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Home My WebLink About2013 Proposed Budget PresentationBudget Crisis •For the fifth year in a row the City of Ithaca is facing a multi-million dollar budget deficit •When I took office in January the projected deficit for 2013 was $3 million Closing the gap •Past Budgets •Tax levy increase was 3.81%. •Fund balance appropriations •2009: $492,045 •2010: $950.000 •2011: $792,000 •2012: $995,000 •Fund balance remains above recommended levels, but just barely The Challenge •Use a new approach to close the budget deficit that slows the growth of property taxes in the City and uses far less from the fund balance. What we’ve done immediately •Sale of City Property •Refinanced of Debt •Changes to the City’s vehicle policy •Reassignment of IPD officers •Retirement Incentive •Grants and awards Budget Preparation •Common Council’s Direction •Public Input •City Employee Input Common Council’s Direction •Budget discussion and retreat •Monthly meetings with each pair of wardmates •Monthly budget discussions at the City Administration Meetings Common Council’s Direction Takeaways •Need balanced approach •Prefer to stay within tax cap •Improved management structure •Some fund appropriations ok – but not at current rate •“We cannot just keep doing what we’ve been doing - just with ten percent less. We need to think strategically!” City Employee input •Senior Staff Meetings •Employee Forums •Open Door Policy •Online Idea Submissions •Department Heads Budget Submissions City Employee Input Takeways •More proactive, streamlined management •Layoffs shift work, cause stress, and disrupt the workplace •Cuts should not be solely on the bottom •Parking revenue can be greatly increased •Sell City owned land that doesn’t serve public •“We cannot just keep doing what we’ve been doing - just with ten percent less. We need to think strategically!” Public Input •Campaign – 30 forums, thousands of doors •Open public budget forum •Social media •Individual constituent meetings Public Input Takeaways •Keep taxes as low as possible! •Improved management and accountability •Public safety, infrastructure investment and youth services are priorities •“We cannot just keep doing what we’ve been doing - just with ten percent less. We need to think strategically!” Other References •Examination of Financial Operations - New York State Comptroller’s Office. •Report of Departmental Operations - New York State Comptroller’s Office. •City of Ithaca Energy Action Plan 2012 •City of Ithaca Performance Measures Framework and Organizational Analysis Report - The Novak Consulting Group “We cannot just keep doing what we’ve been doing - each year with less personnel, higher taxes and nearly a million dollars per year from our fund balance. We need to think strategically!” How do we define a ‘strategic budget’? •“A strategic budget does not simply cut each department in the City equally.” •“A strategic budget doesn’t delay difficult choices for future elected officials.” •“A strategic budget - even in hard times - does move the City towards the following goals: increased accountability, a more inclusive budgeting process, a higher fundraising capacity” How do we define a ‘strategic budget’? • “A strategic budget does - even in hard times - make the investments that will pay off down the road.” • “A strategic budget is proactive! It anticipates future retirements and puts in place structures that will allow us to do more work with less people.” • “A strategic budget doesn’t cut just the folks at the bottom” Strategic Transformations •The New Planning, Building and Economic Development Department •The New Finance Department The New Planning, Building and Economic Development Department •I propose merging the Building and Planning Departments •The Building Commissioner will report to the Director of Planning •The new PBED will take over fire code inspections from the Ithaca Fire Department •Annual savings in excess of $130,000 within 2-3 years The New Finance Department •I propose merging the Controller and Chamberlain’s departments •The Chamberlain will report to the Controller •There is no immediate budgetary impact to the merger but the consolidation will allow for an annual savings of up to $230,000 within 3-5 years Strategic New Investments •Chief of Staff •Living Wage •Parking Director •Sustainability Coordinator •Grant Writing and Advocacy Chief of Staff •Recommendation. The City fund a Chief of Staff position effective June 1st, 2013 to help manage the internal functions of the City •Benefits. The City will, in the long term, see increased revenue and decreased cost as a result of more proactive management •Council will benefit from a longer and more inclusive budget process •The public will benefit from improved accountability with public performance measures and individual performance reviews •Budget impact. The estimated cost including benefits for the position beginning in June 2013 is $82,475. Living Wage •Recommendation. The City fund wage raises for any employees making less than a living wage effective July 1st, 2013 •Benefits. The City will finally become a living wage employer •Budget impact. The cost for 2013 is $44,000. Parking Director •Recommendation. The City fund a Parking Director effective April 1st, 2013 •Benefits. The City will, in the long term, see increased parking revenue •The public will have a more convenient parking experience •Budget impact. Cost, including benefits for 2013 is $81,464. Anticipated increased revenue from parking is $70,000 in the first year with greatly improved revenue in future years. Grant Writing and Advocacy •Recommendation. The City fund a contract line in the Planning Department to retain year-round grant writers and lobbyists. •Benefits. Increased capacity to bring state, federal and private dollars into the City •Budget impact. The estimated cost for the line in 2013 is $60,000. Strategic Reductions •25 vacancies left wholly or partially unfunded •A number of hourly reductions •Eliminated two Firefighter positions and one administrative position for a savings of $159,000 Closing the Gap 2013 •Tax Levy •2009-2012: 3.81% •2013: 2.72% •Fund Balance •2009: $492,045 •2010: $950.000 •2011: $792,000 •2012: $995,000 •2013: $250,000