Finance Highlights 2011 0114 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: January 14, 2011 TO: Stephen L. Hollister, City Manager FROM: Tracy Vesely, Finance Dire or 1 BY: Mary Ann Perini, Budget and Compliance Manager SUBJECT: FY 2011 -12 Baseline Budget Assumptions As the City prepares for the upcoming FY 2011 -12 budget cycle, the Finance Department calculates a baseline budget as a starting point for budget discussions. The baseline budget is established assuming the provision of current levels of City services. Total baseline expenditures are deducted from projected revenues to determine an annual shortfall or surplus. The City commenced its internal budget process for FY 2011 -12 in early December 2010. The baseline budget was built from current payroll as of November 2010, and updated with known labor- related cost increases such as medical, dental, and Ca1PERS rates. The non -labor budget was essentially remained flat from the adopted FY 2010 -11 budget and excluded "one-time adjustments. Both the labor and non -labor budgets continue to assume the reductions made during the FY 2010 -11 budget process and reflect decreased programs and staffing, with the exception of program staff reinstated with the passage of Measure Z Transaction and Use Tax. A few examples of the many prior year service and program reductions include: • Police Tactical Unit services suspended • Main and Mulford library hours cut by 4 hours per week and the remaining branch libraries hours cut by 6 to 9 hours per week • Street Light, Traffic Signal Maintenance, and Park Maintenance services reduced by one - third • Permit Counter and Permit Work inspections cut in half • Boys and Girls Club Swimming Pool eliminated lap swimming at noontime each day • Eliminated General Fund contribution to community agencies Again, this assumed baseline budget is the starting point for budget discussions. Any projected operating shortfall (in the General Fund and other funds) will need to be addressed and actions taken (e.g., budget reductions) to balance the budget.