FROM: Mary J. Bradley, Director of Finance

THROUGH: Robert S. LaSala, City Manager

SUBJECT: Vice Mayor Risch Questions Regarding Budget Proposal by Council Member Fowler

DATE: June 16, 2003

This memo responds to the five questions raised in an Email dated June 15, 2003, by Vice Mayor Risch in response to Council Member Fowler’s "Proposals for Budget Action" Email dated June 12, 2003.

The elimination of the OES Lieutenant position or possible replacement with a non-sworn position was discussed with Council at a study session but never submitted as part of the Recommended FY 2003/2004 Budget. The actual cost savings of totally eliminating the Lieutenant amounts to $157,738. Please refer to the memo from the Director of Public Safety to the City Manager dated June 16, 2003, for a complete description of the impact this reduction would have on the Department of Public Safety.

Please refer to the memo from the Director of Public Safety to the City Manager dated June 16, 2003, for a complete description of the impact this action would have on the Department of Public Safety.

Please refer to memos from the Director of Human Resources and the Deputy City Manager to the City Manager dated June 16, 2003 for descriptions of the respective impacts of these changes.

a, b, c. Please see my memo to the City Council dated June 16, 2003 regarding Council Member Fowler’s proposal to convert the set asides to reserves.

d. Budget Modifications – Vice Mayor Risch’s analysis of the seventeen budget modifications that occurred in the last four fiscal years affecting the Fiscal Uncertainties line item was accurate except for one thing: the Community Feedback Options budget modification was in the amount of $8,800, not $5,000. There have been no additional budget modifications affecting Fiscal Uncertainties over the timeframe reviewed by Vice Mayor Risch.

e. Staff believes that the $538,000 average per year of projects funded from Fiscal Uncertainties calculated by Vice Mayor Risch is correct.

f. Based on the four year history detailed by Vice Mayor Risch, the equivalent of $75,000 per year in the Fiscal Uncertainties set aside would not meet the Council’s funding needs at the current level.

As Vice Mayor Risch indicated, the reduction package included in the 6-Point Action Plan recommended that $500,000 from the Fiscal Uncertainties set aside and $750,000 from the Public Facilities Space Issues set aside be used to help address the budget crisis. The Public Facilities Space Issues set aside was reduced by $750,000 per year on a levelized basis. (Council will recall that it was previously a decreasing amount over the 20 year plan.) Additionally, the Fiscal Uncertainties set aside was reduced by slightly more than the $500,000 per year, and in FY 2003/2004 and FY 2005/2006 it was further reduced to fund the increased cost of elections.

Back to RTC attachment