They feel it is a good idea to remove employees and departments from the General Fund. The idea seems to be to get each of these departments to pay for themselves. In the case of development services this will mean further increases in fees, which people are already complaining about. (Video of patio contractor), (Video of developer West) Development should pay for itself, but all of these fees are making housing even more expensive and not solving the problem of anything that is built requiring services from the city, which the city can not afford to provide.
The Development Services Department will start with a deficit. There is a fee subsidy (for hot water heaters) funded by the council that the General Fund will have to pay. This graph shows that as well as the large amount of overhead to be charged to the department. It also shows the General Fund crediting all development fee revenue to Development Services Fund. Why
Development Expenses are shown as revenue to the General Fund is not at all clear.
This slide shows how the total budget of $150.6 million is spent. 81% is spent on salaries and benefits.
Last year this funding ratio started going down for the first time. Obviously this is a reduction in services to residents and an increase in stress to employees as
fewer people strive to do more work.
Personnel Services $120.6 Million
The circle graph shows how the 81% of the budget going to personnel expenses is spent. PERS is retirement. Flex is the fund used to pay for medical expenses. Salaries are shown at 60% on this graft. Numbers are in millions of dollars.
Supplies and services are 11%. 3% of budget is utilities.
In 2013 the pension obligation bond will be paid off,
General Fund $150.6 million if the city doesn't refinance it before then to get cash.
History of Recent Budget Cuts