1 / 23

2008-09 Budget Strategy

2008-09 Budget Strategy. Presented by Mayor Don Ness To the Duluth City Council June 9, 2008. Today’s Presentation. Introduction – Mayor Ness Sample list of proposed budget strategies – Mayor Ness Budget principles – Lisa Potswald Operational restructuring – Lisa Potswald

ronia
Télécharger la présentation

2008-09 Budget Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2008-09 Budget Strategy Presented by Mayor Don Ness To the Duluth City Council June 9, 2008

  2. Today’s Presentation • Introduction – Mayor Ness • Sample list of proposed budget strategies – Mayor Ness • Budget principles – Lisa Potswald • Operational restructuring – Lisa Potswald • Income statements – Mayor Ness • What are our next steps – Mayor Ness

  3. Proposed Budget Strategies • Eliminate or hold open 33 positions • Close Human Rights Office • Eliminate DEDA general fund subsidy • Eliminate Office of Sustainability • Turn over Zoo operations to Zoological Society • Close Fire hall • Eliminate Engine 3 Fire Rig • Combine Parks & Library Departments • Reduce Aquarium Subsidy by $100k

  4. Proposed Budget Strategies -Continued • Close Washington Pool • Eliminate City Run Adult Leagues • Reduce fuel consumption by 15% • Reduce size of rolling stock fleet • CD, WD, PACT all pay rent & expenses • Eliminate Fun Wagon service – sell asset • Close 1/3 of Community / Recreation Buildings • HIF funds used to support SSO Issue

  5. Proposed Budget Strategies -Continued • Eliminate support for Sister Cities, Grandmas Marathon, Beargrease and Inline Marathon • Transition to pay as you go for capital equipment • Transfer responsibility for Senior Nutrition Program • Implement Administrative Fine System • Eliminate Staff support for many City Boards and Commissions • Reform Civil Service Process • Retiree Health Care / Medicare

  6. Budget Principles

  7. Principle #1: Fiscal Discipline

  8. Principle #2: Effective Resource Allocation

  9. Principle #3: Efficiency

  10. Operational Restructuring

  11. Restructuring and Reform • City government can no longer afford to provide services that could effectively be accomplished by other organizations/individuals. • The goal today is to present a plan for restructuring and controlling costs, not just listing cuts • The next step will be to develop comprehensive plans for implementing change.

  12. Prerequisites for Restructuring

  13. Prerequisites continued

  14. Prerequisites continued

  15. Income Statements

  16. Income Statement - Reserve • 2008 Beginning Fund Balance $1,086,000 • Current Year Changes • Sale of Steam District II $2,500,000 • Other one time revenues 500,000 • 2008 Estimated Ending Balance $4,086,000 * * Meets 5% minimum fund balance target; long term goal is to have 7% to 10% in the General Fund undesignated, unreserved fund balance.

  17. Income Statement – Operational Deficit • 2008 General Fund Operational Deficit $4,420,000* • Recommended Budget Strategies • Positions held Vacant $1,403,000 • Impact Neutral Revenue $363,000 • Revenue Increases $330,000 • Eliminated Subsidies $100,000 • Eliminated Outside Agency Support $680,000 • Efficiencies/Managerial Changes $187,000 • Eliminated Services/Activities $435,000 Total of Strategies $3,498,000 • Current 2008 Operational Deficit $(922,000) *Includes Fund Balance Restoration of $1 Million

  18. 2008 Total General Fund Impact • Restore Reserve $3,000,000 • Operational Strategies $3,498,000 • Remaining Deficit $ 922,000 • Total Recovery by Year’s End $7,420,000

  19. Income Statement – 2009 Initial • 2009 General Fund Operational Deficit $8,360,000 2008 Permanent Fixes $3,379,000 Current 2009 Operating Deficit $4,981,000 • Recommended Budget Strategies • Neutral Revenue Efficiencies $750,000 • Revenue Increases $750,000 • Recovery of Cost for Services $200,000 • Eliminated Outside Agency Support $300,000 • Efficiencies/Managerial Changes $2,000,000 • Eliminated Services/Activities $1,000,000 Total of Strategies $5,000,000

  20. Additional Strategies Lists developed from ideas provided by the administration, staff, union representatives and the public • Expense reduction/revenue enhancement list • Eliminated services/task list • Operational efficiencies/managerial improvements list

  21. Next Steps

  22. Next Steps • Budget resolution will be presented on June 19 • Develop and implement plans regarding each of the recommendations • Work with community groups to clarify implications for 2008 and beyond • Educate the public regarding service reductions and process changes

  23. Questions?

More Related