FY200910 Budget Development Workshop

1
FY2009/10 Budget Development Workshop

• January 29, 2009

2
Workshop Objectives

• Review Adopted Budget Cycle, Objectives,
  Principles and Guidelines
• Develop shared understanding of
• FY2009/10 budget challenges
• Magnitude of Reductions
• Establish process and next steps for the
  FY2009/10 Proposed Budget
• Identify areas/issues that Council would like
  additional information

3
Budget Cycle
4
Council Adopted Budget Objectives

• Develop a fiscally sustainable spending plan by
  July 1st
• Align the City Councils strategic plan with the
  budget
• Provide funding to deliver services and
  infrastructure to the community
• Communicate Councils vision to the community

5
Council Adopted Budget Principles

• Maintain a fiscally sustainable, balanced budget
• Use one-time resources strategically
• Identify return on investment and impacts fiscal
  and social benefits
• Maintain a reserve for economic uncertainties
• Keep the City Council informed on the fiscal
  condition of the City
• Focus on incremental changes to staffing and
  spending
• Identify resources for top priorities and
  initiatives
• Continuous evaluation for efficiencies and
  effectiveness

6
Council Adopted Budget Development Guidelines

• Preserve the delivery of City services to
  residents and businesses to the extent possible
• Use a mix of reserves, new revenues, and citywide
  departmental reductions consistent with a
  sustainable budget approach
• Evaluate new ways to do business, including
  organizational efficiencies
• Pursue new, and enhance existing revenue sources,
  where appropriate, to recover costs of programs
  and services
• Preserve employment for career employees
• Engage the Public, Labor Unions, City Partners,
  and City Staff on an ongoing basis

7
Magnitude Fiscal Background

• Economic Context
• Impact on Revenues
• Multi-year
• Net General Fund Budget
• Reduction Scenarios
• Impact on Enterprise and Special Revenue Funds

8
Outcomes

• Balanced Budget
• Right Size the Organization
• Identification of programs and services that will
  be reduced, changed, or eliminated
• Redefined Levels of Service

9
Options/Resources

• Salary and Benefit Savings
• Program/Service Reductions (recommendations 2/24)
• Essential Services Planning
• Reduction Scenarios
• Revenues
• Departmental Fees and Charges
• Sacramento Housing and Redevelopment Agency
  (SHRA)
• One-Time Funding
• Economic Uncertainty Reserve-10.5 million
• CIP Review

10
Next Steps

• Midyear Report, February 10th
• Workshop 2, February 24th
• Fees and Charges Report, March 2009
• Community Meetings, March 2009
• Proposed Budget, May 1st
• Budget Hearings in May and June
• (draft Hearing Schedule attached)