HomeMy WebLinkAboutAddendum to FIN-08-166 - Additional Potential 2009 Operating Budget ReductionsINTERNAL MEMO
City of Kitchener
City Hall, 200 King St. West
P.O. Box 1118
Kitchener, ON N2G 4G7
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*2,532,140 2.9%
Departmental Submissions3,671,007 4.2%
Less Cuts During Admin. Review(1,336,234) -1.5%
Position at Operating FCSC2,334,773 2.6%
Less Proposed Cuts @ FCSC(816,330) -0.9%
1.7%1,518,443
Less Additional Proposed Cuts(149,430) -0.2%
Proposed Base Increase1,369,013 1.6%
* Note: 0% increase on all discretionary spending budgets
Subsequent to the presentation of the draft operating budget on December 8, CMT 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 Roger LeBrun, CMA
General Manager of Financial Director of Financial Planning
Services & Reporting
Proposed Additional Budget Cuts
General Provision Reductions (reduce transfer to C/C)
DeptDivisionAmountDescription
CSDCapital10,000 Reduce Safe City Committee budget upon review of actuals
CSDCapital4,000 Reduce Community Centre general provision by 5%
CSDCapital2,000 Reduce Aquatics general provision by 5%
CSDCapital1,000 Reduce Cemetery Maintenance general provision by 2%
DTSCapital25,000 Reduce Miscellaneous Legal Surveys to reflect actuals
DTSCapital15,000 Reduce Small Projects/Equipment (general provision) to reflect actuals
DTSCapital27,000 Reduce Reconstruction - Various City Streets to reflect actuals
CSCapital20,000 Reduce FM/IT general provisions by 1% across the board*
104,000
Other Proposed Cuts
DeptDivisionAmountDescription
FSPurchasing1,000 Reduce rentals/leases - office equipment based on review of y/e actuals
FSPurchasing1,000 Reduce photocopy paper based on review of y/e actuals
FSRevenue4,830 Reduce fringe on wages (budget correction)
FSRevenue600 Reduce number of Vernon directories ordered from 2 to 1
CAOEc Dev13,000 Eliminate 1 of 2 co-op terms for an Economics student
CAOCommunications10,000 Reduce brochures expenses as a result of tender result for Your Kitchener
CSLicencing15,000 Increased revenue opportunity based on review of y/e actuals
45,430
Total Additional Cuts Proposed149,430
* Note: Excludes Auditorium, roofing, City website and WREPNET
THESE REDUCTIONS ARE NOT REFLECTED IN THE POWERPOINT BUDGET SUMMARY