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� � � � � �Vlema To: Mayor and City Council Neal Beets, City Manager =- From: Ckris Miller, Finance Director �� Date: June 20,2006 �� Re: Supplemental Information for the 2007 Budget Date: 06120106 Item: 10. 2007 Budget Supplemental Information Introduction At the April 24, 2006 City Council meeting, the Council provided some general direction for Staff regarding the 2007 Budget Priorities and as well as the budget process itsel£ In addition, the Council also requested additional information regarding some of the City's programs and services. The requests included: �) A request for information regarding contractual and professional services that the City employs and the decision-mal{ing process used to outsource these functions. Specific services that were identified included; custodial, tree-trimming, and vegetation control in City parks 2) A list of new funding obligations that come ��i-tin� in 2007 3) A list of funding obligations that go oi� li�e in 2007 4) A list of cost inputs that are likely to increase at greater than the inflation rate 5) A list of anticipated revenue losses or shortfalls � A report on the tentative plans for the anticipated $1 million in park dedication fees that are expected to be realized when the Twin Lakes area is redeveloped 7) A report on the percentage of total spending that is personnel-related 8) A list of expendituresthat have been deferred due to recent budget challenges 9) A report on ownership of the Gymnastics Center A brief report on each informational item noted above is presented below. Discussion on Contractual Services Beginning in March of 2005, the City eliminated its last remaining custodial position. Currently, all general-purpose custodial services are contracted out to two separate firms. At the time, it was estimated that the City would save approximately $25,000 annually by fully outsourcingthis function. Based on a review of these costs, it appears that the City is act❑allv �aving approximately $35,000 azzzzua�ly. However, this savings is somewhat overstated due to additional time spent by Skating Center employees to perform custodial-type duties. City Staff is in t�e process of reviewing the custodial service contracts to determine if any adjustments are needed. With the exception of diseased and hazardous tree removal, City Staff perform all tree trimming services on City property and right-of-way. Vegetation control is a specialty function that is performed in the City's high usage �arl�s and athletic areas. Vegetation control requires special � Y