2009 Lakewood Budget Hearings Set to Begin This Evening

[Jim O'Bryan]

Good Morning,

These periodic e-mails are updates of the City of Lakewood, Ohio's concurrent initiatives to create a structurally sound budget for 2008, and to create financial strength and flexibility for 2009 and beyond as prescribed by Joint Resolution #8167-07 and Resolution #8292-08.
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The 2009 Budget Hearings are set to begin this evening, Monday, November 17th following the Regular City Council Meeting. Below and Attached is the schedule.

This is a change from prior years since a temporary budget was traditionally passed by Council prior to the end of the year, and the current year's budget hearings would take place between January - March with passage of the permanent budget by March 31st.

This year the permanent budget will be introduced at this evening's Council meeting.  Passage by December 31st means that divisions can begin operating January 1st assuming a full year's budget, instead of only a 1/4 year in previous years under the temporary budget. Operating under a permanent budget helps divisions better plan their services and programs, and to begin monitoring their expenditures and financial reports as early as January 31st.

This will also allow capital expenditures for vehicles and equipment, roads and infrastructure, and other improvements, to occur earlier in the year.

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Also attached is the Monthly Financial Report (formerly known as "Report 52") for month-ending October 2008.

General Fund revenues are on budget, but please keep in mind that all of the property tax revenue has been received for the year, and interest and estate tax revenues are significantly below expectations.

General Fund Expenditures are on budget for many divisions based on the revised budget passed by Council on October 20th that remedied the impact of the mid-year projected deficit and the reductions in personnel and operating costs that took place over the course of 2008.

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The 2009 Estimate of Expenditures was released on November 13, 2008. It can be viewed at: <http://www.onelakewood.com/fin_main.html>http://www.onelakewood.com/fin_main.html

In compliance with Section 14 of the City of Lakewood Charter, this document  will serve as the guide for the 2009 budget hearings.

The following is the charter language that prescribes the content of the Estimate of Expenditure document:


"On or before the fifteenth day of November in each year, the Mayor Director of Public Works and Director of Finance shall prepare an estimate of the expense of conducting the affairs of the City for the following year; this estimate shall be compiled from detailed information obtained from the various departments on uniform blanks prepared by the Director of Finance, and shall set forth:


(a) An itemized estimate of the expense of conducting each department;


(b) Comparisons of such estimates with the corresponding items of expenditures for the last two complete fiscal years and with the expenditures of the current fiscal year plus an estimate of expenditures necessary to complete the current fiscal year;


(c) Reasons for proposed increases or decreases in such items of expenditures compared with the current fiscal year;


(d) A separate schedule for each department showing the things necessary for the department to do during the year and which of any desirable things it ought to do if possible;


(e) Items of payroll increases as either additional pay to present employees, or pay for more employees;


(f) An itemization of all anticipated revenue from taxes and other sources;


(g) The amounts required for interest on the City's debt, and for bond retirement funds as required by law;


(h) The total amount of the outstanding City debt with a schedule of maturities of bond issues and any other long-term financial obligations of the City;


(i) Such other information as may be required by Council. Upon receipt of the estimate, Council shall thereafter pass, taking the estimate into consideration, temporary or permanent appropriation ordinances as provided by general law. No money, from whatever source derived, shall be appropriated for use by or at the direction of individual members of Council. Provision shall be made for public hearings upon the proposed appropriation ordinance before a committee of Council or before the entire Council sitting as a committee of the whole. "



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FY2009 BUDGET HEARING SCHEDULE





1.       Monday, November 17, 2008 - immediately following the Regular City Council Meeting (approximately 8:30 PM) in the Council Chambers. (These items could be deferred to the November 18th meeting if Regular Council Meeting adjourns too late)

a. Overview of Mayor’s Budget
i. Assumptions
ii. Changes from 2008
iii. Service impact

2.       Tuesday, November 18th, 6Pm-9PM (Auditorium)

(any items from November 17th meeting left unaddressed)

a. Refuse Department

i.  Objectives

ii.  Cost savings and service issues

1. Financial implications

2. Operational implications

a. Collective Bargaining considerations

b. Equipment

c. Routes

d. Large item pick up

3. Environmental Implications

a. Energy consumption considerations

4. Recycling

a. Opportunity to expand participation

b. Challenges to existing participation

c. Cost/revenue issues

5. Implementation issues

a. Communication

b. Compliance/cooperation

c. Exceptions

6. Other

3.       Monday, November 24th, 6PM- 9PM (Jury Room, 1st Floor City Hall)

a. Enterprise Fund Costs/Revenues

i. Objectives: Costs shift proposals from General Fund to Enterprise Funds

ii. Assumptions and analysis of costs

iii. Impact on General Fund

iv. Impact on Enterprise Funds

1. Fund Balance

2. Cost reduction plans

b. Follow Up- Refuse

c. Follow UP- Enterprise Funds
d. Human Services- Objectives
i. How can we Achieve objectives with minimal service reduction?
ii. Transportation

1. Logistics management improvement
a. Dispatch costs
b. Delivery route optimization
c. Other

iii. Shift to “Settlement House’ model discussed last January (comprehensive approach that "strengthens individual and neighborhood assets, and builds collective capacity to address community problems"
iv. Regional cooperatives
v. Etc.

4. Tuesday December 2nd, 6PM-9PM (Room is yet to be determined)
a. Police: Objectives:
b. Fire: Objectives:
i. What Administrative/process related costs could be reduced or eliminated without affecting core service offerings?

1. Fuel Consumption reduction

2. Communication costs
a. Call Box maintenance
b. Other
ii. What services are now offered that could realize a revenue increase?

1.EMS utilization
2. Enforcement revenue- Police
3. other

5.  Saturday, December 6th, 8AM-Noon (Auditorium, 2nd Floor City Hall)
a. Public Works: Objectives:
i. What costs can be reduced with minimal service reduction?

1. Fuel consumption
2. Equipment utilization and maintenance
3. Forestry options

6. * Monday, December 8th, 6PM-9PM
a. Court
i. Administrative process costs
ii. What revenue could be increased?
b. Capital Budget 2009

7. Saturday, December 13th, 8AM-Noon (Auditorium, 2nd Floor City Hall)
a. Economic Development plans and Objectives
b. Investment priorities-Economic Development
c. Investment Priorities
i. Funding reserve balance accounts

1. Separation payments-Retirements

2. Workers Compensation reserve

3. Health Care Reserve

4. Economic Development fund

5. Rainy Day Fund/budget stabilization fund
ii. Productivity Investments-

1. Information Technology switch to Microsoft
ii. Other Investment opportunities

8.  Tuesday, December 16th- Backup date or Budget Vote (Room yet to be determined)

9.  Saturday, December 20th, Backup date or Budget Vote (Auditorium)

10. Monday, December 22nd, Budget Vote (Room yet to be determined)

[Jim O'Bryan]

Please note that the room for Monday's, November 24th Budget Hearing has been changed from the Jury Room to the 2nd Floor Auditorium.