Fiscal Year 2013-2015 Special Budget Meeting

POLICY TRADEOFFS & SERVICE BUYBACKS Restoration of Expenditures Cuts & Policy Decisions on Possible Expanded Funding of Priority Services RESTORATION OF EXPENDITURE CUTS The FY 2013-15 Proposed Policy Budget includes a number of service and position reductions relative to FY 2012-13, which were required as baseline expenditures are growing faster than baseline revenues. To the extent that the City Council eliminates expenditures included in the FY 2013-15 Proposed Policy Budget or identifies additional revenues, the City Council can use those expenditures or new revenues to restore proposed service reductions in order to maintain existing service levels. Below is a list of key City services and positions that were reduced or excluded in the proposed budget due to fiscal constraints that we would recommend restoring if additional revenue or expenditure reductions is recognized. Labor contracts for miscellaneous bargaining groups, and the significant temporary compensation reductions they include, expire at the end of FY 2012-13. After considering the restoration of these employee compensation contributions in FY 2013-14, a 5% reduction in compensation for the next two fiscal years would equate to cost savings to the City of approximately $5M annually for the General Purpose Fund and $13M annually for all funds. Note that in some cases, the ongoing costs discussed below, which are based on FY 2012-13 or FY 2013-14 values, do not include cost escalation that the City is likely to experience. CUTS FOR POSSIBLE RESTORATION Fire Prevention Inspector The civilian Fire Prevention Bureau Inspector position was frozen in prior fiscal years and remains frozen in the proposed budget. The annual cost of salary and benefits to restore the position is $104,024. This position is recommended for restoration to augment services provided from the current level. TOTAL COST $104,024 Restore all Hours at Recreation Centers The proposed budget includes the reduction of 3.25 FTE recreation staff, which will result in decreased hours at recreation centers. Fully restoring these positions will require $106,653. TOTAL COST $106,653 Fully Restore Funding to Cultural and Recreational Organizations The City provides funding above what is legally required to a number of cultural and recreational organizations. The proposed budget reduces funding beyond the required minimum by approximately 10% to the Chabot Space and Science Center, Oakland Zoo, Hacienda Peralta, Asian Cultural Center, Vietnamese American Community Center, and others. Restoring this 10% reduction would total approximately $100,000. TOTAL COST $100,000 A - 1