Laserfiche WebLink
Special City Council Strategic Planning Meeting <br />Saturday, February 7, 2009 <br />Page 2 <br />Mr. Malinen noted that the previously-discussed revisions to the City's budgeting <br />process, implementing budgeting for outcomes, became much more important given <br />these fiscal constraints. Mr. Malinen noted, for the benefit of the public, that the 2009 <br />budget effectively froze all expenditures at 2008 levels, with the exception of personnel <br />costs. Mr. Malinen advised that, since December, he had implemented a hiring freeze <br />intended to anticipate revenue losses of $400,000, including not filling a number of <br />currently vacant positions, while department managers determined which positions they <br />preferred to fill and how to reallocate their existing personnel resources. Mr. Malinen <br />further advised that, it had been determined internally through staff analysis that no new <br />capital equipment purchases would be done, even those approved as part of the 2009 <br />budget. Mr. Malinen noted that there would be additional maintenance costs in keeping <br />the existing equipment running, however, opined that it was significantly less than major <br />capital outlays. <br />Mr. Malinen noted, however, that the above-referenced short-term remedies did not serve <br />to provide for along-term structural adjustment. ~Vlr. Malinen further requested direction <br />dud authorisation from the City Cot~incii to pursue options with neighboring communities <br />for additional cast-saving measures `at~d ~~t purchases as applicable. <br />Mr. Malinen advised that each department was prepared to share their specific challenges <br />and budget impacts to funding reductions pro-rated for each department; as well as some <br />options for Council consideration as they look at the overall picture and policy-making <br />contexts for those decisions. Mr. Malinen noted that there was also the option of using <br />reserve funds to facilitate this potential $400,000 reduction in revenue; however, he again <br />noted that this, or a combination of reduced programs, service levels and other remedies <br />did not provide long-term structural solutions. <br />Discussion included equities in distributing budget cuts among departments <br />proportionately for those funds supported in part or in full by property taxes, and <br />independent of their revenue sources. <br />City Manager Malinen introduced Ms. Aimee Gourlay. <br />Ms. Gourlay briefly reviewed her part in the day in keeping the City Council and staff <br />focused on their discussions, and her keeping summary comments for future reference. <br />5. Department Head Presentations - 2009 Challenges <br />AND <br />6. 2009 Budget Impacts for Market Value Homestead Credit (MVHC) <br />Public Works Director Duane Schwartz <br />Mr. Schwartz noted that his department had already been severely impacted by the <br />difficult economic climate and significantly squeezed by inflation, considering that it <br />operated mostly from tax revenues. Mr. Schwartz noted the ongoing costs for <br />construction, fuel and materials. Mr. Schwartz noted that staff had been anticipating <br />