STAFF REPORT

Operations Committee, August 7, 2008

Recommendations Regarding the Council Directed Reduction to the FY2009 General Fund Budget (AD09-001)
Consideration of specific items identified to achieve the reduction directed by Council at its last FY2009 budget worksession on June 24, 2008
Speaker:  Mr. William Coleman

From:  William B. Coleman, Jr., Town Manager
Prepared by:  Scott Fogleman, Budget Director
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

 

The Cary Town Council directed at its budget worksession on June 24 for the staff to research opportunities for reducing the fiscal year 2009 general fund operating budget.  The budget adoption vote at the regular Town Council meeting on June 26, 2008 consisted of approving the Town Manager’s Recommended Budget along with a list of changes.  Item 12 on the adopted list of changes as shown below addressed the reduction:

 

“12.   The recommended general fund operating budget for FY 2009 reflected an increase of 7.8% compared to the FY 2008 adopted budget.  At Council’s direction to review the budget for reduction possibilities, this percentage increase has been reduced from 7.8% to 4.5%.  This will result in a reduction to the general fund recommended operating budget of $3,506,378.  For budget ordinance purposes and Council adoption, the net impact including all other changes noted herein, will be reflected as an adjustment to the “Department Allocation Accounts” line item in the general fund budget.  This will result in an FY 2009 adopted general fund operating budget that is 4.5% higher than the FY 2008 adopted general fund operating budget.  Specific areas resulting in budget reductions are being examined by staff for those areas that will least impact direct service provision to citizens in FY 2009.  The specific list of changes and resulting specific budget ordinance amendments will be presented to the Town Council for approval at a later date.

 

Below is a summary of the items chosen for reduction in the FY2009 budget.  The shaded items were already specifically identified in the list of changes approved as part of budget adoption.  The remaining items have been identified to achieve the total reduction required:

 

Elimination of additional staff & truck request in Recycling due to automated recycling program

(640,471)

Reduction of class & pay impact - actual versus budgeted in recommended

(38,530)

Change scope of tennis court fences from replacing to maintenance

(26,000)

Additional reimbursement for price increase for jet truck in utility fund

(20,000)

Add dues & membership in Council budget to join ICLEI

1,750

Additional travel and training in Council budget for Sister Cities

2,000

Add contract services for review of Time Warner Cable request by the Public Information Office

10,000

Add wireless connection charges for Police laptops

12,600

Increase C-Tran subsidy due to change in fare increase proposal

15,313

Price increase to purchase jet trucks in Operations

20,000

Price increase to purchase automated trucks in Solid Waste

25,000

Salary and benefits for Council appointed positions

32,081

Delay of base vehicle replacements (net of $125K for potential additional maintenance costs)

(1,194,863)

Delay hiring of 11.75 new positions until January 1, 2009

1.00

Accountant I

1.00

Database Analyst Position

0.50

Safety Technician

1.00

Police Officer I

2.00

Emergency Communications Officer I's (These savings would be realized even without this budget reduction effort.  Due to the current number of ECO positions already in the hiring process, our anticipated capacity to hire and train ECOs through the end of calendar 2008 is currently full as there are a limited number of call answering stations in the 911 center to perform the very thorough training process.)

0.50

Police Support Services Technician

1.00

Police Corporal (School Resource Team)

1.00

Parks Planner

0.25

Senior Park Operations Technician

0.25

Parks Operations Technician

1.00

Athletics Program Specialist

0.50

PWUT Data Control Technician

0.75

PWUT Administrative Assistant

1.00

Facility Maintenance Worker II

 

(296,460)

Move vehicle purchase to related capital project Class 8 Refuse-Truck (33000+ GVW)

(235,500)

Delay median plantings (High House Road - $54,000 & Chapel Hill Road -$126,000)

(180,000)

Move vehicle purchase to related capital project Class 8 Refuse-Truck (33000+ GVW)

(175,000)

Move vehicle purchase to related capital project Class 8 Refuse-Truck (33000+ GVW)

(175,000)

Delay athletic field turf renovation (renovate fields 4/5 and add drainage improvements)

(150,000)

Reduce traffic signal cabinet replacement

(90,250)

Delay parking lot resurfacing projects (Cary Depot and Fire Station 5)

(79,300)

Reduce picnic table replacement project at Bond Park (replace only severely damaged tables)

(66,000)

Delay force main discharge manhole covering

(63,800)

Delay athletic field fencing replacement (Middle Creek and Annie Jones)

(63,500)

Reduce merchant fee budget from $425,000 to $375,000

(50,000)

Delay encryption software for laptop computers

(40,000)

SUV Vehicle Capabilities (4X4) (Removed due to delay of replacement vehicles)

(24,060)

Revised pricing on "body removal" services

(12,000)

Revised pricing on BMW Motorcycle lease

(9,000)

Carpet replacement at the Department of Motor Vehicles building

(7,700)

Removed equipment for spare vehicle reallocation due to delay of replacement vehicles

(6,724)

Herb Young Community Center cinder block wall screening

(3,500)

Total

(3,528,914)

 

Fiscal Impact:  The items in the list above were chosen to minimize the FY2009 operating impact to the organization and the citizens we serve.  The net result of these changes is a reduction to the general fund operating budget of $3,528,914.  This exceeds the targeted reduction amount of $3,506,378 by $22,536.

 

Staff Recommendation:  Staff recommends approval of the identified list of reductions to the general fund operating budget totaling $3,506,378 and the associated detailed budget ordinance and general ledger account adjustments necessary to implement these changes.