ACTION REQUESTED:
Title
Communication from the City Manager with a PRESENTATION of the MODIFIED 2018 MID-YEAR BUDGET ADJUSTMENTS with a Request to RECEIVE AND FILE
Body
BACKGROUND: On May 22, 2018, the Finance Director presented the First Quarter 2018 Financial Report. In June, Staff sent Council a memo that outlined a recommendation that City employees, other than sworn Police and Fire and Emergency Communications staff, take 88 hours without pay, before the end of the year, beginning as early as the end of July. The second quarter financial information to the City Council on July 24, 2018, still identified $605,443 of cuts that needed to be made in the General Fund to meet the adopted spending plan of Council. Following the input from Council, and the bargaining units, staff is modifying the recommendation to include several layoffs and not filling vacant positions. The modification will still require furloughs, but the number of furlough hours would be reduced from 88 to 40. In addition, if employees have available vacation time, they may use 8 hours of vacation time to reduce the unpaid hours to 32. All furloughs would be taken between Labor Day and Veteran’s Day, and City Hall would not close as originally envisioned.
FINANCIAL IMPACT: Over the past two years, the undesignated General Fund Balance has dropped from $15 million to just over $3 million. The City needs to rebuild its reserves while still maintaining as many services as possible.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: The City Manager has the duty under the City Code to “See that the city expenditures do not exceed amounts available for expenditures.” By implementing this modified plan, the Manager is executing his duties under this provision of the City Code.
IMPACT IF DENIED: If a majority of the Council directs the Manager not to implement this modified plan, additional layoffs would be required to meet the 2018 Budget.
ALTERNATIVES: Council can direct the Manager to not implement this plan, or to modify the plan as presented.
EEO CERTIFICATION NUMBER: NA
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Keep taxes and fees competitive.
2. Invest in our infrastructure and transportation.
3. Have an efficient government.
DEPARTMENT: City Manager's Office