HomeMy WebLinkAboutFIN-08-166 - 2009 Operating Budget - Potential Reductions and Addendum Report Jan.7/09I L REPORT 74
Report To: Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
Date of Meeting: December 8, 2008
Submitted By: Dan Chapman, General Manager of Financial Services
Prepared By: Roger LeBrun, Director of Financial Planning & Reporting (2339)
Ward(s) Involved: ALL
Date of Report: December 4, 2001
Report No.: FIN-08-166
Subject: 2009 Operating Budget — Potential Reductions
0144 MEN 0
For discussion
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On Monday, December 8, 2008 the Finance and Corporate Services Committee will review the
2009 Operating Budget. This report is an addendum to the Operating Budget package and
provides additional information regarding potential reductions. The reductions outlined in the
attached appendix are proposed to achieve the $800,000 target referenced in the budget
submission.
FINANCIAL IMPLICATIONS:
As detailed in the attached information
N/A
Dan Chapman, CA MPA
General Manager of Financial
Services
W) E
--loger LeBrun, CMA I
Vrector • Financial Planninj
& Reporting
CITY OF KITCHENER
:-ist of Potential 2009 Operating Budget Reductions
Description
Amount
Fund certain I.T. licencing costs from capital
40,000
Reduce I.T. staff training
15,000
0% increase to the Telephone/Computer Reserve Funds
43,000
Eliminate replacement equipment account (FM)
8,000
Eliminate the transition of part-time to full-time hours (FM - Security)
17,130
Reduce staff training supplies (FM)
2,500
Eliminate temporary labourer position (FM - vacant)
45,700
Reduce various line items (Corporate Services GM Admin)
1,000
Eliminate Overtime (Legal)
3,000
Reduce staff training (Legal)
500
Do not lease Williamsburg Community Centre
100,000
No increase to turf crews (Operations to Service Growth)
135,000
Road patrol - winter (Operations)
21,500
Eliminate Communitech grant
30,000
Eliminate Chamber of Commerce payment for Physician Recruitment
20,000
Eliminate vacant position (held in Vacancy Management)
96,000
Reduce traffic calming
50,000
Reduce slurry seal program (adjust capital transfer)
20,000
Reduce sidewalk infill program (adjust capital transfer)
20,000
Reduce office and computer supplies / printing (DTS Admin)
5,000
Eliminate 1 of 2 coop student positions (Planning)
30,000
Reduce Planning Division overtime
5,000
Confidential Items (Caucus)
108,000
I
Date: January 7, 2009
To: Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
From: Roger LeBrun, Director of Financial Planning & Reporting
cc:
Subject: Addendum to Report FIN-08-166 (Potential Budget Cuts)
BACKGROUND:
In June 2008, a Budget Call was issued to City departments which outlined allowable budget
increases for 2009 . The pro forma base increase target was 2.9% which translated to a net
levy increase of $2,542,140. This increase included an inflationary factor of 0% for most
discretionary budget lines.
RATIONALE /ANALYSIS:
The following table summarizes significant reductions made during the administrative review
process as well as those that were proposed during the operating budget presentation on
December 8, 2008.
Base Increase Summary
Pro Forma Target*
215321140
2.9%
Departmental Submissions
3,671,007
4.2%
Less Cuts During Admin. Review
(11336,234)
-1.5%
Position at Operating FCSC
213341773
2.6%
Less Proposed Cuts @ FCSC
(816,330)
-0.9%
1,518,443 %a
1.7%
Less Additional Proposed Cuts
(149,430)
-0.2%
Proposed Base Increase
1,369,013
1.6%
1* Note: 0% increase on all discretionary spending budgets
Subsequent to the presentation of the draft operating budget on December 8, CIVIT continued to
review opportunities for sustainable budget reductions without major service impact. Staff have
identified additional opportunities for budget reduction which amount to $149,430, comprised of
$104,000 in reductions to capital provisions and $45,430 in additional operating cuts. Details of
the additional proposed cuts are identified in the on the following page.
Dan Chapman, CA MPA
General Manager of Financial
Services
Roger LeBrun, CMA
Director of Financial Planning
& Reporting
Proposed Additional Budget Cuts
General Provision Reductions (reduce transfer to C/C)
Dept
Division
Amount
Description
CSID
Capital
10,000
Reduce Safe City Committee budget upon review of actuals
CSID
Capital
4,000
Reduce Community Centre general provision by 5%
CSID
Capital
2,000
Reduce Aquatics general provision by 5%
CSID
Capital
1,000
Reduce Cemetery Maintenance general provision by 2%
DTS
Capital
25,000
Reduce Miscellaneous Legal Surveys to reflect actuals
DTS
Capital
15,000
Reduce Small Projects/Equipment (general provision) to reflect actuals
DTS
Capital
27,000
Reduce Reconstruction - Various City Streets to reflect actuals
CS
Capital
20,000
Reduce FM/IT general provisions by 1% across the board*
1041000
Other Proposed Cuts
Dept
Division
Amount
Description
FS
Purchasing
1,000
Reduce rentals/leases - office equipment based on review of y/e actuals
FS
Purchasing
1,000
Reduce photocopy paper based on review of y/e actuals
FS
Revenue
4,830
Reduce fringe on wages (budget correction)
FS
Revenue
600
Reduce number of Vernon directories ordered from 2 to 1
CAO
Ec Dev
13,000
Eliminate 1 of 2 co-op terms for an Economics student
CAO
Communications
10,000
Reduce brochures expenses as a result of tender result for Your Kitchener
CS
Licencing
15,000
Increased revenue opportunity based on review of y/e actuals
45,430
149,430
Total Additional Cuts Proposed
Note:
Excludes Auditorium, roofing, City website and WREPNET
THESE REDUCTIONS ARE NOT REFLECTED IN THE POWERPOINT BUDGET SUMMARY