HomeMy WebLinkAboutAgenda Report - February 10, 2004 B-02 SMAGENDA ITEM ISO Z
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Introduction of Phase 111 Budget Reduction Options
MEETING DATE; February 10, 2004
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: That Council review and discuss with staff a portion of Phase III
options for budget reductions.
BACKGROUND INFORMATION: The City Manager has presented the City Council with Phases I and
II budget reduction recommendations; approved by Council
respectively on December 17, 2003 and February 4, 2004. As
demonstrated during the February 4th presentation, the City is still "challenged" by a budget shortfall as a
primary result of proposed State take-aways. This is where Phase III comes into play. Phase III
reduction options could begin to cut into the core of City services and could directly impact
service levels and employee compensation and benefits. Many of the options will require labor
negotiations.
The City Manager, working with Department Heads, has developed over $7 million of Phase III options
for Council's consideration. Please keep in mind that with the approval of the Phase I and II reductions,
the "challenge" is now approximately $225,000. However, until such time as the State budget issue is
resolved, the City must proceed with caution and be conservative with regard to assumptions. Thus, the
Phase III options exceed what is currently needed to solve the "challenge" but can be in the City's back
pocket should the need arise to take a chainsaw to the budget.
The City Manager will begin to present the Phase III options to Council during the Shirtsleeve Session
and expects that it will take a few sessions to fully cover all options. As a starting point Mr. Flynn will
discuss the following options for further budget cuts:
1. Continued Hire Freeze
2. Deferral of Scheduled Pay Raises
3. Establishment of a 2 -Tier PERS Benefit for New Employees
4. Temporary Work Furloughs of 2-6 Weeks
5. Deferral of 8 New Positions in FY 04105
6. Institute Layoffs of Contract Employees
7. Suspension of Administrative leave Pay -Out
8. Reduction of Overtime by 50% other than Public Safety
9. Mandatory Work Furlough (every other Friday) Excepting Public Safety
FUNDING: Not Applicable
.lane S. Keeter
Dep ty City Manager
APPROVED:
er
2004/05 Phase III Options (partial list)
GF Savings
Enterprise
Savings
Negotiable
For
Implementation?
Notes
Continued Hire Freeze
375,000
No
Budgeted 20 vacant positions
Defer 8 New Positions FY 04/05
656,845
No
6 Paramedics 1 Firefighter
1 High Tech Crime Investigator
50% Reduction of OT Exempting Public Safety
116,900
No
Temporary Work Furloughs 4 Weeks
1,064,180
623,634
Yes
Mandatory Work Furlough (every other Fri.)
Exempting Public Safety
1,064,380
623,635
Yes
Suspension of Administrative Leave Pay -Out
122,984
21,544
Yes
2 -Tier PERS Benefit for New Employees
0
0
No
Prospective
Deferred Comp Match — 100%
344,719
136,753
Yes
Defer Scheduled Pay Raises
310,061
22,961
Yes
Temp. & Contract Employee Layoffs
260,000
No
Employee Layoffs
65,000/position
No
020904