1. FY 2011 Organizational Initiatives October 12, 2010

2. The Challenge The City needs to implement the cost reductions approved in the FY 2011 General Fund budget in a manner that has the least impact on public services yet generate permanent and sustainable long- term savings.

3. FY 2011 General Fund Budget Added back over $2.3 million in revenue primarily due to sales tax measure. Allocated funds based on percentage formula to Library, Public Safety and Parks/Recreation Avoided the most egregious of reductions

4. FY 2011 General Fund Budget Total reductions about $3.5 million. Third consecutive year of significant expenditure reductions. Cumulative impact of reductions is a loss of 96 positions (25% of work force). Need to restructure the organization, reprioritize duties, redefine services.

5. The Process City Manager and Department Heads developed five City/Community Goals. The Goals should reflect the community’s highest priorities. Initiatives defined as projects, programs and/or other activities to address the Goals were developed

6. City/Community Goal General Government/Fiscal Sustainability Ensure a balanced budget for the 10-year Financial Plan period that meets the requirements of the City’s Budget and Fiscal Policy

7. General Government Initiatives Develop balanced 10-year Financial Plans for all funds. Present a restructuring plan and related initiatives that will keep Woodland fiscally sustainable into the future. Continue progress toward implementing a Performance Based Budget.

8. City/Community Goals Public Safety Within available resources, ensure that Woodland is among the safest cities of comparable size in California and that citizens feel safe in their homes, places of work and throughout the community.

9. Public Safety Initiatives Minimize police reductions due to three officer vacancies. Enhance Problem Oriented Policing through cooperation. Reorganize Fire management due to retirements. Explore options to regionalize Fire service.

10. City/Community Goals Infrastructure Sustain Woodland’s core physical assets, including streets, buildings, technology, utilities and parks to high standards in condition, appearance and efficiency.

11. Infrastructure Initiatives Several major capital projects to repair and rehabilitate utility infrastructure. Implementation of the Surface Water Project is a major focus. Reorganization to accommodate the assignment of the Parks Division to Public Works in progress.

12. City/Community Goals Economic Development, Redevelopment and Development Services Guide Woodland’s development according to landmark policy documents and actions, including the ULL, GP, DSP, ESSP, SLSP, 10-year CIP and other documents approved by Council.

13. Development Initiatives Continue development in Spring Lake. Facilitate redevelopment projects. Restructure redevelopment/economic development. Advance flood mitigation/USACE study. Expand RDA.

14. City/Community Goals Quality of Life Support the community’s ability to provide an array of education, recreation and cultural events and programs for persons of all ages, abilities and interests.

15. Quality of Life Initiatives Public input to help determine the highest library services priorities. Normalizing Library hours (Implemented). Enhancements to volunteer program. Collaboration with Senior Center, Inc. Alternatives for placement of the Recreation Division.

16. Summary The organization is s-t-r-e-t-c-h-e-d due to work force reduction, loss of resources and major projects in progress. It is critical that all of the initiatives are carefully evaluated. The initiatives include major projects that would significantly change Woodland

17. Review of Revised General Fund 10- Year Plan October 12, 2010

18. The Challenge The quarter-cent sales tax measure will sunset in 2014 and the City needs to develop financial strategies that will correct the current fiscal imbalance and bring the General Fund into long-term sustainability without the additional income.

19. Current Economic Conditions Recovery from the economic downturn will be slow for the next 5-8 years. Additional sales tax could generate $8.3 million over the next four years. Election results = expectation of services. To achieve this, City must revise its fiscal priorities.

20. The Process Review General Fund revenue assumptions. Review General Fund expenditure assumptions. Result generated the “unbalanced” 10- year Plan. Revise assumptions to provide the “balanced” 10-year Plan.

21. Revenue Assumptions Modest property tax escalation reflects some development in Spring Lake. Sales tax growth reflects inflationary increases until FY 2018. Measure V ends in September 2014. All other recurring revenue stable and slow.

22. Original Expenditure Assumptions Personnel costs increase 5% - 6% annually based on historical trends. Inflationary increases in Discretionary expenditures. Known contract and operating costs reflected in Non-Discretionary expenditures.

23. Changed Assumptions to Necessary to Balance Revised employee compensation assumptions; cost of living adjustments would be reduced compared to historical trends and pension, health insurance and similar benefits costs shared. New ways of doing business will need to be developed.

24. Revised Expenditure Assumptions Cost of Living Adjustments modified to maintain salary increases at 1% - 3%. Benefits reflect increases in early years followed by stability later. Cost sharing of benefits in 2013 and 2014 reflect employees paying their share of pension costs.

25. Strategies to Balance Guiding Principles and Recommendations on Pension Reform reflects agencies and employees sharing costs and risks. Report maintains the commitment to defined benefits yet seeks to reduce costs. Cost sharing may generate reduced benefit structure for current and future employees.

26. Strategies to Balance Yolo Shared Services Program reflects managers commitment to reduce costs/avoid duplication. Opportunities for shared services would be reviewed with stakeholders. Example: All cities and University reviewing regionalization of fire services.

27. Future Actions Meet with Bargaining Units. Meet with Employees. Implement the FY 2011 Initiatives. Continue discussion with all stakeholders. Council, community, employees Boards/Commissions need to be flexible!