HomeMy WebLinkAboutMayor's Budget Message for 2016.pdf
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In fact, we need to replenish fund balance to remain at a comfortable operating level. The current
estimated 2016 budget gap is approximately $700,000. This means that we need to make further
changes to our operating activity by way of increasing revenue sources and reducing our expenses.
In recent years we’ve cut non-personnel costs as we attempted to spare our workforce from
reductions. Our cuts in the non-personnel accounts have been significant over the last few years,
but now, most of those costs can no longer be made and in some cases are already cut too low.
Also, in recent years we have delayed or unfunded some positions and accounts, but have avoided
the serious staff reductions.
It now appears, based on our current estimates, that to achieve a balanced budget for
2016 we must keep department budgets flat. Please submit a 2016 budget that reflects a zero
percent change in operating costs which include personnel, equipment, administrative and
program costs.
In 2015, we continued to make changes to personnel costs with the unfunding of positions, weekly
hour reductions and retirements.
I ask that all departments submit a final 2016 departmental budget, with all detail, by August 1,
2015. We ask that you make four copies of your proposal. Please submit two final budgets to the
Mayor’s Office and two to the Controller’s Offices. The final departmental budget submittal will
also be shared with the Common Council. During August you will be scheduled to discuss your
budget submittal with the Mayor, Chief of Staff and Controller.
As we have been talking in recent years and during the previous employee forums, there are many
items that continue to place stress on our city budget including; continued high pension costs from
New York State; high health insurance costs; high debt service costs; continued high labor costs;
rising insurance claims and litigation costs; higher fuel costs; property tax cap; shrinking fund
balance; uncertain sales tax collections; stagnate state aid; continued high property tax exemption
rate and many revenues that are not keeping pace with rising costs. The positive news is that local
development continues to be active but also places added strains to our resources. It is this mix of
mostly negative activity that continues to give us financial challenges and instability moving
forward.
We continue to face the most difficult financial period we have seen in years. We need to look to
our operating structure to make on-going changes that will allow the city to survive this period,
but still provide the tax payer with an adequate level of service. The tax burden already placed on
the city taxpayer is great and our ability to increase the property taxes moving forward is limited.
We have to carefully look at staffing levels and services provided to find a balance that works for
this community. There are positive signs in the community that reflect an optimism of recovery for
the city. Sales tax is still very uncertain, but slowly trending upward. We still have some surplus
property to sell that can give us some infusion of revenue, not only for the one-time sale, but also
with on-going property taxes. The process of selling property is time consuming. Private
development seems to be active with many projects in and around the city that will spur job
growth and give us future revenue through property and sales taxes. The full positive impacts of
recovery may not be fully felt for another few years. So it’s important for departments to work
together and cooperate as one to find the necessary changes to make us a stronger community in
the end. We need to find enhanced revenues and operating cost reductions at all levels to provide
the funds to balance our budget for 2015 and beyond.
I ask all of you to continue looking for additional savings in our budget. Continue to take a hard
look at each of your operations and make recommendations for efficiencies in personnel and
possible service reductions or revenue enhancements that give us the opportunity to improve
operations in the future. If you have any questions at all, please do not hesitate to contact me.
Don’t wait until August, ask now. I’m free to discuss any and all of your ideas, questions and
concerns. Together we can make a difference.
2016 Budget development details:
1. A 0% or flat operating budget is required. Your operating budget includes personnel, equipment,
administrative and program accounts. Make sure these cuts are real. To clarify, your overall budget
must be flat as compared to 2015. You will need to incorporate any salary increases contractual or
other, into the flat budget. This means the budget reductions in some cases will need to be greater
than 0% to end up at a net 0% budget. Due to recent cuts in the non-personnel accounts we expect
most of your reduction will come from the personnel accounts. (i.e.: if your 2015 budget for
personnel, equipment and administrative and program expenses totals $250,000, 0% of the total is $0,
your total 2016 budget would need to be $250,000).
2. For employees not part of the CSEA Compensation Plan, and who do not have contracts in place,
please use a 0% increase for the 2016 wage calculations. For Management employees, please use the
management comp plan for the 2016 wage calculations. For employees who are part of the CSEA
Compensation Plan, please use the appropriate increases per the agreement. The Fire Fighter
Association, Chief Officers Unit, Police Benevolent Association and Executive Unit are also without
contracts for 2016, please use 0% increase for the 2016 wage calculations. Be sure, if employees are
moving on a step basis for 2016, that any step increases are included. Human Resources or the
Controller can help with the calculations if needed. To assist you, our Chief of Staff, Kevin
Sutherland, will send you a current list of positions and salaries for your department by July 2nd.
3. The 2016 Budget submissions, at minimum should include:
o Brief description of the services your department provides to the city;
o Budget introduction which summarizes your budget and highlights any major changes to the
budget; include any possible retirements or staff changes;
o Detail of personnel, including listing by name, title, hire date, longevity, 2015 salary, 2016 projected
salary, accounts to be charged for each staff member (Kevin can help you with this if needed);
o Summary listing of all department account; 2014 expended, 2015 budget, 2016 proposed budget;
o Detail listing of accounts and what is included in each (i.e.: account 5405
o Telephone – includes all telephone charges needed for current staff levels, include cell phones);
o For departments that include program budgets – YB, GIAC, Fire, and Police – have a summary total
for each account and include detail for each program number;
o If applicable, please include any possible 2016 revenue adjustments for your department. Include
possible revenue projections for 2016 and a schedule on when the revenue increase could be
implemented. Consider the market value of the item and its relevance to city programs;
o If applicable, departments requesting staff decreases please include any possible service reductions
as a result of the staffing change.
o If applicable, departments requesting staff increases please include any possible cost reductions
associated with the staffing increases (i.e.: one additional staff member would decrease overtime by
$20,000);
o Please provide detail of your accounts for equipment and contractual activity (i.e.: fees for
professional services should indicate what type of professional services are performed and the cost
for each);
o Any special requests or needs beyond the 0% should come in the form of a request above the
mayor’s budget (attached). Please fill out one form for each type or group of requests. If we are able
to find room in the budget, I will look to incorporate them. The budget that I present to the public
will include these requests showing what’s in the Mayor’s budget and what isn’t.
o We continue to try and standardize the summary budget submittal. Please be sure the Budget
summary is no longer than five pages. The detail, especially for the larger departments, is still
needed for the Controller. The Budget Summary should be organized as follows: Pages 1-2; General
Department overview including employee data from above, narrative and top accomplishments
during the last year; pages 3-4; Account summary and any highlights for each account; page 5; Note
any special requests or department changes and/or revenue activity above the 0% budget (a
summary list with total dollar amounts of the requests above the mayor’s budget).
Common Council continues to express interest in providing departments with input into the
budget creation process on an annual basis. Common Council administered another survey
amongst themselves to assist in providing input into the 2016 budget. Council would like each
Department Head to consider developing a 2016 budget within the following constraints:
1. A budget that minimizes the use of fund balance to balance the 2016 budget gap.
2. A budget that keeps the tax levy at or below the cap, but could possibly see reason to override
the cap if it avoided further reducing the City’s fund balance.
3. A 2016 Capital Project budget that would invest more in replacing and updating the current
infrastructure rather than building new.
In addition, Common Council has suggested that departments continue to look for new ideas to
increase revenue during the 2016 budget development. Please review your department’s current
City operations for additional efficiencies, consolidations, cost savings and shared service
opportunities.
Again, the final departmental budget should be submitted to the Mayor and Controller by August
1, 2015. If you have any questions about your department’s budget before or after you submit it,
please consult with my office and/or the City Controller.
Requests Above Mayor’s 2016 Budget
Purpose/Short Description: ___________________________________________________________________
Total Amount: ____________________
Priority: _________
Is this request Maintenance of Effort or a New Initiative? __________________________________________
Reason for Request:
Effect if not funded:
Where to budget:
Functional Unit Account Project Code Amount Type of Request