Erika Brooks Juan Cabral Eddie Martinez Milton McKinnon Frank Wasko

Erika BrooksJuan CabralEddie MartinezMilton McKinnonFrank Wasko

PPD 541 Public FinanceSpring 2011

Incorporated in 1917 5 Square Miles 40,000 Residents 1 Mile from Beach 5 Member City Council Light Rail Culver City Unified School District 5 Elementary Schools 1 Middle School 2 High Schools West LA College Antioch University Pepperdine University

Background

#Employer# of Employees1Sony Pictures Entertainment2,0202Westfield Culver City1,5003Brotman Medical Center9004Symantec800Major Employers5.5% of Families and 8.6% of the Population are below the Poverty Line.

Median Household Income

Population by Race38,816 People 16,611 Households 9,518 Families Median age is 39 For every 100 females there are 87.5 malesPopulation by Age

Median Home Value

Average Temperature: 70 Warmest month is August Coolest month is December February is the wettest month

Education

City GovernmentCharter City: 1947Retirement System: PERS 2.5% @ 55 Years Misc. Employee 3% @ 55 Years Fire Department 3% @ 50 Years Police Department

Total City Workers: 649

RevenueCurrent Revenue StreamsBreakdown

Local Taxes $49.8MCharges for Services $55.6MFines & Forfeits $4MLicense & Permits $2.6MIntergovernmental $28MOther $14M49.8M 55M 4M 28M 14M 2.6M

ExpendituresBreakdownDeficit 8 MilliionStrategic Plan to Reduce Expenditures

Salaries & Benefits $88.6MOps & Maintenance $56.4MCapital Outlay $11.6MDebt Service $2M88.6M 55.4M 11.6M

Fund Balances

Review the General Fund Changes In Fund Balance Statement. Review whether the budget is balanced.Review whether revenues exceed expenditures.Determine how reserves will be impacted.Determine the unrestricted balances.Determine the total reserves.

ChallengesCalPERS retirement system increases: Losses must be recoupedSafety employeesMiscellaneous employeesMaking these cuts will increase the General Fund to an estimated figure of $3.9 million3.9 Million to be recouped in FY 2014-2015

Challenges Cont.Recognize the severity of the structural deficitRecognize the other long term financial issues that must be addressed in the futurePropose a budget that will bring current operating cost in line with current resources

Proposed Solutions

Implement a two year action plan to reduce expendituresFirst year: Workforce reduction of 60 positionsSecond year: Address remaining deficit through negotiations or further workforce reduction, or combination of both

Proposed Solutions

Miscellaneous: FY: 2010-11 (12.9%) FY: 2011-12 (13.60%) FY 2013-14 (15.84%) FY 2013-14 (18.22%) FY 2014-15 (18.49%)

Safety: FY: 2010-11 (26.52%) FY: 2011-12 (29.60%) FY: 2012-13 (34.43%) FY: 2013-14 (40.45%) FY: 2014-15 (41.14%)Questions