As we face tough budget decisions and more
reductions in services, residents want to know, “How did we get into this
situation?” There are many reasons, but I will focus on just one this evening.
Because employee costs account for more than 80% of a
city’s budget, payroll represents the single largest cost factor.
With that in mind, between 2001 and 2007, 197 new
full-time city employees were added to the workforce, a 13% increase. I should
note that the number of hourly employees has remained fairly static at around
500 per year and their costs are not factored in here. The number of full time employees was 1692 in
2001 and 1885 in 2007. While payroll increased by 13%, the population of
A fluctuation of 3%, up or down, in the general
population is normally absorbed in a municipality like
Last year the city spent $55 million more than it took
in. According to your revised budget numbers for this fiscal year that are
found on page 3, and again on page 7, of the staff
report, the city is projected to spend $88 million more that it will take
in.
If your financial projections hold for this fiscal
year, the city will post a combined deficit spending of $285 million since
2002.
Presented by:
Bruce Philpott
818.240.8949
brcphilpott1@aol.com