HomeMy WebLinkAbout7.3 Fiscal Year 2010-2011 Budget Reductions ((if °' �
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" AGENDA STATEMENT
�� SENIOR CENTER ADVISORY COMMITTEE
� MEETING DATE: Ma y 6,2010
SUBJECT: Fiscal Year 2010-2011 Budget Reductions
Prepared by Paul McCreary, Assistant Director of Parks and
Community Services
ATTACHMENTS: 1. Staff Report to City Council on Fiscal Year 2010-2011 Budget
Reduction Recommendations
RECOMMENDATION: Receive report
FINANCIAL STATEMENT: The City Council directed Staff to include $1.5 million in citywide
budget reductions for Fiscal Year (FY) 2010-2011. This includes
changes to service levels that will reduce the net operating cost of
the Senior Center by$22,200 (5%).
DESCRIPTION: The economic recession has greatly impacted the City's budget in
the past two years and it is anticipated that the impact of the downturn will continue next year and in the
years to come. Staff anticipates a budget deficit of$3.1 to $4.6 million for FY 2010-2011. This does not
account for any further takeaways the State may impose to address its continuing budget problems.
The City has been dealing with the financial crisis head-on by:
• Cutting approximately$1 million in expenses at the 2008-2009 Mid-Year Budget;
• Cutting approximately$3 million in expenses for the 2009-2010 Fiscal Year Budget that included:
o Elimination of cost of living adjustments and performance pay adjustments for City employees;
o A reorganization plan that included significant layoffs and staff cuts;
o Decreasing operating budgets throughout the organization;
o Reducing the frequency of maintenance services such as street sweeping and landscaping; and
o Postponing some necessary street and infrastructure maintenance work funded with General Fund
monies.
These challenges are not unique to Dublin and are being experienced by almost all California cities and
counties.
COPIES TO:
ITEM NO: 7.3
G:\SRADVCMTE\Statements\2010\5-6-10 Item 7.3 FY 2011 Budget Reductions.doc
Fiscal Year 2010-2011 Budget Reduction Measures
At the Goals and Objectives Budget Study Session in February 2010 the City Council directed Staff to
identify reductions in addition to those made in the past two years that would have minimal to no impact
on services through an examination of the following four areas:
1. Utilize Economic Stability Reserve Fund
2. Defer or eliminate FY 2010-2011 General Fund Capital Projects where feasible
3. Reduce operations and hours for City buildings and facilities
4. Reduce operational service levels
As an additional savings measure the FY 2010-2011 Budget includes no salary increases for a second
consecutive year. The City will also continue to contain costs by contracting for services such as police,
fire and maintenance. Contracting and consolidation of public safety services with Alameda County
reduces expenditures for the City as the fixed cost of providing services are shared with other agencies.
Staff presented a report(Attachment 1) to the City Council at a special meeting on April 27 outlining the
proposed reductions for FY 2010-2011. At the meeting, the City Council approved over $1.5 million in
budget reductions for FY 2010-2011. Approximately $900,000 of the reductions will have no impact on
service levels. There are $640,000 in cuts that will reduce service levels. Although some service levels
will change, the City is not fully eliminating any service areas or shuttering any public facilities or parks
as is happening in many cities. Following is a summary of the overall budget reductions.
• General Government $83,967
• Public Safety $742,237
• Transportation $40,160
• Culture and Leisure Services $557,606
• Community Development $120,565
Despite making the budget reductions, the City still faces a $1.6 to $3.3 million deficit for the upcoming
Fiscal Year. The City Council directed Staff to balance the remaining budget deficit using the City's
Economic Stability Reserve Fund. This fund was established using budget surplus funds from prior years
when the City's revenues exceeded operating expenditures. With operational costs on the rise and the
City's revenues remaining flat, the Economic Stability Reserve Fund could be depleted within two years.
Therefore the reductions approved by the City Council were necessary to help bridge the City's structural
budget deficit.
Reductions to Culture and Leisure Services Budget
The City Council approved $557,600 in reductions to the Culture and Leisure Services Budget, which
includes the following operational areas:
• Library Services
• Heritage and Cultural Arts
• Park Maintenance
• Parks and Community Services
• Parks and Facilities Development
There is $182,880 in reductions that will not have an impact on service levels. This includes items such
as reduced purchase of materials and supplies, decreased conference and training, reduced tree
maintenance and turf aerating in parks, and reduced frequencies of other park maintenance tasks. This
category also includes the suspension of the Day on the Glen Festival, which had already been approved
by the City Council in March 2010.
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The remaining$374,725 in cuts will affect service levels as follows:
1. Library hours will be reduced by 14 hours per week. This brings the hours of operation back to the
level they were at during Fiscal Year 2005-2006. This will result in the Library closing on Fridays
and six additional hours spread across other days of the week. Additionally,the holiday lights will not
be hung on the roof of the Library during the winter holiday season and St. Patrick's Day.
2. Park Maintenance would be further reduced and may become noticeable to residents. This includes
reduction in turf fertilization, shrub pruning and replacement, leaf clean up,ball field renovations, and
elimination of bedding replacement. It should be noted that the level of maintenance to sports fields
will not be modified.
3. The Summer Concert series was eliminated. However the City's Winter Concert series and Outdoor
Movie nights will still be offered.
4. The Teen Website will be eliminated. Three Teen Sports Tournaments will also be eliminated.
5. The Dublin Swim Center season will be shortened to May 1 through Labor Day. Currently the pool is
open from Spring Break through the end of September.
In addition there are three budget reductions proposed for the Senior Center, which are summarized in the
following section.
Changes to Senior Center Programs and Services
For FY 2010-2011, the estimated net cost to operate the Senior Center and provide senior programs and
services is $459,000. The three changes approved for the Senior Center will reduce the net cost by
$22,200 (5%).
The first change is to reduce the frequency of the Senior Center newsletter from bi-monthly to quarterly,
similar to the Department's Activity Guide, which has been reduced to three publications per year. Staff
does not believe this will impact the effectiveness of the promotion of the Senior Center. Funds were
included to increase the use of electronic communications between issues of the newsletter, which is more
cost effective than printing.
The Trips and Tours program was suspended for the upcoming Fiscal Year. The Trips and Tours
program is a discretionary service, meaning it is nice to provide when additional funding is available.
Additionally the revenue from the trips does not cover the cost of providing the service, and only serves a
moderate number of Dublin residents. The time spent by the Recreation Technician planning and
implementing the van trips will be realigned to support the Senior Center Volunteer Program.
While the Trips and Tours Program is considered discretionary, the Lunch Program is considered an
important service. It expands and enhances the health of residents and serves a significant number of
Dublin residents. However the Lunch Program can be provided by an outside organization in a more cost
effective manner, without impacting the ability for seniors to have access to affordable and nutritious
meals. Similar to contracting for public safety services, the fixed cost to provide the meals would be
significantly less because they would be shared with many other senior dining sites in Alameda County.
Currently the City subsidizes each meal provided at the Senior Center by approximately $3.50 which
equates to $28,680 per year. Contracting for this service would decrease the subsidy by almost half.
Therefore Staff is pursuing an agreement with a non-profit organization in the Tri-Valley to provide the
meals at the Senior Center. This is the same way that the cities of Pleasanton and San Ramon provide the
senior lunch program in those communities. Although the details of the agreement are still being
developed, in concept, the service provider will cook the meals offsite and deliver them to the Senior
Center. If desired by the service provider, Staff could negotiate the use of the Dublin Senior Center
kitchen for food preparation and cooking as is being done at the Pleasanton Senior Center.
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The City will still need to schedule and coordinate volunteers to setup, handle payments, serve the meals
and wash dishes. A Senior Recreation Leader will be hired to coordinate the volunteers and meal orders
with the service provider. Customers will need to pre-order their lunch at least one day in advance by
calling, emailing or stopping by the Senior Center. It is anticipated that the cost of the meal would be
$3.25 for adults 60 years and older, and $4.75 for those under 60. This is similar to the fees currently
charged at the Dublin Senior Center,which are as follows:
Main Course(Whole Sandwich or Bowl of Soup) $2.00
Side Dish(Half Sandwich/Cup of Soup/Salad) $1.50
Dessert(per serving) $1.50
A-La Carte Meal Deal(1 main course/2 side dishes) $4.00
Hot Meal Deal $3.75
Staff has spoken with colleagues from the Pleasanton Senior Center and Castro Valley Senior Center who
spoke highly of the quality and nutritional value of the food provided. The service provider indicates that
the meals provided meet one-third of seniors' daily nutritional requirements. There is no extra salt added
and sugar-free desserts are available. They offer a wide variety of hot menu items, homemade soups and
a hearty chef's salad with meat or a vegetarian option. Staff anticipates the agreement would go into
effect on or around July 1, 2010.
RECOMMENDATION: Staff recommends that the Senior Center Advisory Committee
receive the report.
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