CC 2020-04-28_11b Short-term Budget Balancing Strategies_PowerPoint
Strategies to Address the Projected FY 2019-20 Budget Shortfall
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Forecasted Revenue Shortfall FY 2019-20
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Short Term Budget Balancing Strategies
State has not provided a timeline for lifting the shelter at home order
COVID-19 impact in current year, but long-term economic impact not effected
Short-term versus long-term budget balancing strategies
Choose to focus on short-term balancing strategies
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Implement a Hiring Chill
Staff is recommending implementing a Hiring Chill
Parameters of a Hiring Chill
Currently four (4) vacant permanent positions
Savings in the final quarter of $89,600
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Implement a Hiring Chill
Recreation Services’ staff impacted by shelter at home order
Currently 23 part-time recreation services’ staff being furloughed
Some of these part-time staff have filed for unemployment
City is self-funded and pays unemployment benefits at two-thirds of regular salary
Estimated savings in final quarter $35,200
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Impact of Hiring Chill
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Implement a Travel Chill
Staff is recommending implementing a Travel Chill
Parameters of a Travel Chill
Unspent travel/conference/training costs for first 9 months is $32,000
Assume 80% of travel and training costs can be postponed or eliminated
Estimated Travel Chill savings equals $25,600
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Review of Operating Budgets
Fiscal staff worked with Department Heads to identify savings
Operations identified unspent costs, postponed non critical spending, or eliminated spending altogether
Total amount identified as savings $294,000
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Impact of Operational Review
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Other Revenue Options
FY 2019-20 Adjusted Budget assumed 9% of Five Cities Fire Authority (FCFA) funding would be through the Local Sales Tax Fund
FY 2019-20 Forecast assumes the percentage of funding through the Local Sales Tax Fund increases to 20%
Increased funding from Local Sales Tax Fund reduces General Fund requirements by $286,000 in current fiscal year
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Use of Contingency Reserves
City’s Fiscal Policy recommends a 5% Contingency Reserve
Use of Contingency Reserve for unexpected or unforeseen losses
One percent (1%) of Contingency Reserve equals approximately $207,000
Recommendation is to reduce Contingency Reserve in FY 2019-20 by 1% to address budget gap
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Summary of Identified Savings
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Alternative Short-Term Balancing Strategies
Voluntary Time Off (VTO)
Mandatory Time Off (MTO)
COVID-19 Stimulus Money
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Comments/Questions
Public Comment:
Call: 1-833-493-5844
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