Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

FROM:

Cynthia Wagner, Assistant City Manager

CC:

 

Casey Toomay, Budget Manager

Diane Stoddard, Assistant City Manager

DATE:

July 8, 2010

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. 

Administrative Services Director

$116,655

Net reduction in all affected departments – position eliminated

Historic Preservation Intern

$10,900

Position vacant – will not be filled for remainder of 2010

Transportation Planner

$5,000

Saving created by vacancy – position to be filled in 2010

Information Systems Technician

$50,000

Position vacant – will not be filled for remainder of 2010

Engineering

$100,000

Two vacant positions – Inspection Supervisor and Project Inspector

will not be filled for remainder of 2010

Parks and Recreation

$102,000

Three Vacant positions – Maintenance Employee, Horticulturalist, Director

will not be filled for remainder of 2010

Police Department – recruit class

$102,000

Saving created by vacancies - 2010 class did not start until April 5, 2010

 

Additional personnel savings, not related to vacancies, are anticipated in 2010.

Public Information

$14,000

Net reduction in costs due to change in personnel –

position has been filled at a lower cost

Legal Services – Prosecutor

$5,000

Net reduction in costs due to change in personnel –

position has been filled at a lower cost

 

Differentiate between expenditure reductions and reductions by transferring expenditures to other funds

See attached

 

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.