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HomeMy WebLinkAboutFY 20-21 Proposed Budget Presentation (2)FY 2020/21 Proposed Budget 1 City Manager’s Opening Remarks FY 2020/21 Proposed Budget •COVID Impact •General Fund Summary •Reserves •General Fund Overview •Revenues •Expenditures •Department Review •Strategies to Balance to General Fund Budget •10-Year Forecast Introduction and Agenda: 2 Background •Proposed Budget reflects an operating deficit of $10.3 million. •Proposed budget reflects the cost of providing services at pre-COVID19 levels and does not include any additional services or programs •Costs to provide existing levels of service are outpacing revenues •For the current year, FY 2019/20, $11.2 million was cut from the budget (pre-COVID 19) to match revenues •A budget deficit of at $1.3 million was projected for the upcoming budget FY 2020/21 prior to the COVID 19 crisis •With limited ability to generate new revenue streams, cuts to services have been the only way to balance the budget 3 Financial Challenges Today County ordered a shelter in place order in March of this year. Retail stores, many hotels, and restaurants close their doors completely as the community struggles to adapt to this extraordinary challenge. The stay-at-home orders issued throughout the nation has resulted in a significant decrease in spending on certain goods and services. 4 COVID Impacts Current FY 2019/20 As reported to Council on April 15th: •Closure orders have severely impacted sales tax and Measure Z revenues, as well as lodging occupancy •Lessees of city owned properties have requested waivers and/or cancelled leases 9.99%sales tax decline (3,828,670)$ 6.51%Measure Z decline (610,979)$ 11.60%transient occupancy decline (575,000)$ 18.78%use of property/leases (180,244)$ (5,194,893)$ projected revenue declines in current FY 2019/20 5 Budget Overview – General Fund 6 FY 2020/21 Budgeted Revenues $124,103,367 Decrease of 7% (8.9 million) from Pre- COVID Adj FY 2020/21 Budgeted Expenditures - $134,355,805 Increase of 6% (7.5 million) 641 employees proposed citywide Does not reflect deletion of 5 positions approved on May 21, 2020 General Fund Reserves General Fund FY 2020-21 Preliminary Budget Pre-COVID-19 Post-COVID-19 Beginning General Fund Balance Est. FY 19-20 29,276,621 29,276,621 COVID-19 Adjustment (5,094,251) Ending General Fund Balance) Est. FY 19-20 29,276,621 24,182,370 Beginning General Fund Balance Est. FY 2020-21 29,276,621 24,182,370 Proposed Revenues FY 2020-21 132,968,344 124,103,367 Proposed Expenditures FY 2020-21 134,355,805 134,355,805 Estimated Surplus/(Deficit) (1,387,461) (10,252,438) Projected Ending General Fund Balance FY 2020-21 Est. 27,889,160 13,929,932 15,260,400 32,517,700 30,218,400 38,995,700 31,543,452 24,182,370 13,929,932 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Actuals FY 2015 Actuals FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 FY 2020 Estimate FY 2021 Proposed General Fund Reserves FY 2014/15 to FY 2020/21 Proposed 8 126,883,000 132,098,466 126,903,574 132,968,344 124,103,367 126,827,000 134,365,299 134,365,299 134,355,805 134,355,805 118,000,000 120,000,000 122,000,000 124,000,000 126,000,000 128,000,000 130,000,000 132,000,000 134,000,000 136,000,000 FY 19/20 Adopted Budget FY 19/20 Midyear Estimates, Pre-COVID-19 FY 19/20 Year-End Estimates, COVID-19 Adj. FY 20/21 Preliminary Budget FY 20/21 Preliminary Budget, COVID-19 Adj. General Fund Revenues to Expenditures Revenues Expenditures 9 Overview of Key City Revenues 10 •City has many different revenue sources – some operating and some capital focused •Most support the General Fund and are unrestricted in nature – others accounted for separately due to their unique spending restriction •Review of the more significant revenues sources within the General Fund and the restricted sources FY 2020/21 General Fund Revenues by Category Charges for services, 5,789,015 , 5% Fines and forfeitures, 1,512,000 , 1% Franchise Tax, 10,130,000 , 8% Intergovernmental, 2,485,000 , 2% Investment income, 450,000 , 0% Licenses & permits, 10,987,079 , 9% Measure Z Sales Tax, 7,900,000 , 6% Miscellaneous, 2,781,056 , 2% Other Taxes, 2,782,685 , 2% Transient Occupancy Tax, 4,381,551 , 4% Property Taxes in Lieu of VLF, 18,316,742 , 15% Sales and Use Tax, 32,488,243 , 26% Use of Money and Property, 899,996 , 1% Utility Users Tax, 23,200,000 , 19% 11 General Fund Revenues •Total General Fund revenues - $124.1 million •Decrease of $7.9 million (6%) compared to FY 2019/20 Mid- Year Budget Post COVID Estimate. •Sales Tax decreasing by 6% •Measure Z decreasing by 10% •Property Tax increasing by 9% •Transient Occupancy Tax to remain flat 12 Overview of Key City Revenues •Sales Tax ($32.48M in FY 2020/21) •Largest source of revenue •1% piece of the local 8% tax applied to the sale of goods and some services •Projections based on known trends in the regional and state economy – forecast at 6% decline for FY 2020/21 13 Overview of Key City Revenues •The drop in sales tax revenue is predominately expected in the following sectors: •• General Consumer Goods (-16% or $1,280,479) •• Auto and Transportation (-26% or $1,455,108) •• Restaurants and Hotels (-23% or $1,041,537) •• Business and Industry (-13% or $785,079) •• Building and Construction (-18% or $599,381) •• Fuel & Service Stations (-12% or $381,601 14 23,003,496 27,698,937 33,959,397 35,315,122 38,337,628 38,323,670 34,500,000 32,488,243 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Actuals FY 2015 Actuals FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 FY 2020 Mid Projected FY 2020 Covid- 19 Adjustment FY 20/21 Preliminary Budget Sales Tax History 15 Overview of City Revenues •Measure Z ($7.9M in FY 2020/21) •Voter-approved .25% transaction tax added to the local sales tax rate of 7.75% for a total local rate of 8% •Expires April 1, 2022 – a 15 year tax •Functions exactly like sales tax, except for purchase of large vehicles (cars, trucks, aircraft, boats) – only assessed on City of San Bernardino residents’ purchases •Pre-COVID Measure Z revenues projected at $9.4 million. Post-COVID, revenues were adjusted down to $7.9 million. 16 7,119,294 7,905,634 8,559,046 7,453,728 9,717,123 9,378,979 8,700,000 7,900,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Actuals FY 2015 Actuals FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 FY 2020 Mid- Year Projected FY 2020 Covid-19 Adjustment FY 20/21 Preliminary Budget Measure Z History 17 Overview of City Revenues •Utility Users’ Tax ($23.3M in FY 2020/21) •Second largest City revenue source •Generated by a 7.75% tax on residents’ utilities by the service provider and remitted to the City •All utilities including electricity, gas, telephone (including cell phone and long distance), and cable television. •Makes projections more complicated as different industries have different trends/issues – landlines diminishing, weather patterns, satellite vs. cable •Conservatism applied – forecast for revenues to remain flat 18 23,986,813 23,591,923 23,666,459 22,924,522 23,300,000 23,200,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 22,000,000 24,000,000 26,000,000 FY 2015/16 Actual Amount FY 2016/17 Actual Amount FY 2017/18 Actual Amount FY 2018/19 Actual Amount FY 2019/20 Estimated Amount FY 2020/21 Proposed Budget Utility User Tax Revenue 19 Overview of City Revenues •Property Tax in Lieu of VLF • ($18.3M in FY 2020/21) •Property tax money swapped by the State when they cut the car tax •Grows like regular property taxes, benefitting when overall assessed value increases •Subject to the “VLF Sharing Agreement” with County, recently amended in City’s favor – City receives 73.5% of total VLF revenue •County provides indication of what total VLF will be in subsequent year – typically very conservative 20 30,145,233 12,983,755 17,429,345 16,054,643 16,805,900 18,316,742 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 FY 2015/16 Actual Amount FY 2016/17 Actual Amount FY 2017/18 Actual Amount FY 2018/19 Actual Amount FY 2019/20 Estimated Amount FY 2020/21 Proposed Budget Property Tax Revenue 21 Overview of City Revenues •Transient Occupancy Tax ($4.38 M in FY 2020/21) •Also called the “Hotel Tax” – 10% •Assessed on guests of hotels/motels for overnight stays •42 active hotels and motels in the city. •Projected to generate $5.05 million •Operators reported averaging an 80% occupancy rate, prior to March 1st. •Occupancy rate has decreased to 30% since March 1st. •FY 2020/21 revised down to $4.4 million 22 3,463,262 4,327,091 4,502,184 4,987,491 4,950,170 4,956,551 4,300,000 4,381,551 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Actuals FY 2015 Actuals FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 FY 2020 Mid- Year Projected FY 2020 Covid-19 Adjustment FY 20/21 Preliminary Budget Transient Occupancy Tax (TOT) History 23 Overview of City Revenues •Licenses and Permits ($10.98M in FY 2020/21) •Revenue collected from residents/businesses for the right to conduct an activity or build something in the City •Business Registration collections represent 79% of the total revenue •Fairly static revenue source as the municipal code has no CPI adjustment built in – vote of the citizens to change •Development related permits makes up the other significant piece of this revenue •Projections reflect a 4% reduction ($471,241) compared to PreCOVID estimates. 24 10,895,673 9,801,168 10,669,432 11,250,755 10,987,079 10,987,079 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 FY 2015/16 Actual Amount FY 2016/17 Actual Amount FY 2017/18 Actual Amount FY 2018/19 Actual Amount FY 2019/20 Estimated Amount FY 2020/21 Proposed Budget Licenses and Permit Revenue 25 Overview of City Revenues •Charges for Services (5.8M in FY 2020/21) •Collected for services provided to residents, businesses and guests – many different services •Development oriented fees from Community Development and Public Works are largest portion •Other fee centers are P,R & CS, Police and Library •Revenues include $975,000 in plan check revenues that were in the past collected into a deposit account. Moving forward, revenues will be recorded in the General Fund and with a corresponding expenditure. •Projection for FY 2020/21 reflects a 4.3% decrease ($260,000) from pre-COVID projections. 26 27 5,471,563 5,640,391 4,799,993 5,741,200 6,457,475 4,961,146 5,789,015 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Actuals FY 2015 Actuals FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 FY 2019/20 Estimated Amount FY 2020/21 Proposed Budget Charges for Services Overview of City Revenues •Franchise Fees •Projected to 10.1 million for FY 2020/21, same as FY 2019/20. •Reflects a modest decline of $355,000 (or 3%) from our pre- COVID 19 projections. •Use of Money and Property •Pre-COVID 19 projections for this category were projected to be $1,100,000 ; revised estimate is $9M •Several business leasing property from the City have requested a lease waivers or have cancelled their lease contacts with the City altogether •Big-5 Sporting Goods, Shandin Hills Golf Course & Regal Cinemas. 28 Overview of City Revenues Other Funds •Restricted Revenue Sources (Non-General Fund) •Housing and Urban Development Funds •CDBG, HOME, ESG, NSP programs •Funds to be used to target blighted areas meeting certain economic criteria •Gasoline Tax (including the new Gas Tax funding) •City’s share of the per gallon fuel tax paid by purchasers •Over $9M in FY 2020/21 funding •Restricted for use on street maintenance and construction projects 29 Overview of City Revenues Other Funds •Measure I Funds •Generated from a half-cent Countywide sales tax •Also restricted for use on street maintenance and construction projects •Subject to annual audit •Nearly $3.2 million projected in FY 2020/21 •Development Impact Fees •Various fees assessed to new development to recover the estimated cost of the impact associated with new development •Restricted to projects that relieve the impact associated with new development •Do not forecast development impact fees - conservative 30 General Fund Expenditures •Expenditures do not include proposed reductions. •Expenditures are up by 6% or $7.5 million compared to FY 2019/20 Adopted Budget. •Total General Fund Expenditures = $134.35 million •Status-Quo no new programs - departments held to existing levels •Salary and benefit costs are main driver of cost increases 31 FY 2020/21 General Fund Expenditures by Department Mayor 446,949 0% City Council 859,599 1% City Clerk 909,056 1% City Attorney 2,645,543 2% General Government 8,279,645 6% City Manager 3,132,592 2% Human Resource 1,274,413 1% Finance 3,735,783 3% Community & Economic Development 5,539,879 4% Police 84,558,984 63% Parks Recreation & Community 4,193,147 3% Public Works 16,788,078 13% Library 1,872,139 1% Assessment Districts 120,000 0% 32 General Fund Expenditures •Salary and benefits: •Addresses employee retention & attraction •Per previously approved MOU’s •Merit increases •No increases are included for cost of living adjustments or health insurance allowances •PERS unfunded liability payment: •Increased by $2.7 million •Total payment $26.5 million •City prepays in July to save approx. $912,475 33 General Fund Expenditures •Liability and Workers Compensation: •Liability and Property insurance premiums budgeted at $2,407,200. •Increase of 49% ($793,000) from FY 19/20. •Premiums for excess workers compensation coverage budgeted at $651,000. •Increase of 22% ($142,300) •Internal Service Charges: •While these departments held their service levels to FY 2019/20 levels, it is important to remember that the increases outlined here (merit increases, health insurance costs, CalPERS costs) also affect their bottom lines. This results in higher internal service charges to General Fund departments. 34 Departmental Budget Reviews 35 Animal Control Total Budget: $2,677,111 Consists of 2 Divisions – Field Services, Shelter Services 23 FTE’s proposed for FY 2020/21 Budget Highlights: Animal Control is now a department Director of Animal Services position created in FY 19/20 Departmental Budget Reviews 36 City Attorney Total Budget: $2,645,543 Consists of 1 Division - Municipal Legal Services 2 FTE’s proposed for FY 2020/21 (does not include deletion of 1 position approved May 21, 2020) Budget Highlights: Outside legal services has increased by $500,000 which is $900,000 less compared to FY 19/20 Amended. City’s last elected City Attorney expired in March of 2020, resulting in savings of $100,000 compared to FY 2019 Departmental Budget Reviews 37 City Clerk Total Budget - $909,056 Consists of 3 Divisions – Administration, Elections, and Records Management. 4 FTE’s proposed for FY 2020/21 Budget Highlights: Elections budget was increased by $90,000 to cover costs to the County related to upcoming elections Departmental Budget Reviews 38 City Council •Total Budget - $859,599 •Consists of 2 Divisions – City Council, Council Support •2 FTE’s and 7 Elected Positions Proposed for FY 2020/21 Budget Highlights: •Budgets largely consistent with prior year’s level of expenditures Departmental Budget Reviews 39 •Total Budget - $3,414,572 •Consists of 6 Divisions– Administration; Air Quality & Rideshare; Communications, Community Relations & CATV; Customer & Neighborhood Services; and Violence Intervention •17 FTE’s proposed for FY 2020/21 (does not reflect deletion of 5 positions approved in May 2020) City Manager •Recruitment Division (1 position and operating costs) transferred to Human Resources ($143,236) •(3) full-time positions from the Mayor’s Office to the City Manager’s Office as directed by the City Council on April 15, 2020 ($285,075) •Professional contractual services in the Violence Intervention Program (VIP) have been reduced by $175,000 compared to the FY 2019/20 Adopted Budget Budget Highlights: Departmental Budget Reviews •Total Budget - $29,882,911 •Consists of 7 Divisions – Administration, Building & Safety, Economic Development, Housing, Code Enforcement, Planning, Successor Agency •30 FTE’s proposed for FY 2020/21 Community Development •Code Enforcement Division transferred from Police ($1,285,703) •Land Development Division transferred to Public Works ($647,737). •Property Maintenance for costs related to properties held for re-sale transferred to Public Works (287,000) •$975,000 in revenues and expenditures moved from a deposit account to Community Development General Fund. Budget Highlights: Departmental Budget Reviews 41 Finance Total Budget - $3,735,783 Consists of 5 Divisions – Administration, Accounting, Budget, Business Registration, and Purchasing 23 FTE’s proposed for FY 2020/21 Budget Highlights: $180,000 set aside for various Audits. The Finance is on track to have audits completed on schedule. Departmental Budget Reviews 42 General Government •Total Budget - $10,002,666 •Costs attributable on a Citywide basis Budget Highlights: •Animal Control General Fund transfer - $2.3 million •Debt service payments - $2.5 million •Tax Sharing Agreements - $1.9 million •Citywide dues & subscriptions $125,700 •Cooperative Maintenance Agreements for the SB Depot and the Downtown Transit Center - $894,372 Departmental Budget Reviews 43 Human Resources Total Budget - $10,540,985 Consists of 4 Divisions – Administration, Recruitment/Administrative Services, General Liability and Workers’ Compensation 10 FTE’s proposed for FY 2020/21 Budget Highlights: 1 FTE transferred from the City Manager’s Office Property, excess workers compensation and excess liability insurance premiums continue to increase due to the current marketplace. Departmental Budget Reviews 44 Information Technology Total Budget - $4,573,761 Consists of 6 Divisions – Administration, Business Systems, Client Services, GIS & Office Automation, Network Services, Public Safety Systems 13 FTE’s proposed for FY 2020/21 Budget Highlights: After staffing costs, 70% of budget funds the annual cost for software maintenance, hardware support agreements and phone/network expenses Provides funding to continue the strategic replacement of the City’s personal computers (approximately 50 new machines) Departmental Budget Reviews 45 Library Total Budget - $2,187,024 Consists of 4 Divisions – Administration, Support Services, Central Library Services, Branch Library Services 11 FTE’s proposed for FY 2020/21 Budget Highlights: The proposed budget continues to fully fund the existing level of services being provided to the community through the Central Library and the three branch libraries system. Departmental Budget Reviews 46 •Total Budget – $466,949 •1 FTE and 1 Elected Position Proposed for FY 2020/21 Mayor’s Office •3 FTE’s Transferred to the City Manager’s Office Budgets Highlights Departmental Budget Reviews 47 Parks, Recreation and Community Services Total Budget - $5,057,757 Consists of 3 Divisions – Administration, Parks, Recreation, and Community Services •21 FTE’s proposed for FY 2020/21 Budget Highlights: New AED’s (Automated External Defibrillators) were purchased and installed at our five pool Aquatics have seen a rise in the number of overall attendees at open swim sessions Departmental Budget Reviews 48 Police Total Budget - $86,887,984 Consists of 4 Divisions – Executive Office, Investigations, Patrol, Administrative Services 365 FTE’s proposed for FY 2020/21 Budget Highlights: Code Enforcement Division transferred to the Community & Economic Development Animal Control Division now it’s on Department Contract costs for the body-worn camera program were transferred from the Asset Forfeiture Fund to the Police Department’s General Fund budget ($287,128) Departmental Budget Reviews 49 Public Works Total Budget - $26,669,125 Consists of 5 Divisions – Administration, Operations & Maintenance, Engineering, Facilitates & Fleet, and Environmental 111 FTE’s proposed for FY 2020/21 Budget Highlights: Land Development program transferred from CED to PW Property Maintenance transferred from CED and integrated into Facility Maintenance Maintains funding for traffic management studies, traffic counts, and professional/contractual budgets to support street maintenance. Budget Balancing Strategies •$7.2 million in budget balancing strategies are summarized below and are discussed on the following slides. •If the following measures are approved there will still be a remaining gap of $3 million to be addressed through employee concessions, additional layoffs and additional service cuts. 50 Strategies to Balance the General Fund Budget by Department 51 •On May 21st Council approved the following actions which resulted in savings of $477,491 •These actions will be implemented starting 06/01/2020 •The proposed budget balancing measures below will be implemented in FY 2021 City Manager’s Office & City Attorney’s Office Strategies to Balance the General Fund Budget by Department 52 Finance City Clerk Strategies to Balance the General Fund Budget by Department 53 Parks, Recreation and Community Services (PR&CS) Community & Economic Development Strategies to Balance the General Fund Budget by Department 54 Public Works Animal Services Strategies to Balance the General Fund Budget by Department 55 Police The impacts from keeping these positions vacant are: •Community Service Officer I positions – less CSOs available to respond to low priority calls for service in the field and at the front desk. This may result in longer response times and reduced open hours at the front desk. •Criminal Investigation Officer – keeping this position vacant could result in lower rate of completed follow-up investigations. •Personnel and Training Technician – internal processing of training needs within the department and hiring will take longer. •Records Tech I/II – slower processing times for records and reduced hours for processing LiveScan requests for the public and City Departments. Strategies to Balance the General Fund Budget by Department 56 Police- continued Staff is negotiating with the Body Worn Camera provider to lower the annual costs of the program: •Estimated savings is $60,000 •It is recommended that in the final budget all savings from the Body Worn Camera program be transferred to the Violence Intervention Program (VIP) to offset a three month delay in grant funding •No net impact to the General Fund, savings will be moved from the Police Department’s Budget to the VIP program in the City Manager’s Office Strategies to Balance the General Fund Budget 57 Use of One-Time Funds •Recent audits of funds with long standing balances and activity back to 2011 has identified $644,848 and $820,251 from the Grant Fund and Street Construction Fund respectively that should reimburse the General Fund. •Various items in both Parks and Recreation and the Library totaling $774,583 are recommended to be funded with Cultural Development Funds in FY 2020/21. •The Police Department has identified $287,128 in Evidence Impound funds that can offset allowable costs in the Police Department budget. These funds are sporadic in nature and cannot cover costs on an on-going basis. Strategies to Balance the General Fund Budget 58 Gas Tax & Traffic Safety Funds In order to create savings for the General Fund, staff is recommending the following shift in expenditures: •Transfer $630,000 of costs related to traffic signal maintenance out of the Gas Tax Fund and into the Traffic Safety Fund. $600,000 was budgeted in the Traffic Safety Fund for the purchase of new patrol cars, but it is recommended that the vehicle purchase be deferred. •The transfer of these expenditures out of the Gas Tax fund will eliminate the projected deficit of $174,974 in the Gas Tax fund at 6/30/21 and will create capacity in Gas Tax Fund to absorb $455,000 of General Fund/Public Works’ expenditures, which will reduce the General Fund deficit by this amount Strategies to Balance the General Fund Budget 59 Revenue Increases •Fee Study: •On May 6th, Council approved the recommended changes to the City’s Master Fee Schedule. It is estimated that revenue generated from the updated fees will total $967,400. •Cannabis Tax Revenue: •The city’s consultant (SCI) completed an analysis on tax revenues the city can expect from the tax cannabis. •$1 million is projected for FY 2020/21 •staff is recommending that $333,000 of this new revenue be utilized for enforcement related to illegal cannabis operations – staff will return to Council with a detailed enforcement plan 10-Year Budget Forecast – if $10.3 million deficit in FY 2020/21 is NOT resolved (Reflects Expiration of Measure Z in FY 2021/22) 60 10-Year Budget Forecast – Balanced Budget for FY 2020/21 (Reflects Expiration of Measure Z in FY 2021/22) 61 Requested Actions: •Staff requests approval to incorporate the budget balancing strategies outlined in this report into the final budget to be presented for adoption on June 17, 2020: 62 General Fund FY 2020/21 Proposed Budget General Fund Revenues 124,103,367 General Fund Expenditures (134,355,805) Surplus/(Deficit)(10,252,438) Additional revenues 1,634,067 Departmental reductions 2,636,098 Transfer of residual funds/audit close-out 1,465,098 Move Library/Parks & Rec. expenditures to Cultural Development Fund 774,583 Evidence Impound Fund transfer 287,128 Move Public Works expenditures to Gas Tax 455,000 Transfer Approx. $60k savings from PD/Bodyworn Cameras to VIP program (no net impact to GF)- Total Budget Balancing Strategies 7,251,974 Remaining Deficit to Bridge (3,000,464) •Staff will provide an update on June 17th for options to close the remaining $3 million deficit which may include: employee concessions, additional service reductions and/or employee lay-offs Conclusion – Next Steps 63 Budget Study Session – Capital Improvement Program June 10th Budget Public Hearing & Adoption – June 17th.