CITY OF SALEM FY 2012-13 BUDGET MESSAGE IN-DEPTH Budget Adjustments Affecting Multiple Funds Below are proposed FY 2012-13

3 budget adjustments that impact multiple City funds: Health, Dental, Vision Insurance. The total increase for the three plans is $899,000. The City is self insured for these insurance benefits. The FY 2012-13 budget includes a medical insurance rate increase of 12% beginning in January 2013, the start of the health plan year. Reserves for medical will be budgeted at $3.5 million and actual claims costs are estimated to be $13.5 million next year. The national health care plan and Oregon state assessments will have a financial impact on this plan in the future. Dental insurance rates are projected to increase by 2.2% in January 2013; vision insurance rates remain the same. The maximum benefit amounts are capped for each covered member per year in both plans which makes the cost of these two plans fairly predictable. Workers Compensation. These rates continue to reflect the actual costs by department for claims and other costs. Costs decreased by $105,000 from the FY 2011-12 adopted budget. In FY 2011-12, actual costs were allocated to departments for the first time. The proposed FY 2012-13 budget rates were increased to include recovery of the administrative costs, which were previously paid from the fund. Fund level reserves continue to be approximately $800,000 lower than the underwriters recommended level. However, it is anticipated that actual claims costs will not exceed the budgeted amount. Overall, claim costs continue to increase each year primarily due to increases in actual medical care costs. General Liability. This fund remains stable. The budget reflects a $278,000 increase for a total budget of $4 million. The cost of excess insurance (for property or earthquake insurance as examples) increased slightly due to the catastrophic disasters that have occurred in the United States in the past few years. Water and Sewer Franchise Fees. Each year, the City transfers a portion of the franchise fees to the Public Works Fund to support street maintenance projects. In FY 2011-12, the transfer was $1 million. Due to moderate increases in gas tax revenue received by the Public Works Fund, the ongoing funding of transportation projects through the Streets and Bridges Bond, and the need to fund basic General Fund services, the proposed transfer is reduced to $500,000. Franchise fee revenues help support General Fund programs and services including police, fire, library, code enforcement, and parks. Fleet Services. Funding for fleet services includes fleet repair and maintenance, fleet replacement, fuel and overhead expenses. Fleet rates are calculated based on projected costs and applied to each city program area based on the number and
B1

category of equipment in use. The proposed budget reflects a reduction of $208,130 from the adopted FY 2011-12 budget. The City is embarking on a threeyear process of revamping operations to ensure the fleet is appropriately sized, to determine which pieces of equipment to own and which to lease, and to establish that funding is sufficient to handle fluctuating costs as well as future replacement needs. The first step, included in the proposed budget, is to break fuel costs out of the rate structure and allocate expected fuel costs to each affected program area. This change will improve the ability of user departments to control and predict costs. The forecast for FY 2012-13 fuel costs has been increased by $234,000 based on estimated price increases. In FY 2012-13, the fleet reserves will absorb the impact if fuel prices increase over what is budgeted in each department. The FY 2012-13 budget includes $1,577,400 for fleet replacement. An analysis of future needs revealed the City is underfunded for replacement costs. In FY 201213, each department will re-evaluate their fleet needs to address this situation. In the General Fund, police cars need to be replaced every four years and current fleet reserves are inadequate to meet replacement needs as we go forward. The proposed budget recommends transferring $200,000 from General Fund NonDepartmental to the City Services Fund for a fleet replacement account. Wage Adjustments. Wages for represented employees are adjusted according to collective bargaining contracts. Non-represented employee wage increases are budgeted at 1%. Public Employees Retirement System Rates. PERS rates are adjusted every two years. Rates increased in July 2011 and are anticipated to be raised again in July 2013. For the FY 2012-13 budget, city-wide PERS costs will decrease by $771,960 from the prior year due to reduced staffing and a lower total payroll expense. The number of active Tier 1 and Tier 2 employees (those hired before August 29, 2003) has decreased by 23 since the end of FY 2010-11. Employees hired on or after August 29, 2003 are in the Oregon Public Service Retirement Plan (OPSRP). This plan is a hybrid retirement plan with both defined benefit and defined contribution components. In 2005 the City chose to create a side account and bond the Citys unfunded liability for PERS. The City receives a discount from PERS called "rate relief" which offsets the higher rates that would have been charged if the bond had not been issued. To the extent that the value of the rate relief exceeds the debt service payments each year, the City realizes a net savings for issuing the bond. It is estimated that the City will realize approximately $385,000 in savings for FY 201213.

B2

General Fund Challenges The General Fund is the largest of the Citys 21 separate funds. Services provided or funded by the General Fund include fire, police, planning, neighborhood enhancement, municipal court, parks, library, recreation, parking services, economic development activities and central administrative services. The fund also includes contributions to internal service funds for fleet, reprographics and insurance. Revenue For the last three years, expectations for General Fund revenue were reduced in each subsequent financial forecast. While each years forecast was built using conservative estimates, the City is continuing to experience greater than anticipated losses in property tax revenue, primarily due to compression. Many other General Fund revenue sources continue to decline or remain flat. Operations costs for the Citys current service mix continue to outpace expected increases in revenue. Total revenue for the General Fund is budgeted at an increased rate of 1.8% from FY 2011-12 budgeted levels. FY 2011-12 revenue was budgeted at $95.0 million; FY 2012-13 revenue is budgeted at $96.8 million. Urban Renewal Agency du jour loan revenue is not included for comparison purposes. The top five General Fund revenue sources provide 92% of General Fund current revenue as shown below: REVENUE SOURCE Property tax all years Franchise fees Internal charges- from other funds State shared revenue Fines, penalties, forfeitures Total top 5 sources Total Revenue all sources FY 11-12 Budget FY 1213 Propos ed $54.9 M $15.1 M $11.3 M $4.1 M $3.3 M $88.7 M $96.8 M

$54.8 M $13.8 M $11.6 M $3.7 M $3.4 M $87.3 M $95.0 M

In FY 2012-13, property tax is estimated to be 57% of total General Fund revenue, as compared to 58% in FY 2011-12.
B3

Property Limitations and Tax Compression The Oregon Constitution limits the growth of a propertys assessed value (AV) to 3% and sets limits on the amount of taxes paid by individual property owners. In accordance with the law, the tax levy on a property is calculated on AV (the valuation placed on a property by an assessor for purposes of taxation) rather than the Real Market Value (RMV). The AV of a property and resulting tax levied can increase up to 3% a year as long as RMV is at least 3% greater than AV; AV can never be greater than RMV. In areas of the City where real estate values have declined or stagnated, the 3% growth in AV has led to AV closely approximating or equaling RMV. When AV and RMV are equal, the change in a propertys AV is capped at the lesser of the change in RMV or 3%, which results in lower tax revenues and causes a higher incidence of compression. Measure 5 introduced limits, starting in 1991-92, on the taxes paid by individual property owners. This measure established that the property tax collected for non-school governments cannot exceed $10 per thousand dollars of real market value (RMV). In the area of Salem located in Marion County, overlapping tax rates for non-school governments equals $10.55 per thousand dollars of assessed value (AV). Because of the Measure 5 limitations, non-school governments in Marion County begin to see their tax collections proportionately reduced when AV is equal to 94.8 percent ($10 RMV limitation/$10.55 AV tax rate) or more of RMV. This loss of property tax revenue is known as compression and is not recoverable. Over the past three years, RMV for many properties has declined and the Citys loss to compression has increased from $197,000 in FY 2008-09 to what is anticipated to be $814,000 in FY 2012-13. If this trend worsens, without other off-setting revenues, the City will need to make further reductions in the General Fund.
$814,000 loss

B4

Beginning Working Capital Since FY 2009-10, the General Fund beginning working capital has been increased to help moderate the level of reductions needed to weather the prolonged economic slump. The chart below shows the beginning working capital at the beginning of each fiscal year, and how the balance grew or decreased by the end of that fiscal year. Decreasing balances result when actual operating costs are greater than current or new revenues. Beginning Working Capital/Ending Fund Balance $14.9 million to $17.6 million $17.6 million to $17.7 million $17.7 million to $14.2 million $14.2 million to $13.3 million

Fiscal Year FY 2009-10 FY 2010-11 FY 2011-12 proposed FY 2012-13 forecasted

Difference + $2.7 million + $.10 million -$3.5 million -$900,000

The Citys financial policy calls for the beginning working capital to be between 10% and 15% of current revenues each year. The beginning working capital for FY 2012-13 is projected to be approximately 14.7% of current revenues, falling to 13.7% the following year. Current General Fund revenues for FY 2012-13 are anticipated to be $96.8 million. Actual operating costs for FY 2012-13 are anticipated to be $97.7 million requiring the use of $900,000 of the beginning working capital for operating expenses. Assumptions for actual operating costs include using no more than $200,000 of the $2.5 million General Fund contingency and realizing 3% in cost savings from operations throughout the year. (Cost savings in operations result from unanticipated vacancies, lower than projected costs, overtime reductions, etc.) If we use more contingency or are unable to reduce costs by 3% during the year, we will need to draw down the beginning working capital to a greater extent. Maintaining beginning working capital and a contingency appropriation is necessary to ensure our ability to fund operations and to take advantage of unanticipated opportunities such as matching funds for grants or to respond to emergencies. The flood in January 2012 required use of $363,000 of the General Fund FY 2011-12 contingency to repair flood damage to parks. Operating Costs Operating costs began to exceed current revenues starting in FY 2011-12. If we continue to provide the current level of General Fund services into the future, the gap between operations costs and current revenues will widen until beginning working capital is exhausted in FY 2013-14. This trend, which is illustrated in the first graph on the next page, is not sustainable or supportable.

B5

Our strategy to keep operating costs in line with current revenue and maintain a beginning working capital balance of at least $10 million throughout the forecast period is illustrated below.

B6

This strategy required mid-year budget adjustments to reduce operating costs for the remainder of FY 2011-12; the impact of these reductions will continue throughout the forecast period. Absent significant and unanticipated revenue increases, additional expenditure reductions will be necessary in upcoming years. Operations costs increased by $4.45 million between FY 2010-11 and FY 2011-12, in part due to a $2.2 million increase in PERS rates. General Fund budgeted costs were projected to increase another $3.2 million in FY 2012-13. The General Fund five-year forecast, prepared last November, projected FY 2012-13 costs for the Citys current General Fund services to be $107 million. Our goal was to reduce that number to $103 million as a part of a three-year strategy to more closely align expenditures with expected revenue and provide financial stability into the future. The proposed budget meets the first-year goal. As a result of mid-year and proposed FY 2012-13 reductions, General Fund costs decreased by about $807,670 as compared to FY 2011-12 base expenses. Rather than operating costs increasing by 3%, they are budgeted at a 0.77% reduction. In the recommended FY 2012-13 budget, some department budgets have small increases, while other department budgets decrease. Looking forward, our challenge is to keep General Fund costs almost flat for three years through FY 2014-15. To do this, reductions will be necessary to offset cost increases, including the anticipated $1.7 million increase in PERS costs in July 2013. The adjusted five-year forecast anticipates reductions of $3.5 million in FY 2013-14 to hold budgeted costs at $103.3 million, and reductions of $3 million in FY 2014-15 to keep budgeted operations costs at $103.2 million. Staffing General Fund services are primarily provided by employees such as firefighters, librarians, police officers, accountants, parks maintenance staff and code enforcement officers. In FY 2012-13, 75% of General Fund costs are related to personnel expenses. Reducing General Fund costs to any significant degree involves cutting positions. The proposed budget reduces General Fund staffing levels from 681.35 to 639.5. The staffing changes in all funds are summarized below based on the service result area with which they are aligned. Due to the extent of needed reductions, all General Fund departments experienced mid-year reductions in personal service and/or materials and services accounts. The Police and Fire departments combined are approximately 60% of the General Fund operations costs. Reductions were required in Police and Fire because other General Fund operations budgets are not sufficient to absorb the full impact of the needed reductions and still maintain a viable level of service.

B7

City-Wide Impact to Service Areas Community Safety Police Services We continue to experience reductions in crime rates. 2011 marked the tenth year of declining Part I crime rates, dropping from a high of 12,819 in 2002 to 6,671 in 2011. In the last nine years, Part II crimes have declined from a high of 17,082 in 2003 to 11,793 in 2011. Calls for service have changed little over the last two years. The FY 2012-13 proposed budget for Police is $34.7 million, an increase of $111,400. Without position reductions, the Police budget would have increased by $1.1 million. The proposed budget reduces staffing by 10.75 FTE positions, including 5.0 FTE sworn officers and 5.75 FTE civilian positions. To avoid additional reductions in the number of sworn officers, the proposed budget includes a transfer of $256,990 from the Parking Fund to help support the Downtown Patrol Team for services within the parking district. Without the transfer, the downtown patrol team would have been eliminated. With the transfer, the team will be staffed with 5.0 FTE officers (reduced from 7). Additional impact from the elimination of sworn positions includes reducing a position from patrol, cutting two positions in the Drug Activity Response Team (DART) and combining DART with the Street Crimes Unit. The civilian positions eliminated are two records technicians, a crime analyst, and 1.75 FTE office assistant positions. The non-sworn position eliminations will result in less capacity in crime analysis, police records processing, and in administrative support to detectives. The Citys Community Oriented Police Services (COPS) grant is funding four officer positions that would have otherwise been eliminated. This grant can be extended to October 2014 to provide three years of funding. The proposed budget appropriates the full amount of the $7.47 million radio reserve and $1.73 million in new revenue to fund $1.5 million for annual operations and a total of $7.7 million for a new interoperable system $3.6 million for controlled equipment and $4.1 million for capital infrastructure and site development. Coverage and capacity requirements for a new system have been completed, and partnership opportunities are being evaluated. Following completion of the partnership selection process, contracts will be awarded and construction will commence. The goal over time will be a regional system with all Salem departments operating on a single interoperable radio system. The extent of interoperability with other agencies will be contingent on the partnership selection. Several police and fire agencies in Lincoln County are pursuing joining the Willamette Valley Communication Center (WVCC). Adding these agencies will reduce dispatch costs to city operations and all other agencies served by WVCC through the expanded sharing of operating expenses. Parking Services In order to maintain five officers on the Downtown Patrol Team, the proposed budget eliminates 7.0 FTE Parking Services security positions and transfers 1.0 FTE security
B8

position to the Library. Of the seven eliminated security officer positions, four were vacant for all of FY 2011-12. The City will no longer utilize contracted services for security to offset the position vacancies. The Downtown Patrol Team will provide services to the downtown area, including parking structures. Eliminating the non-sworn Parking Services security positions reduces civilian support in observing and reporting disruptive behavior in the downtown area. The downtown parking enforcement officers will assume some of this responsibility. Also eliminated in the proposed budget is a 1.0 FTE parking services manager position. Fire Services The proposed budget eliminates a division chief position from Safety and Special Operations and moves the Emergency Medical Services (EMS) trainer position into the EMS Fund. The budget also reduces staffing at the two least-busy fire stations, 11 and 8 to 40-hours per week during the peak demand period. The Citys 11 fire stations and contract ambulance provider, Rural Metro, respond to medical and fire calls every day on a systemwide basis. Fire Department staffing is reduced by a total of 7 positions in the FY 2012-13 proposed budget no layoffs occurred as a result of this reduction. Streets and Sidewalks Streets maintenance activities are funded primarily with the Citys allocation of state highway funds (gas taxes) and a portion of General Fund franchise fees. The transfer of franchise fees proposed for FY 2012-13 is $500,000. The proposed Transportation budget is 5.4% ($702,340) less than budgeted in FY 2011-12 due to the reduced transfer from the General Fund and the forecast of state highway fund allocations. The proposed budget eliminates a maintenance operator position in Signs and Sweeping and reduces maintenance projects. The inspection program for 759.5 miles of City sidewalks is complete. In FY 2012-13, the City will continue to meet our obligations for accessible ramps under the Americans with Disabilities Act and allocate an additional $552,000 for the repair of damaged sidewalks funded through state highway funds. Additional sidewalk work will be done in conjunction with Streets and Bridges Bond projects. In compliance with City Council directive, when sections of sidewalk built before 1992 are in good repair, the property owners are notified of the responsibility for future repair and maintenance of sidewalks along their property lines. To date, 10,159 property owners have had sidewalks transferred to their care. Sidewalk repairs are prioritized based on areas with the highest need. Building and Safety The Building and Safety Fund and operations are heavily impacted by the economy and by construction activity. Permit activity has decreased slightly over last year and building valuation has dropped significantly, which reduces permit revenue. Budgeted permit revenue for FY 2011-12 was $2.35 million; the proposed budget anticipates $1.73 million. Maintaining the level of staffing to meet industry needs and to comply with the fund reserves policy will require an increase in permit fees. This situation has been vetted with the Homebuilders Association and other trade groups and has received support. The proposed budget was developed without permit fee increases by reducing fund reserves. If fee increases are approved by the City Council prior to the final adoption of the budget, the budget revenues will reflect the change.
B9

Without permit fee increases, we will be required to further reduce staffing levels and slow the response to inspections and plan reviews over the next year. Since FY 2007-08, staffing levels in Building and Safety have fallen from 32 to 19. In the FY 2012-13 proposed budget, a project coordinator position is eliminated and a permit specialist position and a .5 FTE staff assistant position were added to absorb the parking permit work previously done in Parking Services Neighborhood Enhancement The proposed budget eliminates two code enforcement officer and 1.70 FTE staff support positions and reduces the 1.50 FTE staffing for neighborhood specialists to 1.0 FTE, which will be shared between the two current employees. These changes will result in longer response times for code enforcement complaints and reduce support to neighborhood associations. The voluntary staff neighborhood liaison program will be eliminated and neighborhood association newsletters will be sent electronically, rather than mailed. Lower priority will be set on responding to grass and weed calls unless they represent a fire risk, shopping cart calls, and to signs in the right-of-way. The current response time of responding to 94% of nuisance and junk calls within 4 days will be reduced to responding to 79% of the calls within 4 days. Flexible funds for neighborhood projects and communication will continue to be granted to neighborhood associations in varying amounts based on each areas population. Public Works Changes to Public Works Fund staffing include eliminating a maintenance operator position, which supports the sign crew, and adding a grant-funded traffic engineer position to meet workload demands. In the Water and Sewer Fund, the proposed budget includes adding an engineering technician and a dispatch supervisor. Livability Parks, Recreation New parks coming on line in the FY 2012-13 budget include the first phase of Battle Creek Park in South Salem, Hoodview Park in North East Salem, Eola Ridge Park in West Salem, and improvements to Fairmont Park in central Salem. The proposed budget includes funds for three Department of Corrections inmate crews. The proposed Parks budget eliminates three vacant parks maintenance worker positions and a project leader. The loss of these positions will result in a reduced level of maintenance in all neighborhood and community parks, except for sports fields and reservation areas. Maintenance levels in large urban parks are expected to remain at current levels. Recreation was moved to the General Fund in the proposed budget for accounting purposes. Recreation programs continue at current levels, except for aquatics programs. The proposed FY 2012-13 budget does not contain funds to support aquatics programs. As explained last year, changes to aquatics programs would be based on budget decisions and the availability of the school-district owned pools. At the time the proposed budget was assembled, information from the school district indicated that Walker Pool will not be available due to the need for expensive repairs. Olinger Pool may be available if the
B10

school district finds a third-party to operate the pool during the summer. If Olinger Pool is available to the public in the summer, City Council will receive a request to allocate $20,000 from General Fund contingency to help defray some of the costs of operating the summer aquatics program. The budget continues the summer parks program for children with tennis, basketball and soccer camps; the relay event; and free movies in Riverfront Park. The proposed budget allocates an additional $250,000 to repair flood damage to park bridges. It also includes $60,000 for Salem Park Improvement Program (SPIF) matches for projects funded by neighborhood groups. Center 50+ programs and operations remain unchanged in the proposed budget. Transient Occupancy Tax (TOT) TOT revenue is budgeted at $2,216,020, down from $2,238,900 in FY 2011-12. Contingency is budgeted at $100,000 compared to $205,500 last year. In line with City Councils goal to fund more of the parks and eligible facility work from this fund, several areas of the TOT budget are recommended for reductions. The proposed budget reduces funding to Travel Salem by $71,000, from $550,000 to $479,000. Repairs to city-owned historic facilities have been completed for the time being and that budget is reduced from $201,680 last year to $60,000. Funding allocated to Parks to maintain TOT-eligible historic and city landscape areas is increased by $173,740 from $351,260 in FY 2011-12 to $525,000 in FY 2012-13. The General Fund will support $140,310 of the remaining annual cost to maintain these parks and facilities. City facilities eligible for TOT funding include Riverfront, Bush Pasture and Wallace Marine Parks; the grounds at Deepwood House; Pioneer Cemetery; the Mill Race; the Pringle Creek Trail and the Jason Lee sign. Grant funding for major tourist attractions and cultural facilities, which include operating, special event and capital asset/improvement grants, are proposed to be reduced from $434,500 to $312,900. City administrative costs allocated to the TOT budget were reduced as well. The budget maintains our commitment to allocate $300,000 of TOT funds to the Salem Conference Center gain/loss reserve for future capital needs, as well as support to fulfill the Citys obligation to fund Conference Center marketing. The Conference Center has continued to operate in the black even during the economic slowdown and the facility is well-maintained. Library The proposed budget funds current hours and programs at the main library, but staffs the West Salem library branch for only six hours per week on Monday when the main library is closed. The Library budget eliminates 3.60 FTE positions that are vacant or will become vacant due to fiscal year-end retirements. One security position from Parking Services is transferred to the Library.
B11

Housing and Social Services Division Urban Development Funding allocated to non-profit social service agencies is recommended at $19,750 less than in the FY 2011-12 budget. The General Fund portion of the allocation is $415,000, while the Community Development Block Grant portion is $207,120. The Urban Development Department proposed budget eliminates a rehab specialist as the result of decreased funding from federal Housing and Urban Development sources. The City will receive a 30% reduction in the amount of HOME funds and a 10% reduction in Community Development Block Grant funding for the upcoming fiscal year. Planning Proposed budget reductions in the Planning Division include a planner position and a geographical information services (GIS) analyst position. The elimination of the planner position reduces the divisions ability to perform special studies and reduces support to both current and long-range planning. The GIS analyst position elimination also reduces support to the Planning Division. Environment Water, Wastewater, Stormwater Utilities The Water and Sewer proposed budget includes $49.15 million for operations, $24.09 million for debt service and $3.35 million in transfers for capital projects. In addition to providing operations related to safe drinking water, stormwater management and safe disposal of wastewater; the utilities build, replace and maintain infrastructure. As stated earlier, the stormwater utility 3-year implementation will begin in January 2013. At that time, program activities will begin to be funded with rates based on an impervious surface analysis of different categories of property. As the stormwater utility rates are phased in over three years, stormwater program costs will be completely removed from sewer rates and funded with stormwater rates. A rate increase proposal will be presented to the City Council in fall, 2012. Rate increases are necessary to fund needed capital improvement projects in water, wastewater and stormwater. Due to the level of debt from the wastewater treatment facility, the Citys plan for the next several years is to fund capital projects with cash. There are future capital needs in need of funding in each utility as detailed in the Capital Improvements Program adopted by City Council. Water, sewer and stormwater rates are based on the utilities financial plans that consider the capital needs of each system. The proposed budget includes additional funds for debris removal from all city streams and creeks in FY 2012-13. This project is necessary due to the January flood and to assist in preventing future flooding.

B12

Economic Development Urban Development Because of a decrease in activity in some urban renewal areas, the Urban Development Department proposed budget eliminates a half-time office assistant, a half-time administrative analyst, and a project manager who worked primarily on Mill Creek Corporate Center projects. The proposed budget continues support for the Citys commitment to economic development with financial support to the Strategic Economic Development Corporation to assist the city in marketing Salem properties and responding to requests for proposals for development. Of the $177,500 allocated for these services, $141,000 is being reimbursed from three urban renewal areas; the General Fund portion is $36,500. The proposed budget continues the allocation of $100,000 from the Parking Fund to perform additional projects and work in the downtown. As mentioned earlier, the Airport Master Plan has been approved by City Council. To manage the current workload at the airport and our efforts to develop additional property on the site, City Council approved adding an administrative analyst position. Public Works The Citys proposed budget includes funds to replace the Commercial Street Bridge, which adjoins the Civic Center property. Along with the bridge construction, which will take place over 2 years, a pedestrian walkway will link paths from the east side of Commercial Street through the Pringle Creek LLC property and onto Riverfront Park. Economic Improvement District An Economic Improvement District Assessment was renewed earlier this year and is estimated to yield $235,000. The Salem Downtown Partnership was awarded the contract for performing eligible work in the downtown assessment area. Central Services Proposed reductions to central services include: City Managers Office The elimination of a public relations / intergovernmental relations manager position is represented in the proposed budget. Seasonal dollars have been added to the budget for support during the legislative session. The City Managers office will also continue to share a position with Public Works to support public information needs. Legal The elimination of a legal assistant position will require duties to be distributed among remaining staff. This position elimination reduces support to attorneys.

B13

Administrative Services Treasury manager and treasury supervisor positions are eliminated in the proposed budget. The City is pursuing contracting with an investment advisory firm to assist with portfolio investments. Investment decisions will be made in line with state and city policy and by the Finance manager and Administrative Services director. Fleet Services Position eliminations include a swing shift supervisor, 2 mechanics, a parts specialist, and a .50 FTE staff assistant position. Work will be redistributed or eliminated. Information Technology (IT) and Facilities Services The IT project manager position has been eliminated. The division is currently reporting to the Human Resources director. The technical responsibilities and supervision of IT staff is performed by the IT manager. Parking Services and Municipal Court Cashier and data entry work for parking citations and parking permits has been performed by two cashier positions in Parking Services, which are eliminated in the proposed budget. The FY 12-13 budget moves the parking citation process to Municipal Court. This will result in judgments on parking citations and allows for improved collections. Cashier work related to parking citations will be absorbed by the current Finance cashiering staff. Parking permit processing will be performed by the PAC in Community Development. Non-Departmental FY 2011-12 expenditures in Non-Departmental included $500,000 for asset maintenance projects such as Information Technology servers, upgrades to software, and maintenance projects. In the proposed budget, it is recommended to allocate $65,000 to roof repair on the Parks Division building in the shops area and $42,500 for HVAC replacement in the same building. An initial allocation to replace the Library roof is budgeted at $192,500 the project is anticipated to cost approximately $600,000, so additional funding will be needed in the following budget years. The goal over time is to establish a facility maintenance rate sufficient to proactively maintain these assets The Non-Departmental budget also includes a $200,000 transfer to Fleet Services to be reserved for General Fund fleet replacement needs.

B14