60A - BUDGET STABILIZATION PLAN - Laserfiche WebLink

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Budget Stabilization Plan September 19, 2011 Page 5 4. Revenue increases: City will gather information to possibly seek voter approval for new and/or enhanced taxes. Staff is also working on full cost recovery for all City programs including the paramedic subscription and false alarm programs where opportunities exist to increase revenues. Also, the City is looking into generating additional revenue from the utility franchise fee as well as from the marketing of City assets and potential sponsorships. In addition to these four areas, I have implemented a series of expenditure control measures. These include: eliminating overtime unless pre-approved or warranted by contract, defer all major capital purchases that are not mission critical and maintain all vacancies and initiate a soft hiring freeze. It is equally important to note that underlying this four-pronged approach are prudent fiscal principles, which not only stabilize the budget, but are critical as the City begins to build its financial health. These fundamental fiscal principles are: 1. Fund ongoing expenditures with recurring revenues. 2. Preserve remaining unrestricted fund balance and build a general fund reserve. 3. Utilize internal service fund for intended uses, emergencies, contingencies, cash flow, and transition costs in service delivery. 4. Negotiate future compensation agreements that can be sustainable and affordable based on City's financial capacity. To begin to implement these principles I have asked for the assistance of an outside financial consultant to review our budget and expenditure/revenue plan and have requested that bond counsel review our current portfolios. These actions are to ensure that Santa Ana proceeds forth in a prudent and responsible manner. Throughout this process the City is committed to providing timely and relevant information to the public and to its employees. A new electronic newsletter to residents will be operational in October and the City's website and water bill inserts will be used to communicate to the public. An internal web page with budget updates has been made available for our employees with a portal site to gather their suggestions. FISCAL IMPACT The four-pronged approach identified above is designed to, enhance City revenues, reduce expenditures in the general fund by $30 million, to bring expenditures in line with available revenues and to stabilize the City's budget. f f ` Paul M. Walters Interim City Manager 60A-5