HomeMy WebLinkAbout2004-12-14 City Council (5)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTN:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:DECEMBER 14, 2004 CMR: 515:04
SUBJECT:CRITERIA FOR PRIORITIZATION OF SERVICES
RECOMMENDATION
Staff recommends the Finance Committee review and comment on the attached Program/Tier Table
(Attachment A). Its contents will be used as part of the Citywide Service Prioritization Matrix for
the 2005-07 General Fund Operating Budget development process.
BACKGROUND
The updated Long Range Financial Plan (LRFP) for 2005-15 shows that the City of Palo Alto faces a
$5.2 million General Fund Operating Budget structural deficit for 2005-06. The LRFP also indicates
that if this deficit is not corrected in 2005-06, the trend of structural deficits will continue over the
next nine years. Over the past four years, the City of Palo Alto has utilized a variety of solutions
and strategies to balance the budget without significant impacts on service levels. Based on the
continuing trend of General Fund operating deficits, staff is recommending that a methodology be
developed that will provide a prioritization of citywide services and service levels. This
methodology will be used by staff to recommend service reductions to eliminate projected deficits.
DISCUSSION
Staff has developed a weighting system to prioritize City programs and services. Attachment A
(Program/Tier Table) shows this weighting system. All General Fund operating functions/programs
by department will be listed and prioritized based on the criteria in this table. The Tier Type is a
numeric-weighting factor used to determine whether a program/service is.more or less essential. At
the Finance Committee meeting, staff will provide a rationale for the different tiers and discuss our
proposed process. Staff looks forward to the opportunity of discussing the criteria with the Finance
Committee and Council. Based on the Tier, staff will recommend which, and at what level, services
should be reduced or eliminated. Once the matrix has been completed, staff will return to the
Finance Committee with a prioritization of all General Fund services.
CMR:515:04 Page 1 of 2
POLICY IMPLICATIONS
This report has no policy implications at this time. Policy decisions on budget or service reductions
will be identified and made during the upcomingbudget process.
RESOURCE IMPACT
This report does not result in an immediate resource impact. The impact will not occur until Council
provides input on the prioritization matrix and staff subsequently recommends service level
reductions to Council.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A:Program!Tier Table
PREPARED BY:
CITY MANAGER APPROVAL:
-/~./{RLYEATS
/Director, Administrativ~~.~s
[LY HARRISON
Assistant City Manager
CMR:515:04 Page 2 of 2
ATTACHMENT A
1
2
2
2
2
3
3
3
Essential Service (encompasses Health and Safety and Legal Mandate)
Council Top 5 Priority/Milestone
Enhances Productivity/Customer Service
Revenue Generating/Self Supporting/Allocated Cost
Necessary for Proper Organizational Management
Comprehensive Plan Policy or Program
Program targets children!teens/seniors
Other