MANAGEMENT PARTNERS, INC. (2011 Budget Analysis)

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Mr. David Ream Page 4 range of ideas about possible solutions are heard and analyzed. We will prepare a report that reflects our independent assessment of solutions to creating a stabilized budget for long-term sustainability. The following plan of work is a starting point for our discussions with your team. We work collaboratively and will modify this plan of work as needed to ensure that it accomplishes your objectives for the project. Activity 1 - Start Project Management Partners will begin this project with a kick-off meeting with the City. During this meeting we will refine the schedule, discuss the project objectives, and review the tasks to be undertaken. We will discuss the establishment of a management steering committee to serve as a sounding board as we develop recommendations. We have found such committees to be useful in these projects. During this first activity, we will submit a document and data request to the City. Additionally, we will interview elected and appointed City leaders to understand their perspectives on the challenge ahead. Activity 2 - Gather Data We will initiate a careful learning phase to understand the City's current fiscal status and environment. We will review multi-year information on the City's budget, including revenue sources and amounts, expenditure allocations, reserves and other funds, budgetary reductions and cost shifts that have been made to date, the local community, the City's labor environment, and other relevant factors. To organize our work we will develop independent strategies grouped in four dimensions which, taken together, comprise a range of alternatives for closing the deficit gap and creating a stabilized and sustainable budget: 1. New/Increased Revenue Sources - This involves identification of new revenue sources based on best practices, including user fee/cost recovery approaches 2. Expenditure Controls/Shifts - This refers to strategies which cap or save General Fund expenditures either by shifting costs to other funds or service providers 3. Service Delivery Model Changes - This includes looking at alternative, lesser cost, service delivery approaches 4. Service Delivery Reductions - This involves reductions based on prioritizing core services and reducing non-core ones. During this activity we will compile data to be used throughout the analytical phase of the project. We will include budgets, analytical work, departmental budgetary recommendations, labor agreements and other relevant information documented during this activity. In addition, we will review budgeting approaches and test budget assumptions against actual experience, and review and factor in the City's inventory of unmet or deferred infrastructure and maintenance needs, to the extent the information is available. Other data that is essential to this type of project comes from staff, including executive management, mid-management and line employees. We find that useful ideas are generated by staff and we will optimize opportunities to hear their suggestions. We will go about gathering input from staff in several ways, as follow: