1. 2010-11 Budget Budget Study Session #1 March 30, 2010

2. 2 Topics FY 2008-09 General Fund YE Results FY 2008-09 General Fund YE Results FY 2009-10 Adopted General Fund Budget FY 2009-10 Adopted General Fund Budget 2010-11 Challenges 2010-11 Challenges 2010-11 General Fund Budget Projections & Balancing Strategies 2010-11 General Fund Budget Projections & Balancing Strategies 2010-11 Budget Study Session Schedule 2010-11 Budget Study Session Schedule

3. 3 2008-09 General Fund Year-End Results

4. 4 2009-10 General Fund Adopted Budget ResourcesExpenditures Net (Over)/ Under Initial Budget Estimates $ 161,109 $ 170,802 ($9,693) Strategies Implemented: Cost Allocation 2,0002,000 Fleet Mgmt Consolid. (one time) 1,0001,000 FY 2008-09 Surplus 1,0001,000 Dept. Reductions (4,170)4,170 COLA Elimination (1,200)1,200 Organizational Changes (400)400 Other Adjustments (281)(204)(77) Adopted 2009-10 Budget $ 164,828 $ - In Thousands

5. 5 2010-11 Challenges Revenue projections remain flat Revenue projections remain flat Cost increases due to: Cost increases due to: –Existing employee contracts –Medical and benefit costs –Worker’s Compensation –Liability Insurance –PERS rates MAINTAIN 2009-10 SERVICE LEVELS MAINTAIN 2009-10 SERVICE LEVELS –Reduce costs not service levels

6. 2010-11 General Fund Budget Projections Resources ResourcesExpenditures Net Gap Net Gap Adopted 2009-10 Budget $ 164,828 $ - $ - 2010-11 Resource Changes: Property Tax Revenues Property Tax Revenues Licenses & Permits Licenses & Permits Charges for Services Charges for Services State Grants State Grants Use of Money & Property Use of Money & Property Changes in Cost Allocation Changes in Cost Allocation Transfers – Fleet Fund (one time) Transfers – Fleet Fund (one time) Use of Prior Year Fund Balance Use of Prior Year Fund Balance 973(1,527)(84)(50)(1,132)2,900(1,000)(1,000)3,662973(1,527)(84)(50)(1,132)(762)(1,000)(1,000) 2010-11 Expenditure Changes: Salaries/PERS/Other Benefits Salaries/PERS/Other Benefits City Clerk Election Budget 2010-11 City Clerk Election Budget 2010-11 Budgeted Underexpenditures Budgeted Underexpenditures2,590400563(2,590)(400)(563) 2010-11 Initial Estimates $ 163,908 $ 172,043 ($8,135) In Thousands

7. 7 Resources Resources Expenditures Expenditures Net Gap Net Gap 2010-11 Initial Estimates $ 163,908 $ 172,043 ($8,135) Strategies * GRA Loan Payment Increase GRA Loan Payment Increase1,0001,000 CIP Sales Tax Allocation (4%) CIP Sales Tax Allocation (4%)1,1001,100 Commercial Refuse Fee Transfer 1,0001,000 Potential Salary & Benefit Concessions Potential Salary & Benefit Concessions(3,000)3,000 Building Permit Revenues Adj. Building Permit Revenues Adj.1,0001,000 Department Operating Reductions Department Operating Reductions(1,067)1,067 2010-11 Revised Initial Estimates $ 168,008 $32 $32 In Thousands 2010-11 General Fund Budget Projections * = Hiring Freeze $4.0 M and Department Program Reductions $3.5 M

8. 8 Budget Study Session Schedule 2010-11 Budget Adoption Study Session #1 General FundMarch 30 Study Session #2 Capital Improvement ProgramApril 6 Study Session #3 Department PresentationsApril 20 Study Session #4 (tentative)April 26 Study Session #5 (tentative)May 18 GRA & Housing BudgetsMay 18 Budget HearingJune 15 Budget AdoptionJune 22 Council Direction is requested regarding Study Session agendas Council Direction is requested regarding Study Session agendas

9. 9 Questions&Answers