Leave No Stone Unturned Zane Johnston City of Tracy - Finance and Administrative Services Director 2003 CSMFO President

Now may seem like the WORST time to be in local government finance But it is the time when your community needs the BEST from you

Declining Revenues Increased Expenses Unbalanced Budgets Uncertain Economy Lack of Political Will Your job is to find the solutions – But How?

Three approaches that may help Look everywhere – then look again Have short and long term solutions and link them together in a cohesive plan Use today’s circumstances to put into place things will better serve tomorrow

Look Everywhere – Leave no stone unturned Boulders Rocks Pebbles

Boulders – Employee Compensation Some may not be immediately achievable Salary PERS (employer and employee) Participation in health costs Furloughs

Personnel Costs which you do control Staffing levels – attrition, layoff, early retirement, etc. Use of Overtime Reorganization – combine positions – especially at high compensation positions It’s not business as usual, may have to have less than perfect organization

Rocks – some moderate revenues or expense reductions Revised Fees – but will anyone pay more? Consider setting limit to subsidy for a program area New Fees – What are you giving away and to whom? – example ALS Contract out some functions (consult labor)

Pebbles – there’s a lot of them in the sea Fleet utilization – fewer vehicles = less to charge Accurate cost allocation plans and application of overhead charges Revisit CDBG or other funding Are you renting space? Reduce Eliminate low participation programs City supplied cell phones Reimbursement for professional staff Small fees for previously free services or events Energy efficiencies

Short and long term solutions linked together in a cohesive plan Short term or politically expedient OK – but not if it is your only plan One time revenue OK – if you are buying time for more long term solutions Can’t just buy time and pray

Use Today’s circumstances to put into place tools that will help for tomorrow Greatest economic downturn since Great Depression should produce some change of policy and attitude Now is the time to capitalize while it is being experienced and not just “projected” Sound Reserve policy Sound fiscal policies related to operating expenses, new programs, etc. Two-tier retirement and other benefits