April 28, 2009 City of Glendale - Finance Department 1 Budget Study Session 1 Fiscal Year April 28, 2009

City of Glendale - Finance Department Budget Study Session 1 Agenda   Overview of Adoption   Update of Budget Status   Budget Estimates   Strategies to Balance   Study Session Schedule   Feedback/Questions/Comments

April 28, 2009City of Glendale - Finance Department3 Surplus/ Resources Expenditures (Shortfall) Initial Budget $164,569,000 $174,537,000 ($9,968,000) Revised Revenues 2,074,000 2,074,000 Department Reductions (5,905,000) 5,905,000 Other Vacancy Reductions (754,000) 754,000 Changes in Transfers 1,517,000 (650,000) 2,167,000 Citywide Reductions (432,000) 432,000 Unavoidable Expenses 1,316,000 (1,316,000) Adopted Budget $168,160,000 $168,112,000 $ 48,000 General Fund - Overview Budget Adoption Recap

April 28, 2009City of Glendale - Finance Department4 General Fund – Overview Actions to Adopt Budget   Elimination of 43 vacant & 2 filled positions   Elimination of various programs/services   SRO Middle Schools {3 sworn positions}   Portion of COPPS {4 sworn positions}   Downsized to One 3-person Engine in Fire {3 sworn positions}   Reduction in Recreation Program hours   Reduction in Library services   Various Maintenance and Operations reduced or eliminated

April 28, 2009City of Glendale - Finance Department5 General Fund - Update Budget Status After Budget adoption, the economy begins to shift drastically…   Credit/Banking crisis hits   Auto sales drop up to 50%   Construction related spending slows down   Retail outlets close   Unemployment rises   General consumer spending slumps

April 28, 2009City of Glendale - Finance Department6 General Fund - Update Budget Status Sales Tax – How did Glendale compare?   Glendale’s October thru December 2008 sales was 11.7% lower than the same quarter one year ago. Compared to… Burbank –  11.2%Cerritos –  16.8% Pasadena –  13.6%El Monte –  32.1% Los Angeles –  12.1%Long Beach –  9.6%   Adjusted for aberrations, sales tax revenues was down…   13.4% for all of LA County   16.0% for all of San Bernardino County   22.3% for all of Ventura County   14.2% for all of Southern California

April 28, 2009City of Glendale - Finance Department7 General Fund – Update of Revised Resource Projections   Sales Tax$(3,032,000)   Occupancy Tax(100,000)   Other Taxes(300,000)   Licenses & Permits(1,613,000)   Motor Vehicle in Lieu(600,000)   Charges for Services(1,250,000)   Intergovernmental Revenues(25,000)   Fines & Forfeitures(340,000)   Use of Money & Property(869,000) ) Reduction of Estimated Resources$(8,129,000)

April 28, 2009City of Glendale - Finance Department8 Surplus/ Resources Expenditures (Shortfall) Adopted Budget $168,160,000 $168,112,000 $ 48,000 Adjustments since Adoption 28, ,000 (348,000) Revised Resources (8,129,000) (8,129,000) Projected YE Shortfall Before Adjustments $160,059,000 $168,488,000 $(8,429,000) General Fund - Update Budget Status

April 28, 2009City of Glendale - Finance Department9 General Fund – Update of Mid-Year Adjustments   Resource Adjustments:   Use of accumulated Gas Tax to relieve GF contribution for street projects$ 1,500,000   Expenditure Adjustments:   “Hard” hiring freeze – net savings2,425,000   Elimination of 23 vacant positions1,814,000   Suspend Transfer to CIP1,300,000   Transfer Project Mgmt costs to CIP819,000   M&O Reduction Efforts – estimate655,000 Total Recommended Adjustments$8,513,000 $ 7,013,000

April 28, 2009City of Glendale - Finance Department10 General Fund – Update of M&O Expenditure Reduction Efforts   Various energy savings measures implemented   Comprehensive energy audits of all facilities   All personal appliances eliminated   Office lights turned off at facilities   Building Maintenance shifted to day schedules   Fleet Management consolidation   Centralized fleet management   Reduction in fleet size/Take-home vehicles   Reduction in fuel consumption   Restricted Travel & Training

April 28, 2009City of Glendale - Finance Department11 Surplus / Resources Expenditures (Shortfall) Adopted Budget $168,160,000 $168,112,000 $ 48,000 Adjustments since Adoption 28, ,000 (348,000) Resource Reduction (8,129,000) (8,129,000) Projected YE Shortfall Before Adjustments $160,059,000 $168,488,000 $(8,429,000) Mid-Year Recorded Adj. 1,500,000 (3,933,000) 5,433,000 Projected YE Subtotals $161,559,000 $164,555,000 $(2,996,000) Administrative Actions (3,080,000) 3,080,000 Projected YE Budget $161,559,000 $161,475,000 $ 84,000 General Fund – Update Budget Status

April 28, 2009City of Glendale - Finance Department12 Surplus / Resources Expenditures (Shortfall) Projected YE Subtotals $161,559,000 $164,555,000 $(2,996,000) Changes to Arrive At Initial Budget: Initial Budget: Reduction in Resources (1,570,000) (1,570,000) Increase Transfer – CIP 1,120,000 1,120,000 Increase in Expenditures 4,155,000 (4,155,000) Initial Budget Est. $161,109,000 $168,710,000 $(7,601,000) General Fund – Budget Estimates

April 28, 2009City of Glendale - Finance Department13 General Fund – Budget Estimates Changes in Resources:   Decrease – Sales Tax Revenues$ (733,000)   Decrease – Building & Planning Fees(198,000)   Closure of Passport Services(140,000)   Move Mutual Aid to Special Rev. Fund(200,000)   Other Miscellaneous Revenues(299,000) Reduction in Revenues$(1,570,000)   Increase in transfer from CIP1,120,000 ) Net Reduction of Resources from $ (450,000)

April 28, 2009City of Glendale - Finance Department14 General Fund – Budget Estimates Changes in Expenditures:   COLA - Glendale Police Officers Association$2,000,000   COLA - Glendale Firefighters Association1,200,000   COLA – Glendale Police Managers162,000   Net Increase in Transfers663,000   Net Increase in Other Expenditures130,000 Increase in Expenditures from $4,155,000

April 28, 2009City of Glendale - Finance Department15 Surplus / Resources Expenditures (Shortfall) Initial Budget $161,109,000 $168,710,000 $(7,601,000) Known Changes: GFFA COLA elimination (1,200,000) 1,200,000 Benefit/Insurance Increase (est.) 500,000 (500,000) Increase Paramedic Trans. 1,300,000 (1,300,000) Cost Allocation 1,300,000 1,300,000 Revised Initial Budget $162,409,000 $169,310,000 $(6,901,000) General Fund – Strategies to Balance

April 28, 2009City of Glendale - Finance Department16 General Fund – Other Strategies to Balance Estimated Savings:   Eliminate/Reduce contracted COLAsup to $2.0M   Specific Program Reductionsup to $3.6M   Continue Hard Hiring Freezeup to $4.5M   Change Service Models e.g. New EMS Modelup to $700K   Privatizationup to $500K   Graphics   Employee Health Services

April 28, 2009City of Glendale - Finance Department17 General Fund – Other Strategies to Balance Estimated Savings:   Organizational Changes / ConsolidationsTBD   Fleet Consolidation   Graphics / Mail Services   Filming Coordination & Consolidation   Other Estimated Impacts:   One-time Capital Outlay Requests$160K   Unfunded Recurring Expenditure Requests$620K

April 28, 2009City of Glendale - Finance Department18 General Fund – Budget Study Session Schedule   Structure – Department Discussions   Timing   2 hours Tuesday am beginning May 12 th   4 hours Thursday am or pm beginning May 7 th

April 28, 2009City of Glendale - Finance Department19 General Fund – Budget Study Session Schedule   Tuesday mornings – 2 hours   May 12 th – Finance, Human Resources, Mgmt Services, City Clerk, City Treasurer   May 19 th – City Attorney, IS, Planning   May 26 th – GWP & CD&H   Thursday mornings – 4 hours   May 7 th - Police, Fire, & Development Services   May 14 th – Library, Parks, Public Works   May 21 st – CIP   May 28 th - Recap

April 28, 2009 City of Glendale - Finance Department 20 Feedback Questions Comments