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Recommendation to receive and file report on additional Fiscal Year 2009 revenue enhancement or expenditure reduction opportunities, if any, in particular from those departments that did not take a 10 percent reduction, in order to restore funding for Park Rangers. (Citywide)
DISCUSSION
On September 9, 2008, during final deliberations regarding the Fiscal Year 2009 (FY 09) budget, the City Council asked staff to explore potential opportunities for additional revenue enhancements or budget reductions with which to add four full-time Park Rangers to the budget, bringing Park Ranger staffing to nine full-time positions and restoring the Citywide Park Ranger program. Particular attention was to be paid to departments that were not asked to provide structural deficit solutions equaling 10 percent of their discretionary budgets.
The requested addition of four full-time Park Rangers would require an additional $355,242 in General Fund resources. Per the City Council's request, the City Manager met with staff from the Departments of Parks, Recreation and Marine, Financial Management, and Police over the past several weeks to identify any available resources to support this request, or at a minimum, an alternate service delivery model to achieve the City Council's desired outcome.
Ø Additional Revenue Options
The precipitous and unprecedented decline in the economy since the beginning of the fiscal year has changed the City's outlook regarding the General Fund's revenue performance over the next 12 months. While the actual impact will not be known and will be difficult to project until the financial markets stabilize, several key ongoing revenue sources are susceptible to the influences of the economy and are projected to come in below budgeted levels. These include property, sales, vehicle license, and utility user taxes, along with uplands oil revenue and interest earned from the City's investment pool. With one month of revenue received and the current price of oil at $47/bbl (as of November 12, 2008), it is currently projected that General Fund Therefore, it is not anticipated that the General Fund will have any available structural revenue with which to support the requested Park Ranger program enhancement.
Ø Additional Expenditure Reductions
The City of Long Beach prescribed a savings target to General Fund and related fund departments to generate a wide range of viable solutions and options for the City Manager to eliminate the $16.9 million projected structural deficit for FY 09.
This target equaled approximately 10 percent of each department's discretionary base budget, and could be met by departments with either cuts or new revenue solutions. However, this by no means was indicative of a desire or intent to employ an across-the-board budget cutting strategy, recognizing that it is an ineffective means of downsizing the organization, weakening the organization as a whole rather than providing needed resources in priority and high-performing programs.
The following chart demonstrates the percentage of solutions provided by General Fund and related fund departments as well as the final percentage approved by the City Council.
Staff does not recommend the City Council make additional reductions in department services to support the Park Ranger enhancement. However, while seven departments were not asked to provide structural deficit solutions up to 10 percent of their budget, should the City Council want reduction options to consider, staff would suggest the following reductions recommended by the Budget Oversight Committee that were considered but not approved by the City Council during budget adoption:
Ø Alternate Service Delivery Model
Rather than making further budget reductions, staff recommends that park safety be achieved using a two-pronged approach utilizing currently budgeted resources. The Department of Parks, Recreation and Marine will utilize its five full-time Park Rangers to provide services to the El Dorado Regional Park, as well as provide additional patrols to high-demand local parks, including EI Dorado West and Heartwell. This should provide the additional support needed at these nearby parks without compromising safety at the EI Dorado Regional Park. The Police Department, as part of its).:egular patrol deployment and responsibilities, will provide emergency response to the remaining City parks. This recommendation will result in two full-time rangers being transferred to Parks, Recreation and Marine's Special Events and Filming Bureau to assist with security needs in that operation.
A police lieutenant has been assigned to the Department of Parks, Recreation and Marine the past few years in order to provide oversight for the Park Ranger program.
The lieutenant will continue to supervise the Park Rangers in El Dorado Regional Park and Special Events and Filming. Moreover, the lieutenant's presence in Parks, Recreation and Marine will playa key role in this integrated approach with the Police Department, which more effectively utilizes limited Park Ranger resources with the addition of the Police Department to provide a consistent Citywide park safety program.
This matter was reviewed by. Deputy City Attorney Gary J. Anderson on November 5.
2008, and Budget Management Officer Victoria Bell on October 31 and on November 10, 2008.
TIMING CONSIDERATIONS
City Council action on this matter is not time critical.
FISCAL IMPACT
The recommended action would leave the FY 09 budget as adopted. However, should the City Council choose to approve $355,242 of proposed General Fund budget reductions, an equal increa~,e will be included in the General Fund (GF) in the Department of Parks, Recreation and Marine (PR) for no net impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
SUZANNE FRICK
ASSISTANT CITY MANAGER
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |