Brief Overview of Priority Setting Process
Review of Consolidated Scorecard 2015 Budget Status Calendar of Upcoming Events Closing Statement
The Priority Setting
Process to this Point Departments
Public
Council has
submitted their
Listening
submitted their
lowest
Sessions &
completed
priorities
Work Sessions
scorecards
Where the Priority Setting Process is now
Council score
Council will
cards have been
meet for
consolidated
Consensus (Today)
The Next Step for Priority
Setting Adoption of
Two Public
2015/2016
Hearings
Budget Priorities
Start Priority Setting Review
for Utilities
Public Demand for Program or Service:
Mandate to provide program or service:
0. 1. 2. 3. 4.
0. 1. 2. 3.
4.
No identified demand or need is evident Limited demand or need is evident + no change in need/demand level Moderate demand or need is evident + need/demand level is slowly increasing Substantial demand or need for service is evident + need/demand level is increasing at a growing rate Significant demand or need for service + need/demand level is increasing rapidly
No local, state or federal requirement to provide the program or service. State or federal requirements on program or service level if the City elects to voluntarily provide the program or service City-mandated program or service established under the Port Angeles Municipal Code but with no State or Federal requirement to provide the program or service City-mandated program or service established under the Port Angeles Municipal Code + partial grant funding provided by the State or Federal government or non-General Fund/Utility resources City-mandated program or service established under the Port Angeles Municipal Code substantial (or totally funded) from non-city resources from either the state or federal government or private sector funding.
Core Mission Relationship:
0. 1. 2. 3. 4.
Alternate Service Providers:
0. 1. 2. 3. 4.
No clearly identified relationship to City or departmental mission; may provide evidence of an implied or tangential relationship to mission Legacy program offered by the City for a substantial period of time; stronger implied or tangential relationship to mission Evidence of direct relationship to mission is clearly seen; other programs or services provide overlapping service Strong direct relationship is seen with limited duplication or overlap of other similar programs or services Substantial evidence of direct relationship to City and departmental mission; no overlap or duplication of service from the City or outside service providers
No service provider is needed Alternate service delivery is available in Port Angeles Alternate Service delivery is available within Clallam County Alternate service provider is available outside of Clallam County No Alternate service provider is available.
GROUP 1: (Highlighted in Green) 1. Maintain Public Safety 2. Maintain Existing Infrastructure 3. Maintain Support Services for External & Internal Customers These are considered Council’s highest priorities and will not be reduced or eliminated except by Council consensus.
GROUP 2: (Highlighted in Yellow) 1. Public Safety & Prevention 2. Beautification & Quality of Life 3. Employee Wellness These programs may be reduced or eliminated if additional budget reduction measures are required.
Note: Payment to External Agency was grouped accordingly
GROUP 3: (Highlighted in Red) 1. Support to External Agencies 2. Internal Efficiencies & Low Priority Program Reduction
These programs are considered Council’s lowest priorities and will be the first to be eliminated or reduced to balance the budget if need arises.
PRIORITY SETTING - CITY COUNCIL SCORECARD SUMMARY GROUP 3: LOWEST PRIORITIES. FIRST ELIMINATED TO BALANCE BUDGET
•SUPPORT TO EXTERNAL AGENCIES: • #17 – Humane Society Services Agreement – 42 • #15 – PA Forward Committee Administrative Support – 37 • #33 – Financial Contribution to Feiro Marine Life Center – 34 • #3 – Health & Human Services Funding – 31 • #14 – Participation in Clallam County Economic Development Council – 29 INTERNAL EFFICIENCIES & LOW PRIORITY PROGRAM REDUCTIONS • #31-B – All Youth & Family Programs (including 31-A) – 39 • #9 – Prosecution of Minor Criminal Offenses – 38 • #32-B – Financial Contribution to the PA Fine Arts Center (including #31-A) – 34 • #13 – Lodging Tax Administrative Support – 19 • #6 - Contract Services for mailroom & Recycling – 17 • #1 – Annual Monetary Award for Employees - 13
GROUP 2: REDUCED IF ADDITIONAL BUDGET REDUCTIONS ARE REQUIRED
•PUBLIC SAFETY & PREVENTION • #22 – Technical Rescue – 60 • #23 – Emergency Management Coordination – 55 • #24 – Fire Prevention Services- 54 • #10 – Domestic Violence Victim Assistance Program – 53 • #18 – Parking Enforcement – 47 • #5 – Mobile Broadband (wireless Mesh) – 43
BEAUTIFICATION & QUALITY OF LIFE: • #28 – Vegetation removal/mowing right-of-way – 60 • #26 – Contracted Right-of-Way work – 58 • #34 – Beautification Program – 54 • #35 – City Property/Pocket Parks – 50
EMPLOYEE WELLNESS: • #2 – Wellness Fitness Facility/Health Program Reimbursements - 42
GROUP 1: HIGHEST PRIORITIES. CANNOT BE REDUCED WITHOUT COUNCIL CONSENSUS.
•MAINTAIN PUBLIC SAFETY: • #25 – Fire Floater Position – 81 • #21 – Patrol Officer – 80 • #19 – Smart Phones – 68 • #20 – Administrative Assistant –62 MAINTAIN EXISTING •INFRASTRUCTURE: • #27 – Contract Asphalt Repair – 77 • #30 – Street Crew – 73 • #29 – Curb painting/Street markings – 69 MAINTAIN SUPPORT SERVICES FOR EXTERNAL AND INTERNAL •CUSTOMERS: • #4 – Human Resource & Records Specialist – 75 • #12 – Attorney – Civil Division – 74 • #11 – Legal Records Specialist – 72 • #16 – Assistant Planner – 72 • #7 – Customer Service Front Counter – 71 • #8 – Accounting Technician – 71
Policy can be initiated to provide staff to act on the Council’s decisions regarding Low Priority Programs. Will programs be “phased out” over time? Or simply cut? Other ways to help external agencies Utility Rate Relief B&O Tax Credit Dump Day proceeds
Need to Clarify Misinformation The City is NOT: Broke Destitute Out of money
• The City does have budget challenges: • Potential changes by the state or federal government can: • Remove existing funding • Add new costs
• A struggling local economy that has not fully recovered from the Great Recession • Utility rates that are very comparable to other communities but consume more household income due to reduced family income in Clallam County
Summary • General Fund: • Revenues: • Significant concerns regarding electric utility tax • Other tax revenues running ahead of budget
• Expenditures: • Q1-2015 expenditures under budget • Have not paid out labor agreement settlements for AFSCME, IUOE • No settlement yet with Teamsters for Police + Dispatch/Police Records
• Other Funds: • In general, operating with normal budget variance for Q1-2015
Defining the Problem for the General Fund
• Revenue-centered problem: • Significant decline in Electric Utility Tax: • 2015 Beginning Budget: • 2015 Revised Estimate: • Variance:
$2,418,800 $1,871,000 $547,800
• Other revenues are positive: • Additional sales & property tax • Additional permit revenue • Other enhanced revenues
• No expenditure reductions “have been taken” to allow for better understanding of the challenge
Beginning Revenue Shortfall – General Fund
Revenues Expenditures Net
2015
2015
Variance
Variance
Beginning
Preliminary
$$
%
Budget
Revised
$20,065,000
$19,814,600
($250,400)
-1.25%
20,065,000
20,065,000
$0
0.00%
$0
($250,400)
($250,400)
What Are the Changes to Date? • Revenue Reductions: • • • •
Electric Utility Tax Gateway Facility Rental Sr. Center Rental TOTAL Rev. Reduction
$547,800 1,000 3,000 $551,800
• Revenue Enhancements: • • • • • • • • • •
Property Tax Regular Sales Tax EUGA Sales Tax Criminal Justice Sales Tax Other Tax Revenue Permit Revenue Intergovernmental Rev. Fees & Charges Misc. Revenue TOTAL Additional Rev.
$24,300 70,000 20,000 19,000 54,800 42,700 7,500 48,000 15,100 $301,400
Un-Assigned Fund Balance – General Fund $6,000,000
35.00%
30.00%
$5,000,000
25.00%
$4,000,000 20.00%
$3,000,000 15.00% $2,000,000
10.00% $1,000,000
5.00%
$0
0.00% 2006
2007
2008
2009
2010
Un-assigned F/B
Un-assigned F/B % of Gen. Fund
2011
2012
2013
2014
% of Gen. Fund
2006 3,730,202
2007 4,949,255
2008 4,398,023
2009 4,273,149
2010 4,242,794
2011 4,421,104
2012 3,859,596
2013 5,399,179
2014 4,910,849
23.27%
31.11%
24.11%
24.79%
24.92%
24.07%
20.91%
29.38%
24.64%
2015 n/a n/a
April April 28th: No Meeting
May May 5th: Public Hearing #1 & 1st Reading (GF/Street) May 19th: Public Hearing #2 & Adoption (GF/Street) May 26th: Priority Setting & Rates Workshop – 5:00-7:00 pm
June June 9th: Priority Setting & Rates Workshop - 5:00-7:00 pm
July July 28th: TBD
August August 4th: Public Hearing & 1st Reading (Utility Rates)
What is the Next Step City Manager
2015
Council achieves consensus on City priorities; then
Council will
and staff
refine/revise the budget to reduce spending in line with City priorities; then
2016
approve refined/revised 2015 Budget via Budget
Amendment #2
City Manager and
Council will
staff will draft
review/revise
2016 Budget
2016 Goals and
Goals and
Objectives prior to
Objectives in line
staff initiating
with Council
2016 Budget
priorities
development
A little food for thought:
“We don’t drift in good directions. We discipline and prioritize ourselves there.” ~ Andy Stanley The Principle of the Path: How to Get from Where You are to Where You Want to Be.
PRIORITY SETTING - CITY COUNCIL SCORECARD SUMMARY GROUP 3: LOWEST PRIORITIES. FIRST ELIMINATED TO BALANCE BUDGET
•SUPPORT TO EXTERNAL AGENCIES: • #17 – Humane Society Services Agreement – 42 • #15 – PA Forward Committee Administrative Support – 37 • #33 – Financial Contribution to Feiro Marine Life Center – 34 • #3 – Health & Human Services Funding – 31 • #14 – Participation in Clallam County Economic Development Council – 29 INTERNAL EFFICIENCIES & LOW PRIORITY PROGRAM REDUCTIONS • #31-B – All Youth & Family Programs (including 31-A) – 39 • #9 – Prosecution of Minor Criminal Offenses – 38 • #32-B – Financial Contribution to the PA Fine Arts Center (including #31-A) – 34 • #13 – Lodging Tax Administrative Support – 19 • #6 - Contract Services for mailroom & Recycling – 17 • #1 – Annual Monetary Award for Employees - 13
GROUP 2: REDUCED IF ADDITIONAL BUDGET REDUCTIONS ARE REQUIRED
•PUBLIC SAFETY & PREVENTION • #22 – Technical Rescue – 60 • #23 – Emergency Management Coordination – 55 • #24 – Fire Prevention Services- 54 • #10 – Domestic Violence Victim Assistance Program – 53 • #18 – Parking Enforcement – 47 • #5 – Mobile Broadband (wireless Mesh) – 43
BEAUTIFICATION & QUALITY OF LIFE: • #28 – Vegetation removal/mowing right-of-way – 60 • #26 – Contracted Right-of-Way work – 58 • #34 – Beautification Program – 54 • #35 – City Property/Pocket Parks – 50
EMPLOYEE WELLNESS: • #2 – Wellness Fitness Facility/Health Program Reimbursements - 42
GROUP 1: HIGHEST PRIORITIES. CANNOT BE REDUCED WITHOUT COUNCIL CONSENSUS.
•MAINTAIN PUBLIC SAFETY: • #25 – Fire Floater Position – 81 • #21 – Patrol Officer – 80 • #19 – Smart Phones – 68 • #20 – Administrative Assistant –62 MAINTAIN EXISTING •INFRASTRUCTURE: • #27 – Contract Asphalt Repair – 77 • #30 – Street Crew – 73 • #29 – Curb painting/Street markings – 69 MAINTAIN SUPPORT SERVICES FOR EXTERNAL AND INTERNAL •CUSTOMERS: • #4 – Human Resource & Records Specialist – 75 • #12 – Attorney – Civil Division – 74 • #11 – Legal Records Specialist – 72 • #16 – Assistant Planner – 72 • #7 – Customer Service Front Counter – 71 • #8 – Accounting Technician – 71