City Council Study Session Agenda and Packet 2009 08 11

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Staff Recommendations for Reducing the Gap Between Revenues and Expenditures Priority Definition... A= Staff recommends taking this action now B= Staff recommends taking this action it C= Consider this action at a later date if necessary D= Staff considered this action and recommends Pro ram Effect well pl ;de Action Improved Efficiency Reduced Service Revenue Increase Pros Cons 2009 Savings (assuming 9/1 start) 2010 Annual Ongoing Savings 2009 Cumulative Total 2010 Cumulative Total 1 A FIN Eliminate the Sales Tax Vendor Fee. This would increase total revenue by $120,000 annually, including General Fund revenue of $68,000 for 2010, and Conservation Trust Land Acquisition Fund revenue of $34,000 for 2010. Ordinance change and tax form changes would make November 2009 earliest possible implementation date. X City Code authorizes sales tax vendors to withhold 3.33% of the tax they collect, up to a maximum of $100 per month. We can change the current Code via ordinance to eliminate this practice. Council may want to use the funds generated through this change for business assistance activities that might otherwise be cut, however, doing so would not help balance the budget. Some may perceive this as not being "business friendly" during a recessionary period. 68,000 68,000 2 A PD Continue to keep one L3 -1 police officer position vacant X Position has been vacant for most of 2009 and based upon current loads, services have not been negatively impacted. Less elasticity of scheduling and when call load increases vacancy may result in longer response times. 22,000 66,000 22,000 134,000 3 A P &R Create a neighborhood improvement district and transfer responsibility for operating and maintaining Memory Square Pool to the district. X Budget savings: Gross savings of $82,000 offest by loss of admission revenue of $25,000 and Swim Team revenue of $6,500. Based on attendance, the subsidy at Memory Sq. Pool is approximately $10.00 to $12.00 per patron visit. Possibility of making Memory Sq function like the other neighborhood pool (Coal Creek) which is privately operated. Additional capital outlay savings. May reduce access to an important neighborhood amenity. Unknown legal issues and transaction costs. 50,500 22,000 184,500 4 A FIN Adjust Annual Replacement Contributions for the Technology Management Fund I.T. has completed their analysis and we have been planning on doing this anyway. Unknown 50,000 50,000 72,000 234,500 5 A ALL Pass on to employees that portion of the anticipated 2010 8% medical insurance premium increase that is not offset by the 2009 $37,000 Kaiser refund to the City. If the total increase is 8% (about $75,000 for the General Fund) the General Fund Portion of the refund would be about $25,000, and the net savings to the City would be about $50,000. X The City will most likely have an 8% benefit increase for 2010. Currently, the City's salaries are competitive while medical benefits are more generous than other jurusdictions. Having employees instead of the City absorb this increase will bring Louisivlle's benefits package more in line with comparable cities. Using the Kaiser refund to minimize the cost increase to employees demonstrates the City's partnership with employees in promoting wellness and reducing health insurance costs. This is not a true savings (but it is an avoided cost increase, and the cost increase in reflected in our long -term projections). Passing the cost on to employees Imposes more of a burden on employees.There would be a disproportionate impact on employees at the lower end of the pay scales. 50,000 72,000 284,500 Budget Options 2009 08 05.xls Page 1 of 12