HomeMy WebLinkAbout2003-07-28 City Council (5)BUDGET
’03 - ’05 City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
JULY 28, 2003 CMR:380:03
FINANCE COMMITTEE RECOMMENDATIONS
COUNCIL RELATED TO 2003-05 BUDGET FOLLOW-UP
TO
This is an informational repol~ and no Council action is required.
BACKGROUND
The City Council adopted the 2003-04 budget, along with the 2004-05 "in-concept"
spending plan, on June 16, 2003. While many of the 2003-05 Finance Committee
recommendations were incorporated into the Adopted Budget, there were several items
held over for further discussion by the full Council. The Council directed staff to
agendize at a subsequent Council aneeting completion of the discussion of these issues.
DISCUSSION
Staff has begun work on many of the Finance Committee recommendations made during
the 2003-05 budget process. In conjunction with the City Auditor’s proposed 2003-04
work plan, staff will add a number of new items to the Finance Committee’s "Status of
Referral Items in Committee" memorandum. Working with the City Auditor’s Office,
staff is using the following motions passed by the Finance Committee during 2003-05
budget deliberations as a guide in developing its work plan for the year:
Finance Colmnittee recommends staff incorporate into the 2004-05 budget, the
goal of funding the Infrastructure Reserve in future years as follows: $1.0 million
in 2004-05, $2.0 million in 2005-06.
Finance Committee recolmnends that staff return to the Finance Committee by the
end of September 2003 with a plan for how Council will significantly reduce the
unfunded liability in retiree health care costs.
¯Finance Committee recommends that staff return to the Finance Committee by
September 2003 with a plan to work with major cities within the City’s labor
CMR:380:03 Page 1 of 3
market area with the objective of appropriate control of long-term growth of
benefits and medical costs consistent with good labor practice.
Finance Committee recommends that staff return to the Finance Committee by
midyear 2003-04 with a citywide organizational structural review, which includes
a review of all management/supervision positions of four (4) or fewer direct
reports. The first phase of this review will focus on the General Fund and Internal
Service Funds. The City Auditor has agreed to conduct this review and will report
directly to City Council on her findings.
¯Finance Committee recommends staff return to the Finance Committee with
information on the status of the External Services Fund at midyear 2003-04.
Finance Committee recommends staff return to the Finance Committee by late
Fall with information on the cost analysis of street maintenance and comparison of
cost with neighboring cities (e.g., Santa Clara).
¯Finance-Committee recommends staff return to the Finance Committee by 6/30/04
with a plan toenforce noise abatement.
Finance Committee recommends staff return to the Finance Committee by
12/31/03 with various funding options for the.highest priority storm drain Capital
Improvement Program projects and provide justification for their prioritization.
Finance Committee recommends staff return to the Finance Committee by late
Fall with information on auditing the City fleet. Any budget adjustments resulting
from this audit will be incorporated into the 2003-04 midyear report.
Finance Committee recommends that the Community Services Department (CSD)
a) evaluate and recommend how to increase the variance between resident and
non-resident fees in CSD prior to the 2003-04 mid-year; b) determine how the
hours available to Seniors who use discount golf cards can be extended and
specify any fiscal impacts that may result; and c) report on the applicability of
adding a non-resident junior golf fee. Any adjustment to fees should be
incorporated into the 2003-04 midyear report.
RESOURCE IMPACT
Budget implications resulting from the varied items noted in this report will be included
in the midyear 2003-04 report to Council or in a future budget process. It is anticipated
that the goal of these additional efforts will result in new revenues for the City or areas
for additional cost savings.
CMR:380:03 Page 2 of 3
PREPARED BY:
CHARLES PERL
Budget Manager
DEPARTMENT HEAD APPROVAL BY:
CITY MANAGER APPROVAL:
CARL YEATS
Director of Services
EknL’Y HAR~SON
Assistant City Manager
CMR:380:03 Page 3 of 3