Workshop agenda packet - Laserfiche WebLink

Page 4 of 16 Cost-Saving Actions Taken to Address the General Fund Deficit In light of the City’s financial challenges, the City Council directed staff to implement strategies to begin to address the identified issues with the General Fund, including reducing costs and identifying new revenue sources. The City Council approved $2.5 million in reductions from the current fiscal year’s budget (see the City Council Agenda Packet from May 21, 2024, at the link https://pleasantonca.portal.civicclerk.com/event/137/files/agenda/354). Further reductions to the General Fund will necessitate continued community input and City Council approval, as additional changes/reductions will impact service levels, including fewer employees to do the work. Key actions already taken are described below. 1. Redirecting Capital Improvements Funds At the March 19, 2024, City Council meeting, the City Council defunded/deferred $18.9 million in General Fund-supported capital projects to fund critical storm drain projects resulting from the 2023 winter storms (see the City Council Agenda Packet from March 19, 2024, at the link https://pleasantonca.portal.civicclerk.com/event/135/files/agenda/231). 2. Limiting City Staffing Levels As a full-service organization, the City relies primarily on employees to deliver a range of municipal services. The number of budgeted General Fund positions has remained flat over the past five years. Multiple positions have been frozen, meaning the positions will be held vacant until funding can be identified. 3. Controlling Contract Service Costs and New Services and Programs The City has reduced costs associated with contract and professional services, including for technical support, communications, program/department strategic plans, system implementation, etc. In addition, City departments are not permitted to start new services and programs funded by the General Fund, which has stifled innovation and measures that could improve service levels (e.g., drone program for Police Department). 4. Delaying Projects and Purchases of Vehicles and Equipment Critical projects, such as Fire Station 2 (identified as a priority renovation/rebuild project over a decade ago) and other City facility renovations have been deferred (including the police gun training range and secure parking, HVAC projects, and many others). Purchases of non-essential vehicles and equipment have been delayed or have been downgraded, resulting in more costly maintenance bills and issues with regulatory agencies. 5. Reducing City Staff Travel and Training Budget The City’s current Travel and Training Budget has been reduced by nearly 22% from the adopted fiscal year 2023/24 budget. About half (47%) of the total $538,000 annual Page 6 of 109