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Home My WebLink About1991-12-09 92-52 ORDERDate 12-09`91aw1 Item Na ap_ci Item/gublect: gmBR, provic ing (atirlaae ab DdrBotlml to City Staff xe3atfa9 W the c.m� of flue M3 Budge[ and the Responsible Department �1 of ExppendiNce s For Hae Resagu az� of M2 Commentary: Osydac for pal requueated t3et thfe iter be Placed on the Couocfl Agenda for the X. Since it well received � the agntla sale printed, it is ford W you separately. Itt leas leas added to the publialalrl Agmia for Mo relay and can be teleea tkp without suspenafors Iff row. ' dpmn.m uwn Manager's Comments: Cily MOvger Associated Information: Order, attachment Budget Approval: Fiwn,a 0i eovr Legal Approval: _ City Sdivi,or Introduced For ElPassage ❑ First Reading Pap — of _ ❑Referral A,mgned lo Connalov 12-52 Councilor Baldaxf CITY OF BANGOR (TITLE) VY rba Prrnrnnaiog oaitlarce_ani Directlan to City Staff.F.latrag to. the iWa8fa thO pxepatatimn of tle M3 Budget and the Control of Expmlitt¢ea fox the la9pai>rlet of M2 By Ow C:ix Caewii of W CiW ofBaxpm: ORDERIM THAT the attacieA docvreat fs beteyy adopted ty t City Cau cil fox pyp¢Tme of p idit guiiatce mW dir Tion to City staff re tfti to tle of HH He M3 budget and e cmtxol of expenditures for the xmain�r^+��^ of M2. In City Council December 9,1991 Afe�8n of the rules Passed Refer to Finance Cammittee Amend above motion as follows review by full Council at a time Nen all:sebers of council can attend emended motion approved CityclU r In City Council January 13,1992 Indefinitely Postponed Vote 6 yes 2 no 1 Absent voting yes Blanchecte,Cohen, sawyer,sazi.snncy,Stone'` voting No Baldacci,Prabel Absent Bragg .City Cle 92-5F ORDER Title, Providing Guidance and Direction to ...................................... City Staff relating to the Preparation of the Fy99 Budget enf the control of ...........a .i..t...............2 6 Pa yy OU . ��Aminn/ignned^^to ....... ... ........... Councilaan We, the undersigned City Councilors, recognize the difficult economic times. We realize that it is important to control the property tax burden that the Citizens of Bangor endure. The trend has been a reduction in services with an increase in property taxes. We feel that this trend should end. Because of reduced revenue from state andfederal sources and theimpactof apooremrtomy, the CityCuuncilmust take measures within its control to minimize and elevate the impact that these factors can have on increased property taxes. Prior to submission of the Manager's proposed budget, the Department heads should be given the following guidelines by the City Council to followwhen they prepare their individual budgets. These guidelines should include the following: Consolidation and centralization of resources; pooling of personnel; reduction of management,zero-based budgetingwith suffioentdetailed justification of any increased expenditures; each deparbnent should strive to maintain effectiveness while increasing efficiency. Below are some of the areas that should be addressed for the upcoming budget process. Condition #1. The recent problems at State level are being passed down to the cities and towns. Bangor must share in the spending reductions and, In addition, must conserve cash. Spending for operating expenses, inventory and capital should be carefully reviewed and controlled. Any savings made during the last six months of 1991-92, in excess of reduced income, will benefit the following year. The following actions should be taken: 1. Hiring to fill open positions and replace openings that develop should be frozen Deviations from this policy must be approved by the Finance Committee. 2. AB temporary positions should be reviewed and eliminated unless they contribute directly to the vital services of the city. 3. All expenditures, including personnel, inventory, capital, that do not directly contribute to the vial services of the city, in excess of $1,000.00, must have prior approval of the Finance -Committee. 4. The fact that an expenditure is budgeted does not remove it from the force of items 1 thru 3. 5. All items affected by this procedure, reviewed by the Finance Committee will be listed in the minutes of each meeting with the derision made. This will keep the full Council informed. Condition #2. 1992-93 Budget. Control of what happens in themming budget year cannot be leftto the City administration and school departments to present proposals in March -April and then try to make adjustments. The City Council most give each of these two areas maximum expenditure guidelines which they must meet. If the guidelines result in a direct effect on city services or classroom teaching, the specific situations will be spelled out in the budget presentations as a part of the budget document ' Based on the City Council's advance review of the condition #3, they will be in a position to make recommendations based on their opinions on what is or isn't essential to operations. The City Council will direct the Finance Director N present an income comparison between the 1991- 92 budget and expected revenue for the 1992-93 year, based on current information available. Income for the year 1992-93, will not include revenue from reserves or a cash surplus/deficit calculation. Before making a decision on the amount to be allocated in 1992-93 to thetwo departments, $500,000.110 wiH be deducted from the projected revenue as the addition to the reserves as provided in the recent Charter change. The comparison from the Finance Director will be due prior to the that regular City County meeting in January 1992 Allotted amounts to city operations and the school department will be made known to by January 15, 1992: Condition #3. The City Council most make decisions on the 1992-93 budget from an informative position. This position can best be developed from an understanding of the major cost factors in the current 1991-92 budget and their relative importance to the key services needed and mandated for city and school operations, and how these was appear in the 1992-93 budget proposals by comparison with 1991-92. Information required from the 1991-92 budget from city operations and the school department is as follows: 1.Mandates. Each mandate, federal or state, imposed in the last 4 years will be listed with expenditures (reasonablyprojected) and any knowndirectfundingfromotherthancityderived revenues. Expenditures should be estimated by cost category, such as salaries, supplies, rental, special personnel, etc. 2. Salaries. Each individual with directresponsibility over others will prepare the following for their area: a a simple organizational chart listing positions by title. b. a supporting sheet for each position with the following data: 1. position title. 2. salary or hourly rate contained in the 1991-92budgetand also the 1988-89 budget. 3. work schedule information (day shift, second shift, third shift, weeks -days per year, etc.) 4. priority rate 0 w 10,10 being highest) then direct relationship to actual perfor. mance of key services, (public works, police, fire, classroom, key administrators). For example a clerk in the policedepartment mightnotrate highly whereas a line police officer would. 5. the informationprepared by each supervisory person would be submitted to the person to whom they report The process would be repeated until the final summaries would be in the hands of the city manager/school superintendent. ALTHOUGH COM- MENTS MAY BE ADDED AS THE PROCESS CONTDMFS UPWARD, NO CHANGES FROM 1 ORIGINAL DOCDMENT MAY BE MADE. S. Major mstitems. Any cast totalling $20,000 (excepting salaries and wages) in the city operations or school department will be fisted showing the total cost areas casts; its contribution to the necessary services of the city/schools operation; maintenance of city facilities; possible means to reduce the cost. Such cast items might be fuel oil; gas, electricity; maintenance agreements; special personnel; retirement costs; rental of equipment medial, property, liability and other insurance; equipment purchases; sharing of facilities and equipment dues and memberships, both personal and city/school; etc. 4. This information will include the enterprise funds and any service fully funded from sources other thanlocal. lhis information for city operations and schools will be submitted to the City Council no later than January 31,1992. It wih give the members of the Council the ability to discuss their opinions on certain costs with the city manager, and also answer any questions the school superintendent may ask for darification. Such an approach will smooth out lasiminute decisions and also may present some areas of consolidation and savings between departments and also between the city operations and school department. COUNCrLCRS.