1 FISCAL YEAR 2009-2010 PROPOSED BUDGET City of Costa Mesa Budget Study Session June 9, 2009

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FISCAL YEAR 2009-2010 FISCAL YEAR 2009-2010 PROPOSED BUDGETPROPOSED BUDGET

City of Costa MesaCity of Costa Mesa

Budget Study Session

June 9, 2009

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BUDGET STUDY SESSIONBUDGET STUDY SESSION

Study Session Agenda:– Overview of Proposed FY09-10 Budget– Review Budget Balancing Strategies and

progress towards implementation– Review Service Impacts from Budget

Cuts to address Operating Deficit – Questions/comments from City Council Questions/comments from City Council

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FY09-10 Proposed Operating FY09-10 Proposed Operating and Capital Improvement and Capital Improvement

BudgetBudget Represents Management’s Represents Management’s

Recommended Budget to;Recommended Budget to;

– Address City Council’s priorities Address City Council’s priorities withinwithin

– Existing Financial Constraints toExisting Financial Constraints to– Fulfill the Service Requirements of Fulfill the Service Requirements of

the Community.the Community.

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Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget Nov. 08 Study Session $8.4m cuts Dec. 08 Budget K/O 5% A.T.B. Feb. 09 Dept. Hearings Addtl.

5% Feb. 09 Mid-Year CSS F.B. to $11m Apr. 09 CSS 10 B.D.S. $19m June 09 Budget Submission FB $14m June 16 Budget Adoption

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Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget Gap between “expectations” and Gap between “expectations” and

“financial reality” has gradually “financial reality” has gradually widened over past ten years.widened over past ten years.– $11.5 added annually in new programs $11.5 added annually in new programs

and services over past ten years.and services over past ten years.– No new revenues to fund growth in No new revenues to fund growth in

servicesservices– Coupled with inflationary increases in all Coupled with inflationary increases in all

other expendituresother expenditures

Coupled with effects of a prolonged Coupled with effects of a prolonged severe economic downturn. severe economic downturn.

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Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget

Unlike in prior years where focus Unlike in prior years where focus was on expanding programs and was on expanding programs and service,service,

Focus is on scaling back Focus is on scaling back expectations and service levels to expectations and service levels to level that is supportable within level that is supportable within current fiscal constraints. current fiscal constraints.

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Challenges Faced in Challenges Faced in Developing FY09-10 Proposed Developing FY09-10 Proposed BudgetBudget

Proposed budget represents Proposed budget represents largest single year reduction in largest single year reduction in operating costs in City’s history.operating costs in City’s history.

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BUDGET SUMMARYBUDGET SUMMARYAll Funds All Funds (including transfers)(including transfers)

FY 09-10 Estimated Revenues $ 114,388,526FY 09-10 Estimated Revenues $ 114,388,526

Utilization of Fund Balance 4,083,237Utilization of Fund Balance 4,083,237

FY 09-10 Total Resources 118,471,763FY 09-10 Total Resources 118,471,763

FY 09-10 Appropriations 118,471,763*FY 09-10 Appropriations 118,471,763*

*18.38% reduction from FY08-09 Adopted Budget*18.38% reduction from FY08-09 Adopted Budget

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TOTAL OPERATING TOTAL OPERATING BUDGETBUDGETAll FundsAll Funds

Proposed FY 09-10Proposed FY 09-10 $ 112,064,743 $ 112,064,743

Adopted FY 08-09Adopted FY 08-09 128,440,254 128,440,254

Amount of Amount of DecreaseDecrease $ (16,375,511) $ (16,375,511)

Percent of Percent of DecreaseDecrease (12.75 %) (12.75 %)

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TOTAL CAPITAL TOTAL CAPITAL IMPROVEMENT BUDGETIMPROVEMENT BUDGET - - All All FundsFunds



Amount of DecreaseAmount of Decrease $ (6,286,457) $ (6,286,457)

Percent of Decrease Percent of Decrease (56.38 %) (56.38 %)

1111

CIP FUNDING SOURCECIP FUNDING SOURCE Five-Year Historical Five-Year Historical ComparisonComparison

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TOTAL APPROPRIATIONSTOTAL APPROPRIATIONSAll FundsAll Funds

FY 08-09Adopted

FY 09-10Proposed

18.38%

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TOTAL APPROPRIATIONSTOTAL APPROPRIATIONSAll FundsAll Funds



Amount of Decrease Amount of Decrease $ (26,684,168) $ (26,684,168)

Percent of Decrease Percent of Decrease

(18.38 %)(18.38 %)

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TOTAL APPROPRIATIONSTOTAL APPROPRIATIONSBy Fund TypeBy Fund Type

Total $118,471,763

1515

TOTAL RESOURCESTOTAL RESOURCESGovernmental Funds Governmental Funds OnlyOnly

Total $112,306,099

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TOTAL APPROPRIATIONS TOTAL APPROPRIATIONS Governmental Funds Governmental Funds OnlyOnly

Total $112,306,099

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DISTRIBUTION OF APPROPRIATIONSDISTRIBUTION OF APPROPRIATIONSBy Major Service Category By Major Service Category - All Funds- All Funds

Total $118,471,763

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DISTRIBUTION OF APPROPRIATIONSDISTRIBUTION OF APPROPRIATIONSBy Major Service Category By Major Service Category - All - All FundsFunds

Protection of Persons and Property $ 64,044,034Protection of Persons and Property $ 64,044,034

Community Health and EnvironmentCommunity Health and Environment 10,461,781 10,461,781

TransportationTransportation 7,779,640 7,779,640

Leisure and Community ServicesLeisure and Community Services

3,828,5933,828,593

General Government Support 27,493,695General Government Support 27,493,695

Capital Improvement Projects 4,864,020Capital Improvement Projects 4,864,020

TotalTotal $ 118,471,763 $ 118,471,763

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DISTRIBUTION OF APPROPRIATIONSDISTRIBUTION OF APPROPRIATIONSBy Major Service Category By Major Service Category - All - All FundsFunds

FY08-09FY08-09 FY09-10 FY09-10 Decrease Decrease

P.P.P. $ 69,914,263 $ 64,044,034 $ 5,870,229P.P.P. $ 69,914,263 $ 64,044,034 $ 5,870,229

C.H.E. 12,029,100 10,461,781 1,567,319C.H.E. 12,029,100 10,461,781 1,567,319

Trans. 8,645,280 7,779,640 865,640Trans. 8,645,280 7,779,640 865,640

L.C.S. 4,264,567 3,828,593 435,974L.C.S. 4,264,567 3,828,593 435,974

G.G.S. 39,152,242 27,493,695 11,658,547G.G.S. 39,152,242 27,493,695 11,658,547

C.I.P. 11,150,477 4,864,020 6,286,457C.I.P. 11,150,477 4,864,020 6,286,457

Total $ 145,155,931 $ 118,471,763 $26,684,168Total $ 145,155,931 $ 118,471,763 $26,684,168

2020

SUMMARY OF APPROPRIATIONSSUMMARY OF APPROPRIATIONS

By Major Account – All FundsBy Major Account – All Funds

Total $118,471,763

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DISTRIBUTION OF SALARIES & DISTRIBUTION OF SALARIES &

BENEFITSBENEFITS By Department - All FundsBy Department - All Funds

Total $86,408,314

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Total $102,527,549

SUMMARY OF APPROPRIATIONSSUMMARY OF APPROPRIATIONS By Major Account – General FundBy Major Account – General Fund

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FY 09-10 Est. RevenuesFY 09-10 Est. Revenues

Transfers InTransfers In

Use of Fund BalanceUse of Fund Balance

FY 09-10 Total ResourcesFY 09-10 Total Resources

FY 09-10 Proposed FY 09-10 Proposed

Budget *Budget *

$ 96,906,200$ 96,906,200

793,000793,000

4,828,3494,828,349

$ 102,527,549$ 102,527,549

$ 102,527,549$ 102,527,549

* Includes Transfers Out* Includes Transfers Out

GENERAL FUND GENERAL FUND SUMMARYSUMMARY

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GENERAL FUND GENERAL FUND APPROPRIATIONSAPPROPRIATIONS

Total $102,527,549

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GENERAL FUND GENERAL FUND APPROPRIATIONSAPPROPRIATIONS

FY 09-10 ProposedFY 09-10 Proposed $102,527,549 $102,527,549

FY 08-09 AdoptedFY 08-09 Adopted 118,835,464 118,835,464

Amount Decrease Amount Decrease $ 16,307,915$ 16,307,915

Percent DecreasePercent Decrease 13.72 % 13.72 %

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GENERAL FUNDGENERAL FUNDWhat does the decrease consist of?What does the decrease consist of?

FY 08-09 FY 09-10FY 08-09 FY 09-10AppropriationsAppropriations AdoptedAdopted ProposedProposed DecreaseDecrease

Salaries 52,189,622 47,498,772 4,690,850Salaries 52,189,622 47,498,772 4,690,850

Overtime 5,184,178Overtime 5,184,178 3,303,062 1,881,116 3,303,062 1,881,116

RetirementRetirement 15,823,401 15,082,901 15,823,401 15,082,901

740,500740,500

Debt Service 6,184,401 3,394,616 2,789,785Debt Service 6,184,401 3,394,616 2,789,785

Internal Rent 4,359,022 2,112,806 2,246,216Internal Rent 4,359,022 2,112,806 2,246,216

SubtotalSubtotal 83,740,624 83,740,624 71,392,157 71,392,157 12,348,467 12,348,467

Other AccountsOther Accounts 35,094,84035,094,840 31,135,392 3,959,448 31,135,392 3,959,448

Total $118,835,464 $102,527,549 $16,307,915Total $118,835,464 $102,527,549 $16,307,915

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TEN YEAR HISTORICALTEN YEAR HISTORICAL EXPENDITURES – By EXPENDITURES – By DepartmentDepartment

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GENERAL FUND RESOURCESGENERAL FUND RESOURCESIncluding Transfers InIncluding Transfers In

Total $97,699,200

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SALES TAX COLLECTIONSSALES TAX COLLECTIONSBy Business Categories – CY 2008By Business Categories – CY 2008

3030

SALES & USE TAXSALES & USE TAXGeneral Fund – includes Sales Tax In-General Fund – includes Sales Tax In-LieuLieu

FY 09-10 Estimated RevenueFY 09-10 Estimated Revenue $ 39,874,000 $ 39,874,000

FY 08-09 Estimated Revenue 44,167,500*FY 08-09 Estimated Revenue 44,167,500*

Amount Decrease Amount Decrease $ 4,293,500 $ 4,293,500

Percent Decrease Percent Decrease (9.72 %) (9.72 %)

* As revised at Mid Year* As revised at Mid Year

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SALES & USE TAX HISTORYSALES & USE TAX HISTORYGeneral FundGeneral Fund

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PROPERTY TAXPROPERTY TAXGeneral FundGeneral Fund

FY 09-10 Estimated RevenueFY 09-10 Estimated Revenue $ 30,795,000 $ 30,795,000

FY 08-09 Estimated Revenue FY 08-09 Estimated Revenue 31,285,000*31,285,000*

Amount Decrease Amount Decrease $ 490,000 $ 490,000

Percent Decrease Percent Decrease (1.57 %) (1.57 %)

* As revised at Mid Year* As revised at Mid Year

3333

PROPERTY TAX HISTORYPROPERTY TAX HISTORYGeneral FundGeneral Fund

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TEN-YEAR REVENUE COMPARISON TEN-YEAR REVENUE COMPARISON SALES & PROPERTY TAXES - General SALES & PROPERTY TAXES - General FundFund

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State Budget ImpactsState Budget Impacts

Potential State Takeaways - 8% Reduction

Current New

FY 08-09 FY 09-10 FY 09-10

Budgeted Proposed Proposed

Revenues 8% Revenues Revenues

Property Tax 22,535,000 1,802,800 22,045,000

20,242,200

Property Tax in Lieu of VLF 8,500,000 680,000

8,750,000

8,070,000

31,035,000 2,482,800 30,795,000

28,312,200

Sales Tax in Lieu of

Property Tax (Triple Flip) 10,867,500 869,400

9,500,000

8,630,600

Total 41,902,500 3,352,200 40,295,000

36,942,800

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FY 08-09 Fiscal Year EndFY 08-09 Fiscal Year End

Total Fund BalanceTotal Fund Balance

FY 07-08 Ending Fund Balance $ 66.2mFY 07-08 Ending Fund Balance $ 66.2m

Current year estimated changeCurrent year estimated change ($ ($ 14.0m)14.0m)

FY 08-09 Est. Ending F.B.FY 08-09 Est. Ending F.B. $ 52.2m $ 52.2m

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Reserved $ 15.8 millionReserved $ 15.8 million

Unreserved designated Unreserved designated $ 29.8 $ 29.8

millionmillion

Unreserved undesignated Unreserved undesignated $ 6.6 $ 6.6

millionmillion

FY 08-09 Ending Fund FY 08-09 Ending Fund Balance $ 52.2 millionBalance $ 52.2 million

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Fund BalanceFund BalanceReserved – the portion of a governmental fund’s net assets Reserved – the portion of a governmental fund’s net assets

that is not available for appropriation.that is not available for appropriation.

Unreserved designated – Management’s intended use of Unreserved designated – Management’s intended use of available expendable financial resources in governmental available expendable financial resources in governmental funds reflecting actual plans approved by the funds reflecting actual plans approved by the government’s senior management. Designations reflect a government’s senior management. Designations reflect a government’s self-imposed limitations on the use of government’s self-imposed limitations on the use of otherwise available expendable financial resources in otherwise available expendable financial resources in governmental funds.governmental funds.

Unreserved undesignated – available expendable financial Unreserved undesignated – available expendable financial resources in a governmental fund that are not the object resources in a governmental fund that are not the object of tentative management plans (i.e., designations).of tentative management plans (i.e., designations).

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BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES

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1.1. ReduceReduce Departmental Operating Departmental Operating Budgets by an additional 5% for an Budgets by an additional 5% for an average reduction of 10% by average reduction of 10% by Department from the prior fiscal Department from the prior fiscal year which will require the year which will require the elimination of approximately elimination of approximately 23 23 full-time positionsfull-time positions..

Estimated Impact:Estimated Impact: 6,318,1346,318,134

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Implementation Status: Implementation Status: – Total departmental expenditure Total departmental expenditure

reductions amounted to reductions amounted to $8.8 million$8.8 million. . – Includes both structural as well as Includes both structural as well as

one-year reductions.one-year reductions.– HoweverHowever, the Proposed Budget does , the Proposed Budget does

not include any full-time staffing not include any full-time staffing reductions pending results of the reductions pending results of the PERS Retirement Incentive.PERS Retirement Incentive.

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2.2. Negotiate reduction in employee Negotiate reduction in employee compensation equating to compensation equating to approximately 5% of salary. approximately 5% of salary.

Estimated Impact:Estimated Impact: $3,623,663$3,623,663

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BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES Implementation Status: Implementation Status:

– Proposed budget assumes a 5% reduction Proposed budget assumes a 5% reduction of base salary and all related of base salary and all related appropriations amounting to $3.6 million.appropriations amounting to $3.6 million.

– Assumption is based on understanding Assumption is based on understanding that negotiations will take place with that negotiations will take place with employee associations during fiscal year employee associations during fiscal year to ensure a reduction is made. to ensure a reduction is made.

– If negotiations fail, it will have an impact If negotiations fail, it will have an impact on current staffing levels or use of G.F. on current staffing levels or use of G.F. fund balance.fund balance.

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3.3. Reduction of $1 million in non-Reduction of $1 million in non-reimburseable overtime for reimburseable overtime for Police and Fire departments. Police and Fire departments.

Estimated Impact:Estimated Impact: $1 $1 millionmillion

4545


Implementation Status:Implementation Status:

– Proposed budget assumes a Proposed budget assumes a reduction in Police dept. overtime of reduction in Police dept. overtime of $534,078 and,$534,078 and,

– Assumes a reduction in Fire dept. Assumes a reduction in Fire dept. overtime of $465,922.overtime of $465,922.

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4.4. Negotiated suspension of Negotiated suspension of minimum manning requirements minimum manning requirements in the Fire Department in order in the Fire Department in order to accomplish the proposed to accomplish the proposed overtime expenditure reduction overtime expenditure reduction included in the previous budget included in the previous budget development strategy. development strategy.

4747


Implementation Status:Implementation Status:

– Currently discussing suspension of Currently discussing suspension of minimum manning requirements minimum manning requirements with the Costa Mesa Firefighters with the Costa Mesa Firefighters Association.Association.

4848


5.5. Seek Federal Stimulus funding Seek Federal Stimulus funding for ten police officer positions to for ten police officer positions to be eliminated due to Police be eliminated due to Police department budget reductions. department budget reductions.

Estimated Impact: $1,052,010Estimated Impact: $1,052,010

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Implementation Status:Implementation Status:– During the month of April, the City During the month of April, the City

Manager and Police Chief officially Manager and Police Chief officially transmitted the application for transmitted the application for Federal Stimulus funding for Police Federal Stimulus funding for Police Officer positions. The application was Officer positions. The application was made for 18 positions with hopes of made for 18 positions with hopes of receiving funding for 10. The City receiving funding for 10. The City was notified it would receive a was notified it would receive a response prior to September 30.response prior to September 30.

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6.6. Offer PERS retirement incentive to Offer PERS retirement incentive to create vacancies to:create vacancies to:

(a) reduce the number of personnel that may (a) reduce the number of personnel that may be laid off as a result of reductions in be laid off as a result of reductions in departmental operating budgets and,departmental operating budgets and,

(b) create additional vacancies needed for (b) create additional vacancies needed for budgetary purposes (assumes total of 50 budgetary purposes (assumes total of 50 employees opting to retire of which 25 employees opting to retire of which 25 positions would be eliminated).positions would be eliminated).

Estimated Impact:Estimated Impact: $3,485,000$3,485,000

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Implementation Status:Implementation Status:– Staff is preparing all necessary paperwork Staff is preparing all necessary paperwork

for the PERS Retirement Incentive to be for the PERS Retirement Incentive to be acted on and implemented. The estimated acted on and implemented. The estimated window of time for employees to make an window of time for employees to make an election is through September, 2009.election is through September, 2009.

– No staff reductions included in proposed No staff reductions included in proposed budget.budget.

– Staff will propose budget amendments to Staff will propose budget amendments to reduce expenditures when staff impacts are reduce expenditures when staff impacts are known. known.

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7.7. Suspension or termination of the Suspension or termination of the Retiree Health Savings (RHS) Retiree Health Savings (RHS) Plan. (Contributions are Plan. (Contributions are comprised of 1% by Employee comprised of 1% by Employee and 1% by Employer).and 1% by Employer).

Estimated Impact: $508,764 Estimated Impact: $508,764

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Implementation Status:Implementation Status:– RHS plan can be suspended instead RHS plan can be suspended instead

of terminated. of terminated. – Currently conducting discussions to Currently conducting discussions to

suspend RHS contributions made by suspend RHS contributions made by both employer and employee. both employer and employee.

– When staff successfully concludes When staff successfully concludes negotiations, budget will be negotiations, budget will be amended to include expenditure amended to include expenditure reductions. reductions.

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8.8. Implement various cost recovery Implement various cost recovery programs including resident EMS programs including resident EMS fees, inspection fees, and Police fees, inspection fees, and Police and Fire cost reimbursement and Fire cost reimbursement fees. fees.

Estimated Impact: $959,700Estimated Impact: $959,700

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BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES Implementation Status:Implementation Status:

– At it’s June 2, 2009, City Council At it’s June 2, 2009, City Council approved some but not all of the fees approved some but not all of the fees proposed. The projected shortfall is proposed. The projected shortfall is $809,700.$809,700.

– Additional funding necessary will need Additional funding necessary will need to be appropriated from fund balance or,to be appropriated from fund balance or,

– Additional program and service cuts Additional program and service cuts made to offset the estimated revenue made to offset the estimated revenue loss. loss.

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9.9. Renegotiate/extend the Golf Renegotiate/extend the Golf Course Operator’s agreement Course Operator’s agreement for a greater share of the for a greater share of the revenues and institute formulaic revenues and institute formulaic adjustments to the greens fees. adjustments to the greens fees.

Estimated Impact:Estimated Impact: $244,850$244,850

5757

BUDGET DEVELOPMENT BUDGET DEVELOPMENT STRATEGIESSTRATEGIES Implementation Status:Implementation Status:

– Staff has successfully renegotiated the Staff has successfully renegotiated the Operator’s agreement and it will be Operator’s agreement and it will be considered by City Council at its June 16 considered by City Council at its June 16 meeting. meeting.

Change in agreement will increase golf Change in agreement will increase golf revenue to the City by $112,500 annually.revenue to the City by $112,500 annually.

Also, City will receive one-time payment Also, City will receive one-time payment of $190,000 for adjustment to Golf Course of $190,000 for adjustment to Golf Course CIP reserve.CIP reserve.

Total FY09-10 Impact $302,500.Total FY09-10 Impact $302,500.

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10.10. Utilization of undesignated Utilization of undesignated unreserved General Fund fund unreserved General Fund fund balance.balance.

Estimated Impact:Estimated Impact: $2.9 $2.9 millionmillion

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Implementation Status: Implementation Status: – Proposed budget includes total use Proposed budget includes total use

of GF fund balance at $4,828,349. of GF fund balance at $4,828,349. – Includes potential savings from PERS Includes potential savings from PERS

retirement incentive and RHS retirement incentive and RHS suspension of plan contributions. suspension of plan contributions.

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SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS

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SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS If substantially approved as submitted the If substantially approved as submitted the

budget development strategies will eliminate budget development strategies will eliminate over over 100,000100,000 man hours. man hours.

Proposed staffing levels will be lower than Proposed staffing levels will be lower than staffing levels almost 25 years ago.staffing levels almost 25 years ago.

Staffing reduction will impact both the quality Staffing reduction will impact both the quality and quantity of service to the public. In many and quantity of service to the public. In many instances, the specific impacts will not be instances, the specific impacts will not be known until after the Retirement Incentive known until after the Retirement Incentive takes full effect. takes full effect.

6262

SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Close Downtown Recreation Center pool from Close Downtown Recreation Center pool from

October to April.October to April.

Elimination of funding for planting of 250 Elimination of funding for planting of 250 trees, park and open space clean-up crew, trees, park and open space clean-up crew, weekly median maintenance.weekly median maintenance.

Reduction of public safety staffing (specific Reduction of public safety staffing (specific impacts will not be known until after the impacts will not be known until after the Retirement Incentive takes full effect). Retirement Incentive takes full effect).

6363

SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Elimination of most weekend and after Elimination of most weekend and after

business hour video production programs,business hour video production programs,

Elimination of paving two residential streets Elimination of paving two residential streets including reduction in use of 750 tons of including reduction in use of 750 tons of asphalt in street program,asphalt in street program,

Reduction in City’s ability to respond to Reduction in City’s ability to respond to knockdowns and unexpected traffic signal knockdowns and unexpected traffic signal repairs, repairs,

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SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reduction of right-of-way weed control by 10% Reduction of right-of-way weed control by 10%

resulting in more visible weeds along City resulting in more visible weeds along City streets, alleys and sidewalks,streets, alleys and sidewalks,

Elimination of all turf and landscape Elimination of all turf and landscape fertilization resulting in a decline in aesthetic fertilization resulting in a decline in aesthetic quality of parks and landscape and “turf quality of parks and landscape and “turf healing”ability in high traffic areas,healing”ability in high traffic areas,

Reduction in contract maintenance of Reduction in contract maintenance of TeWinkle Lake, elimination of “Mutt Mitt” TeWinkle Lake, elimination of “Mutt Mitt” program in all parks, and elimination of routine program in all parks, and elimination of routine replacement of park furniture and amenities,replacement of park furniture and amenities,

6565

SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reduction in Youth and Family programs, Reduction in Youth and Family programs,

Mobile Recreation Program, Youth Basketball Mobile Recreation Program, Youth Basketball and Football, Concerts in the Parks, and Football, Concerts in the Parks, suspension of Youth in Government, suspension of Youth in Government,

Reduced funding for Cultural Arts and Reduced funding for Cultural Arts and Historic Preservation Committees,Historic Preservation Committees,

Reduction in staff hours supporting Fairview Reduction in staff hours supporting Fairview Park Improvements, Park Improvements,

6666

SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reductions in small tools, materials, Reductions in small tools, materials,

equipment, supporting Graffiti Removal equipment, supporting Graffiti Removal Program,Program,

Suspension of Police Department Recruiting Suspension of Police Department Recruiting Program,Program,

Significant reduction in funding for Water Significant reduction in funding for Water Quality inspections, termination of catch Quality inspections, termination of catch basin entrance lid and screen repair/ basin entrance lid and screen repair/ replacement program, replacement program,

6767

SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Reduced Measure M funding for street Reduced Measure M funding for street

repairs due to reallocation of General Fund repairs due to reallocation of General Fund expenditures to the Measure M fund, expenditures to the Measure M fund,

Postponement of needed computer hardware Postponement of needed computer hardware and software replacement, and software replacement,

Elimination of all non-mandatory training and Elimination of all non-mandatory training and professional development,professional development,

6868

SERVICE IMPACTS AND SERVICE IMPACTS AND BUDGET CUTSBUDGET CUTS Postponement of most scheduled vehicle and Postponement of most scheduled vehicle and

equipment replacement,equipment replacement,

Elimination of Building Repair and Elimination of Building Repair and Maintenance projects.Maintenance projects.– Deferred repairs = Deferred liabilities.Deferred repairs = Deferred liabilities.– Deferred liabilities = Increased future Deferred liabilities = Increased future

liabilities.liabilities.

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Our Future – Moving Our Future – Moving ForwardForward The current situation is a combination of the The current situation is a combination of the

recession, reoccurring expenditures exceeding recession, reoccurring expenditures exceeding annual revenues, community demands for annual revenues, community demands for additional services/capital projects and additional services/capital projects and continuing State budget impactscontinuing State budget impacts..

The City cannot control all of these but must The City cannot control all of these but must address those which it can control.address those which it can control.

Necessary reductions proposed for FY 09-10 will Necessary reductions proposed for FY 09-10 will fuel future demands for restoration of services, fuel future demands for restoration of services, salaries & benefits, deferred maintenance and salaries & benefits, deferred maintenance and capital projects.capital projects.

Time to revisit policy directives and financial Time to revisit policy directives and financial planning before these demands are upon us.planning before these demands are upon us.

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Questions?

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FISCAL YEAR 20O9-2010 FISCAL YEAR 20O9-2010 PROPOSED BUDGETPROPOSED BUDGET Copies available for Public Viewing at:Copies available for Public Viewing at:

City Clerk’s Office at 77 Fair DriveCity Clerk’s Office at 77 Fair Drive

(City Hall – 1(City Hall – 1stst Floor) Floor)

Public Libraries at:Public Libraries at:

Costa Mesa Branch, 1855 Park AvenueCosta Mesa Branch, 1855 Park Avenue

Mesa Verde Branch, 2969 Mesa Verde Mesa Verde Branch, 2969 Mesa Verde DriveDrive

City’s Website: City’s Website: www.ci.costa-mesa.ca.uswww.ci.costa-mesa.ca.us Additional information contact 714-754-5243Additional information contact 714-754-5243

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FISCAL YEAR 20O9-2010 FISCAL YEAR 20O9-2010 PROPOSED BUDGETPROPOSED BUDGET COMMUNITY BUDGET BRIEFINGCOMMUNITY BUDGET BRIEFING

Thursday, June 11, 2009 at 6:00 inThursday, June 11, 2009 at 6:00 in

Conference Room 1AConference Room 1A

PUBLIC HEARING AND ADOPTIONPUBLIC HEARING AND ADOPTION

Tuesday, June 16, 2009 at 7:00 in Tuesday, June 16, 2009 at 7:00 in Council Chambers Council Chambers

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June 9, 2009

Documents

1 FISCAL YEAR 2009-2010 PROPOSED BUDGET City of Costa Mesa Budget Study Session June 9, 2009