w/ Centennial Schools 50,000 Renegotiate w/ Police unions 60,000 Reduce Engineering 35,000 Furloughs — 2 weeks Staff, 3 weeks Directors 211,500 Total Adjustments Total Adjustments needed to Balance Adjustments over needed to Balance Non -Public Safety Staffing Levels Reduced to Pre -2000 $597,799 554,623 $ 43,176 Cutting 5 FTE staff positions will cause adjustments to be made in most service delivery areas, requiring the cross training of personnel to allow for staff backup at minimal levels. Should the retirement incentive plan approved by the City Council prove to be effective, it may have an effect on the number of positions proposed to be reduced and on the cost of the reductions, i.e. unemployment payments. While the level of adjustments is about $43,000 more than required, it must be noted that some use of fund balance is required to balance the budget. If the use of fund balance to balance the budget is not acceptable, additional staff reductions would be necessary. In addition, we note that the budget includes no contingency. Should there be any need for additional unforeseen spending in 2010 it is assumed that the Council would use fund balance as a last resort to fund these needs. Possible Effects on Centennial Fire District It was also suggested that the possibility of reducing or eliminating Centennial Fire District capital contribution would save the city up to $69,600 in 2010. While this amount is not included in the city's budget, it would reduce the necessary debt issuance needed to purchase capital equipment, and reduce the burden on future levies. A renegotiation of the contribution formula in the JPA may be to the city's advantage in future years. Future Impacts It should be noted that while the City Council may feel the need to hold level or reduce the city's tax rate in troubled economic times, the cost of doing so will certainly have an