Mach 2 With Your Hair on Fire

1
Mach 2 With Your Hair on Fire

• Preparing Colorado Springs for the Boon

2
First Year Summary

• Two broken arms (husband)
• One broken nose
• Three emergency room visits (husband and wife)
• One hospital stay

We Memorial Hospital
3

• 12 speeches
• 24 Council meetings
• 79 Community meetings
• 57 Meet and Greets
• 1 Volunteer planting

4

• Two Culbreth family relocations to Colorado

5

• Seven bear sightings
• Two fox versus deer episodes
• Three sets of wild turkeys

6
Whats our Economic Condition?
7
Housing

• July YTD July YTD Change
• 2008 2007
• Sales 5,183 6,314 -17.9
• Ave. Price 244,454 263,389 -7.2
• Active Listings 6,544 7,065 -7.4

8
Foreclosures

• El Paso County
• July YTD July YTD Change
• 2008 2007
• 4,440 3,085 43.9

9
Construction

• July YTD July YTD Change
• 2008 2007
• SF Permits 1,126 1,887 -40.3
• SF Valuation 159 mil 327 mil -51.3
• MF/C Permits 16 45 -64.4
• Com Permits 1,257 1,488 -15.5
• Com Valuation 409 mil 351 mil 16.6

10
Employment

• June June Change
• 2008 2007
• Unemployment 6.1 4.3 41.9
• Employment 209,121 209,346 -.1
• Manuf. Emp. 16,200 17,200 -5.8

11
Manufacturing

• The Gazette reports
• Manufacturing, tech jobs slipping away from
  Springs Declines in past 7 ½ years have wide
  economic footprint
• --Wayne Heilman
• August 30, 2008

12
Sales Tax

• August YTD -3.83
• Areas of Strength Areas of Weakness
• Retail 3.82 Furn.App.Elect -3.13
• Hotel/Motel 10.19 Sales to busin -11.8
• Clothing 1.92 Dept/disc stores -9.72
• Grocery 5.12 Auto dealers -10.7
• Restaurants 5.46 Bldg materials -15.0
• Utilities 3.52 Auto repair/lease -.55

13
Why Top Gun?

• Because
• We Can Relate!

14
A Typical Day at the Office
15
Mach 2 With Your Hair On Fire

• Colonel Rick Martin
• Director of Operations
• Air National Guard

16
Mach 2 Lessons
Negative Gs Compression Oxygen Brain Activity
17
Negative GsCompressing the Organization
Reorganization/consolidation of city departments
reducing four departments, saving 500,000 (w/
32 addl positions 2.9m)
18
(No Transcript)
19
Negative Gs Oxygen Fund Balance History
20
Negative Gs Brain Activity Expenditure and
Revenue History
21
2008 Revenue Estimate

• Revenue
• Original Revenue Budget 237,255,088
• Budget Amendments 2,811,046
• Amended Budget 240,066,134
• EOY Revenue Est. 232,039,554
• Surplus / (Deficit) ( 8,026,580)

22
2009 General Fund Overview
23
Unfunded Liabilities

• Unfunded Liability Amount Description
• Other Post Employment Benefits 57,979,257 As of
  1/1/2007
• Pension Obligations (Old Hire) 19,989,512 As of
  1/1/2007
• Workers Compensation Fund 1,231,762 PV Est.
  Outstanding Losses
• as of 12/31/2004, less reserves
• General Liability Fund 651,526 PV Est.
  Outstanding Losses
• as of 12/31/2004, less reserves
• Health Insurance Fund 3,140,554 Unfunded reserves
  projected through 2009
• Other Unfunded Issues
• Unfunded Portion of 5 Year CIP plan 432,756,756 H
  igh Priority 285,858,655
• Vehicle and Equip. Replacement 32,000,000 as of
  2007
• Computer Replacement ? Undetermined
• City Facilities ? Undetermined
• The unfunded liabilities require additional
  analysis to determine if all have been identified.

24
Annual Structural Deficit
25
Mach 2 Lessons

• Preparation
• Training
• Maintenance
• Experience
• Well Equipped

26
Preparation Training2008 Fiscal Actions

• Salary Savings / Hiring Freeze 2.30 M
• Operating reductions 2.60 M
• Capital Outlay reductions 1.20 M
• Total estimated savings 6.10 M

27
Preparation MaintenanceBridging the Budget Gaps

• Revenue Increases
• Fund Balance Draw
• Program and Operational Cuts
• Elimination of vacant positions
• Layoffs / Furloughs
• CIP Reduction / Elimination

28
Preparation ExpertiseCouncil Approved Action

• Fund unexpected 3 million expense from 2008 fund
  balance
• City Manager to correct the 3.2 to 5.0 million
  structural deficit, including 2008 position
  elimination, City Manager departmental
  consolidation, and operational reductions
• Implement approved revenue increases through
  appropriate approval process
• Direct Sustainable Funding Committee to examine
  strategies for maintaining ongoing expenditures
  within available revenue and,
• Draft a policy to smooth revenue projections and
  expenses