4A Public Hearing 2011 0606 - Laserfiche WebLink

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FY 2011-12 Budget June 6, 2011 part of the budget process, staff completed a detailed line -item budget review and reduced expenses by S802,000 in the General Fund and 5467,000 in all other funds. It is important to note that the budget has been cut to the point that services are impacted in every department, and that the proposed budget includes reductions that are in addition to the cuts made in previous years. The reserves have dwindled to the point where there is insufficient cushion to absorb unanticipated expenses; any added expense requires an offsetting reduction. The forecast for the General Fund is a much improved picture from prior years, with a balanced budget for FY 2011 -12. However, the General Fund deficit reappears over the next three years. This is mainly driven by conservative revenue estimates, and anticipated increases in operating costs. In addition to the General Fund, the City maintains other key revenue funds that range from the Water Pollution Control Plant to the Redevelopment Agency. Multi -year forecasts for each fund, for the most part, show these funds to be balanced in terms of available resources and projected requirements for FY 2011 -12. There are, however, certain funds that will require additional attention in order to achieve long -term financial stability. The Shoreline Fund is the only fund that is projected to be in deficit for FY 2011-12. Staff will be reviewing balancing options and monitoring program revenue, and will return to Council at amid -year to recommend a balancing plan. Proposed Budget Amendments Pursuant to City Council direction, staff is presenting two amendments to the City Manager's Proposed Budget for consideration as part of the Adopted Budget. 1. 510,000 for Eden I &R, the Alameda County 2 -1 -1 System. Use anticipated General Fund savings in the FY 2010 -11 Council Member travel budgets to fund this social services program. Staff will review the FY 20 -11 -12 budgets for Council Members to identify possible permanent expenditure reductions to make this a recurring budget allocation and provide this information to City Council at the FY 2011 -12 mid -year update. 2. 540,000 for a shared Emergency Services Coordinator (with other Alameda County cities) for a coordinated Emergency Disaster Preparedness Program. Allocate S40,000 from the anticipated FY 2010 -11 savings in the Alameda County Fire Department contract to reinstate this program. Continued program funding will be reviewed within the context of the FY 2012 -13 budget. 3. FY 2012 -13 & FY 2013 -14 Biennial Budget Process. Upon direction from the City Council Finance Committee, staff is recommending that City Council adopt a two -year budget process for upcoming years. Current Cite Council Policy • Article V of the City of San Leandro Charter requires the City Manager to submit the Proposed Budget to the City Council at least thirty -five days prior to the beginning of each fiscal year and for Council to adopt the Budget following a Public Hearing, by no later than June 30` 3