Memorandum
City of Lawrence
City Manager’s Office
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TO: |
David L. Corliss, City Manager |
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FROM: |
Cynthia Wagner, Assistant City Manager |
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CC:
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Casey Toomay, Budget Manager Diane Stoddard, Assistant City Manager |
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DATE: |
July 8, 2010 |
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RE: |
Follow Up to City Commission Questions |
Below is information provided in response to questions by the City Commission relating to budget issues. Updates will be provided as additional information becomes available or additional requests are made.
2010 Budget Monitoring
Provide additional information/clarification on positions held vacant in 2010 general fund budget cuts – which have been planned to continue to be unfilled.
The following outlines status of positions vacancies were included in 2010 proposed cost reductions.
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Administrative Services Director |
$116,655 |
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Net reduction in all affected departments – position eliminated |
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Historic Preservation Intern |
$10,900 |
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Position vacant – will not be filled for remainder of 2010 |
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Transportation Planner |
$5,000 |
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Saving created by vacancy – position to be filled in 2010 |
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Information Systems Technician |
$50,000 |
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Position vacant – will not be filled for remainder of 2010 |
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Engineering |
$100,000 |
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Two vacant positions – Inspection Supervisor and Project Inspector will not be filled for remainder of 2010 |
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Parks and Recreation |
$102,000 |
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Three Vacant positions – Maintenance Employee, Horticulturalist, Director will not be filled for remainder of 2010 |
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Police Department – recruit class |
$102,000 |
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Saving created by vacancies - 2010 class did not start until April 5, 2010 |
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Additional personnel savings, not related to vacancies, are anticipated in 2010.
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Public Information |
$14,000 |
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Net reduction in costs due to change in personnel – position has been filled at a lower cost |
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Legal Services – Prosecutor |
$5,000 |
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Net reduction in costs due to change in personnel – position has been filled at a lower cost |
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Differentiate between expenditure reductions and reductions by transferring expenditures to other funds
2011 Budget Information
Clarity/information on when the last time we spent down fund balance: what for, how much, reasoning, etc.
See Agenda for 6/15/10 Study Session
Look beyond 2011 to see impact of fund balance utilization.
See 2012 projections on Agenda for 6/15/10 Study Session
What are the savings in maintenance budget due to material cost reductions right now?
As outlined in the attached bid summary, the actual project bids for maintenance projects awarded to date have resulted in savings of approximately $375,000 when compared to the engineer’s estimate. When a project comes in under budget or the awarded contract amount, those “excess” street maintenance funds are reallocated to another active or pending maintenance contracts or to expand the scope of an existing project. Additional work completed on 2010 projects is also summarized on the bid summary.
Where are we on sales tax revenues year to date versus YTD last year?
See sales tax report on Agenda for 7/13/10 Study Session.
How many retirees are enrolled in the City’s health insurance plan and what is the history of how rates for this coverage have changed.
A memo from the Human Resources Division is attached.
How much room do we have we can utilize at Farmland and what are the costs for needed improvements/work on this site?
A FAQ on the Farmland site was included with the Agenda for the 3/23/10 Study Session. This provides a link to an earlier draft of a redevelopment plan for the site, which addresses these questions.
Return on investment on what other communities are spending on economic development. See attached.
Provide a breakdown of expenditures from the City’s share of the countywide sales tax for 2011. See attached.
Approximately how many animals does Animal Control transport to the Lawrence Humane Society each year? See attached.
How does the transit sales tax compare to the mill levy for transit?
It would require 3.125 mills of property tax to generate the $2,652,500 we project to receive from the transit sales tax in 2011. The 2008 budget included 1.71 mills for transit. In 2011, 1.71 mills of property tax would only generate $1,459,000 of revenue.
Utilities Information
Need rate comparison information – comparative data to other communities – including wholesale rates
Infrastructure management plan (like pavement management index)
Fuel, electricity, gas, chemical increases in utilities as well as general fund
Noreaster vs parallel line under the bridge – pros and cons; cost and what Noreaster gets versus having a parallel line.
Responses to these questions are provided in a separate memo from the Utility Department, which was posted with the agenda for 6/15/10 Study Session.
Determine per unit price and how much more we can charge for water revenues, increase sales, etc to increase revenues. Staff is working on a proposal for rural water districts that includes lower rates of return for wholesale water rates.
Overtime
Ensure reviewing for consistency/conformity in policies across departments (understand MOU restrictions may come in to play)
Is comp time utilization a best practice with least cost and something we should be looking at in different departments (not just parks)
Staff has reviewed organizational wide overtime usage and is working to develop recommendation including those for implementation in 2010, 2011, and future years. A memo outlining this review and next steps is included in the agenda for 7/13/10 study session.