General Fund Fiscal Year 2008-09 Revenue Shortfall Recovery Plan City of Key West General Fund Fiscal Year 2008-09 Revenue Shortfall Recovery Plan March 10, 2009

City of Key West Revenue Shortfall Recovery Plan 1ST QTR REVENUE ACTUALS PROJECTED FOR BALANCE OF FY NOMINAL NEW REVENUE GAINS ELIMINATE FIVE (5) FILLED POSITIONS IMMEDIATELY TWO (2) BUILDING INSPECTORS ONE (1) CODE OFFICER ONE (1) PARK RANGER ONE (1) FMT PROJECTS COORDINATOR FREEZE ONE (1) VACANT POSITION SENIOR PLANNER III FAVORABLE FUEL PRICES (50% increase for balance of FY) STRICT OVERTIME POLICY ELIMINATE RESERVE FOR FY 08-09 CITY WIDE SALARY INCREASES MISCELLANEOUS EXPENDITURE ELIMINATIONS FOR THIS FY

City of Key West Revenue Shortfall Recovery Plan FIVE (5) PERCENT REVENUE SHORTFALL FIVE PERCENT SHORTFALL OF “EXPOSED” REVENUES ($1.675M) REMOVES INTERFUND TRANSFERS NOMINAL NEW REVENUE GAINS ELIMINATE 20 FILLED POSITIONS IMMEDIATELY 5 FROM $1.275M REDUCTION PLAN, PLUS; 5 POLICE DEPARTMENT 3 FIRE DEPARTMENT 7 PUBLIC WORKS / COMMUNITY SERVICES FREEZE THREE (3) VACANT POSITIONS SENIOR PLANNER III & 2 MAINTENANCE WORKERS FAVORABLE FUEL PRICES (50% increase for balance of FY) STRICT OVERTIME POLICY ELIMINATE RESERVE FOR FY 08-09 CITY WIDE SALARY INCREASES MISCELLANEOUS EXPENDITURE ELIMINATIONS FOR THIS FY

City of Key West Revenue Shortfall Recovery Plan EIGHT (8) PERCENT REVENUE SHORTFALL EIGHT PERCENT SHORTFALL OF “EXPOSED” REVENUES ($2.685M) REMOVES INTERFUND TRANSFERS NOMINAL NEW REVENUE GAINS ELIMINATE 40 FILLED POSITIONS IMMEDIATELY 20 FROM FIVE (5) PERCENT REDUCTION PLAN, PLUS; 10 POLICE DEPARTMENT 8 FIRE DEPARTMENT 1 PUBLIC WORKS / COMMUNITY SERVICES 1 BUILDING INSPECTOR FREEZE THREE (6) VACANT POSITIONS SENIOR PLANNER III & (4) MAINTENANCE & PURCHASING MANAGER FAVORABLE FUEL PRICES (50% increase for balance of FY) STRICT OVERTIME POLICY CLOSE COMMUNITY POOL FOR SIX (6) MONTHS ELIMINATE RESERVE FOR FY 08-09 CITY WIDE SALARY INCREASES MISCELLANEOUS EXPENDITURE ELIMINATIONS FOR THIS FY

City of Key West Revenue Shortfall Recovery Plan General Fund Cash Reserves FYE 2008 FYE 2008 Unadjusted $14.1M Receivables - Cruiseships $ .287M Receivables - Grant / State $ .357M Wages Payable ($.657M) Accts. Payable ($.685M) FEMA Payable ($.473M) Underfunded Insurance Fund ($.300M) – 75% Probability FYE 2008 Adjusted $12.63M Approx. 120 Days @ $105,000 Per Day

City of Key West Revenue Shortfall Recovery Plan RECOMMENDATION ACKNOWLEDGE FIVE (5) PERCENT SHORTFALL APPROX. $1,675,000 REVENUE SHORTFALL IMPLEMENT “1ST QUARTER ACTUALS” PLAN $1,275,000 SHORTFALL BALANCE WITH OPERATING CASH RESERVES APPROX. 4-5 DAYS REVIEW AT END OF 2ND QUARTER