Leave No Stone Unturned

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Leave No Stone Unturned

• Zane Johnston
• City of Tracy - Finance and Administrative
  Services Director
• 2003 CSMFO President

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Now may seem like the WORST time to be in local
government financeBut it is the time when your
community needs the BEST from you
3
Declining Revenues Increased Expenses
Unbalanced Budgets Uncertain
Economy Lack of Political
Will

• Your job is to find the solutions But How?

4
Three approaches that may help

• Look everywhere then look again
• Have short and long term solutions and link them
  together in a cohesive plan
• Use todays circumstances to put into place
  things will better serve tomorrow

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Look Everywhere Leave no stone unturned

• Boulders
• Rocks
• Pebbles

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Boulders Employee CompensationSome may not be
immediately achievable

• Salary
• PERS (employer and employee)
• Participation in health costs
• Furloughs

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Personnel Costs which you do control

• Staffing levels attrition, layoff, early
  retirement, etc.
• Use of Overtime
• Reorganization combine positions especially
  at high compensation positions
• Its not business as usual, may have to have less
  than perfect organization

8
Rocks some moderate revenues or expense
reductions

• Revised Fees but will anyone pay more?
• Consider setting limit to subsidy for a program
  area
• New Fees What are you giving away and to whom?
  example ALS
• Contract out some functions (consult labor)

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Pebbles theres a lot of them in the sea

• Fleet utilization fewer vehicles less to
  charge
• Accurate cost allocation plans and application of
  overhead charges
• Revisit CDBG or other funding
• Are you renting space? Reduce
• Eliminate low participation programs
• City supplied cell phones
• Reimbursement for professional staff
• Small fees for previously free services or events
• Energy efficiencies

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Short and long term solutions linked together in
a cohesive plan

• Short term or politically expedient OK but not
  if it is your only plan
• One time revenue OK if you are buying time for
  more long term solutions
• Cant just buy time and pray

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Use Todays circumstances to put into place tools
that will help for tomorrow

• Greatest economic downturn since Great Depression
  should produce some change of policy and attitude
• Now is the time to capitalize while it is being
  experienced and not just projected
• Sound Reserve policy
• Sound fiscal policies related to operating
  expenses, new programs, etc.
• Two-tier retirement and other benefits