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Minutes - Minutes - City Council - Meeting Date: 2/16/2010 (3) *PLEASE NOTE: Since the Glendale City Council does not take formal action at the Workshops,Workshop minutes are not approved by the City Council. "I'll GLENp MINUTES OF THE GLENDALE CITY COUNCIL WORKSHOP SESSION Council Chambers—Workshop Room 5850 West Glendale Avenue February 16, 2010 1:30 p.m. PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Manuel D. Martinez, and Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet, Yvonne J. Knaack, and H. Phillip Lieberman ALSO PRESENT: Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Craig Tindall, City Attorney; and Pamela Hanna, City Clerk 1. FY 2010-11 OPERATING BUDGET STRATEGY FOR THE GENERAL FUND— 60 MINUTES CITY STAFF PRESENTING THIS ITEM: Horatio Skeete, Deputy City Manager for Administrative Services and Sherry Schurhammer, Management and Budget Director This is a request for City Council to review the strategy for balancing the General Fund operating budget for FY 2010-11 in preparation for the first budget workshop that is scheduled for March 23, 2010. A budget workbook will be prepared and delivered to you during the week preceding the March 23 budget workshop. That workbook will contain: o the operating budget summaries by department and administrative group that have been included in prior budget workbooks, o the recommended capital improvement plan, including a discussion about the impact of further declines in assessed valuation, o a report summarizing the comments made at the community-wide public meetings scheduled for March 3, 4 and 8, 2010. The Mayor and Council's strategic goals continue to serve as the foundation for the development of the city's annual budget regardless of whether the economy is growing or contracting. Vision, 1 innovation, partnerships, and dedicated employees continue to play a central role in making the city's efforts over the past year rewarding and successful in areas of key importance to the Mayor and Council. The budget strategy proposed for steering the city through the remainder of this economic downturn continues to keep the city ahead of the curve when compared to other municipalities and positions the city to be ready for the eventual economic turnaround. For example, the city's Innovate Initiative is directly tied to the budget process and the city's strategic business model. Employees have been, and continue to be, actively engaged in making business-based recommendations for adjustments that have helped us prepare a balanced budget. Some adjustments will result in expenditure savings while others, through changes in process or structure, result in efficiencies not currently captured. Yet other adjustments will result in new or improved revenue streams for the General Fund. Other steps that have positioned Glendale to be ahead of the curve include innovative expenditure management measures such as furloughs. Glendale was the only valley city to adopt this approach including adjustments to represented labor agreements. Revenue enhancements have been pursued such as new agreements for electronic marquees and revised agreements for the placement of cell phone towers on city property. In addition, Glendale has remained at the forefront in bringing high quality economic development to the city. Over 3,000 jobs have been brought to Glendale in the past two years. The most recent acquisition is the recent Humana Pharmacy Solutions announcement to fill the Glendale 91 class A office space. The budget strategy is built around a strategic, business-based and phased approach. This strategy sustains core city services that serve the community, ensures the smooth operation of the overall organization and minimizes, to the extent possible, impacting other services provided to the community. This strategy also represents the measures needed now to address: o The short-term outlook(next fiscal year)for reducing expenses to address constrained revenues, o The long-term outlook for ensuring the city has business delivery systems that enable us to be responsive when the economy turns around. In evaluating measures for balancing the FY 2010-11 budget, it is important to recognize that a municipality is a service organization. Therefore, continuation of the phased budget strategy is appropriate as it takes us through a series of steps that are designed to attain a fiscally responsible budget while not severely diminishing the valuable services we provide to the community. The short-term outlook for next fiscal year requires realigning resources based on the business needs of the community and the level of resources we can afford. This means we must adjust 2 our delivery system to match the peak demand times for services. We are also reviewing the useful life of all equipment and capital assets by extending their service life as long as efficiency of service delivery would not be affected. The intent of these steps is to sustain the city's core services that serve the community and ensure smooth operation of the overall organization while we continue to strategically manage our way through this current economic downturn. The long-term outlook requires strategically investing in business delivery systems and realigning functions that enable us to be responsive when the economy fully recovers. Some strategic investments that have been undertaken in an environment of constrained resources include the following: o Upgrade of the city's tax and license technology system that will reduce manual processing of tax and license filings, simplify and shorten transaction times for customers, improve the turnaround time for management reporting and improve revenue recovery efforts. o Realignment of functions within the city to reposition programs based on the needs of the community and based on the recognition that some programs will continue to be provided by non-profits and/or the private sector. o Upgrade of the city's time and labor technology system that enable us to track employee time associated with targeted projects and activities to better evaluate the true cost of service. This strategic, business-based and phased approach includes a mix of ongoing and one-time budget measures, as was done for the FY 2010 operating budget. It also includes several expenditure reduction steps that will be implemented administratively through the year as conditions warrant. Those administrative steps are as follows: o Eliminate 100 existing vacancies in the General Fund that were created as a result of freezing positions that became open due to the retirement program initiated in the spring of 2009 as well as normal attrition during the FY 2009 and FY 2010 ($7.3M, line 7, table 1). These vacancies exclude sworn positions in public safety. o Continue the same furlough program that was implemented on a voluntary basis during FY 2009 and became mandatory for FY 2010 ($3.0M, line 8, table 1). All non-represented employees participate in the plan. o Continue mutual consideration of adjustments to MOUs for represented employees ($0.6M, line 9, table 1). o Implement business-based reductions ($14.7M, line 12, table 1)to reflect the savings we anticipate in the GF as a result of additional program and service adjustments as explained below. 3 • Programs that were not paying for themselves or achieving the targeted contributing rates are being evaluated for reduction or elimination. • Services for which demand has diminished, and an uptick in demand is not expected for the next fiscal year or so, were identified for adjustment. • Hours of operation for some facilities are being evaluated for adjustment during slower times of the day. • Some activities offered by others in the community are being evaluated for elimination and low-use facilities are being evaluated for closure. The program and service reductions totaling $14.7M are being developed after an extensive evaluation of operations and in conjunction with a comprehensive business plan review by the departments. This work included an in-depth evaluation of the needs of residents, City Council strategic goals, demand for services and available resources. This evaluation also included an identification of programs that appear to be duplicative. This evaluation process actively engaged departments and individual employees in making business-based adjustments that focus on the long-term, strategic business plans that furthers City Council's strategic goals and maximizes limited resources. These changes will be implemented in phases so any staff reductions can be minimized through attrition, including retirements, and a reorganization and realignment of staffing. Public safety provided reductions that equate to 10% of their respective operating budgets once vacant positions are included. All other departments provided reductions that equate to 10% to 27% of their respective operating budgets once vacant positions are included. Table 1 — GF Operating Budget Balancing Summary Line 1: Ongoing revenue $144.4M Line 2: Revenue enhancements (incl $1.5M lx) $2.9M Line 3: Total revenue $147.3M Line 5: Base budget $164.0M Line 6: GF transfers $14.9M Line 7: Eliminate 100 existing vacancies (as of 1/28/10) ($7.3M) Line 8: Continue 5%furlough ($3.0M) Line 9: MOU adjustments ($0.6M) Line 10: Reinvestment Strategy ($6.0M) 4 Line 11: Remaining shortfall: $14.7M Line 12: Business-based program and service reductions ($14.7M) across all departments The steps that require Council policy considerations involve revenue enhancements (line 2) and reinvestment of other fund balances (line 10). Revenue enhancement measures are an extension of the strategic, business-based approach undertaken on the operational and expenditure side. In this case, however, the focus is on recovering revenue for services already provided to the community and at a level that reflects the current market in the valley. The revenue enhancement measures include some items already approved by City Council such as electronic marquees. Others will require council action and are mentioned below. They will be discussed in more detail during the budget workshops when departmental staff will be prepared to bring these ideas forward for Council consideration. o Account for new revenue from additional electronic marquee sites and two new license agreements for fiber and gas lines, all of which were approved by City Council in December 2009. o Implement a transaction fee for pawn shops and other types of second-hand stores to reflect the cost of complying with state requirements to report all transactions to local police and to reflect the fees charged by other valley cities. o Adjust fees charged for wireless facilities placed on city property to reflect the fees charged by other valley cities. o Implement a fee for expedited permitting of wireless towers. o Implement a fee for required fire safety inspections of buildings and other types of inspections completed by the staff of the Fire Marshal's Office. o Adjust liquor license fees to reflect the level and type of fees charged by other valley cities. o Implement a new annual facility program in development services to provide inspections and plan reviews for new construction and major remodeling projects routinely undertaken by medical and higher education facilities. o Implement a premium parking fee for use of the city's covered parking garages during the city's special events held in the downtown area. The reinvestment of other fund balances measures involves investing restricted funds in higher- yielding government obligations. This allows these funds (landfill and perpetual care) to earn higher rates of interest in a low-interest earnings market while reducing general fund interest expenses. 5 Table 2 reflects the anticipated general fund, budget-basis balance calculation for FY 2011. We expect to have a general fund balance (budget basis) of $14.7M and this amount would be appropriated as the general fund contingency appropriation for FY 2011. The $14.7M equates to a 10% contingency. The city's financial policies, as stated in the annual budget document, recommend a 10% general fund contingency based on 10% of the expected general fund revenue for the upcoming FY. Table 2 — FY 2011 GF Fund Balance & Contingency Appropriation FY 2011 beginning fund balance (budget basis) $23.7M lx transfers to other funds ($7.7M) PAYGO capital ($0.8M) Econ Development obligations/other ($0.5M) FY 2011 ending fund balance $14.7M 10% contingency appropriation $14.7M On June 23, 2009, City Council conducted a public hearing and adopted a resolution approving the FY 2009-10 final budget. This final budget included a general fund operating base budget that was $26.5M or 14.6% less than the FY 2008-09 general fund operating base budget. Glendale's budget is an important financial, planning and public communication tool. It gives residents and businesses a clear and concrete view of the city's direction for public services, operations and capital facilities and equipment. It also provides the community with a better understanding of the city's ongoing needs for stable revenue sources to fund public services, ongoing operations and capital facilities and equipment. The budget provides Council, residents and businesses with a means to evaluate the city's financial stability. All budget workshops are open to the public and are posted. Community-wide public meetings on the proposed budget reductions for FY 2010-11 are scheduled for March 3, 4, and 8. Details regarding the material to be addressed at these meetings will be available to the public in advance of the meetings. Today's workshop is for information only. Decisions on the FY 2010-11 budget will not be requested until the budget workshops are held in March and April 2010. 6 Mr. Ed Beasley, City Manager, introduced the item and provided a brief summary on the past year and the policies enacted to balance the budget in this economy. He discussed the challenges facing the city and staff's recommendations for the coming year. He stated that the proposed budget will focus on Council's strategic goals and core services. He emphasized that there is a phased process to follow that will lead the city to a balanced budget for next fiscal year. He said the city is a service organization that relies on employees to provide services to the community, so we must recognize that fact in implementing budget reductions. Mr. Horatio Skeete, Deputy City Manager for Administrative Services, stated that they were once again faced with another challenge this year regarding the budget. This means that decisions must be made about the best way to strategically align the city's resources. He explained the city was facing challenging times, however, was not unique, since many cities were also facing the same challenges throughout the country. Mr. Skeete said the budget strategy for FY 2011 is directly tied to Council's strategic goal as they are the foundation for developing the operating budget. He noted that this strategy is built on a strategic, business-based and phased approach that sustains core services with a focus on health and safety. He said there will be a continuation of the same strategies begun last year. Some of the strategies begun last year have served the city well and will continue to help the city in this recession. He discussed how the hiring freeze, furloughs and labor agreements, which helped the city through FY 2010, will continue in FY 2011. He continued by saying that staff has been reviewing new ideas to ensure we are operating efficiently and effectively. Employees will continue to be challenged to come-up with new ideas and opportunities. Staff is also using a process called "Lean" to review procedures throughout the organization to eliminate any waste and enhance customer service. He stated that in the course of the realignment process proposed, they will be able to get through this next year. Vice Mayor Martinez asked for clarification on the realignment process. Mr. Beasley explained that part of the realignment process was the natural attrition of approximately 100 people leaving the organization. In addition, another 100 employees will be eligible for retirement. He indicated that once we had a better idea of vacancies that will be created due to attrition and retirement, then there will be a review of the positions and vacancies that need to be filled or eliminated. Vice Mayor Martinez thanked Mr. Beasley. Mr. Skeete stated staff will be presenting a balanced budget with a variety of options in the next month for discussion. Councilmember Clark asked if a strategy is in place if the economy did not turn around. She noted that all their strategies centered on the economy getting better; however, what if this was the new norm. Mr. Skeete stated they were considering all options. They were positioning themselves for the possibility of growth should the economy turn around, however, if not, they will continue the strategies being put in place now. Councilmember Lieberman asked how many open positions they had available that were not being filled. Mr. Skeete asked Ms. Sherry Schurhammer, Management and Budget Director, to further explain. Ms. Schurhammer stated the budget that will be presented at the March 23 workshop will based on the policy direction that Council has provided. To balance the budget it is recommended that 7 the city continue the savings measures currently in place. Specifically, staff recommends eliminating100 existing vacancies in the General Fund that were created as a result of freezing positions that became open due to the retirement program initiated in the spring of 2009, as well as normal attrition during the FY 2009 and FY 2010. In addition, the same furlough program in place now will be continued in FY 2011. Staff also recommends continuing mutual consideration of adjustments to MOUs for represented employees, as well as implementing business-based reductions. Mr. Art Lynch, financial consultant, explained the reinvestment strategy item shown on the slide. He said the city was looking at conservative systematic and innovative financial approaches that enable the city to weather the storm of economic downturns. As a result, the city will come out in a stronger position. He indicated that this rational and conservative financial approach provides the city with long term opportunities. He said the city will continue to focus on new ways to create new revenue streams and reduce costs in innovative refinancing methods. He noted the Council has been very supportive of recommended practices concerning financial issues, investments and budget capacity matters. He said staff will continue as a result of Council's support to look at innovative techniques that allow for the reinvestment process enabling the city to increase its investment income while also taking advantage of the opportunity to lower its borrowing cost. This will improve not only the budgetary needs of the city, but provide benefits in its cash flow. Additionally, it also provides the flexibility to restructure and react as the economic landscape unfolds or stays the same. Ms. Schurhammer continued with her presentation. She said the remaining shortfall is $14.7M after accounting for the furlough, elimination of 100 frozen positions, labor adjustments and the reinvestment strategy that Mr. Lynch explained. She said the program and service reductions totaling $14.7M were developed after an extensive evaluation of operations and in conjunction with a comprehensive business plan review by the departments. Overall, departments supported by the General Fund provided reductions that equate to 10% to 27% of their respective operating budgets once vacant positions are included. She stated that all departments were asked to focus on continued implementation of best business practices that are aligned with Council's goals and core services, particularly those related to health and safety. This evaluation process actively engaged departments and individual employees in making business-based adjustments that focus on the long-term, strategic business plans furthering City Council's strategic goals and maximizing limited resources. Ms. Schurhammer said the reductions will be implemented in phases as the city looks at everything to help balance the budget for next fiscal year. This phased process will help minimize staff reductions because it will allow the city to account for vacancies created through attrition, including retirements, and a reorganization and realignment of city services. Ms. Alma Carmicle, Human Resource Director, stated her belief that having the right people providing critical services was just as important as balancing the budget. She explained that other cities had gone directly to layoffs as a means to balance the budget; however, Glendale has recommended a series of steps and processes before they have to get to that point. She noted that as part of this process, her department worked with employees through focus groups representing various departments. She said these focus groups discussed the possibility of a workforce reduction, continuation of the furloughs and voluntary retirements as suggested by many of the 8 employees as a better alternative to layoffs. Other suggestions included looking at several city services that could possibly be eliminated or reduced, as well as ending subsidy services. She explained how every year the HR department collects data on attrition. She noted that last year, 140 positions were eligible for retirement and approximately 53 took retirement while others are waiting for a higher year of services that will help them in the future. She explained that after retirements and attritions occur, the realignment will take place to restructure the organization to become more efficient and streamlined. She said they will be educating employees on this process. Additionally, employees were also concerned about their benefits since it represented a large portion of the city's budget. She discussed the audit that was done on the benefit package for entitled employees and their dependents. She asked Ms. Lupe Sierra, Deputy Director, to speak further on the audit and employee benefits. Councilmember Clark stated she needed further clarification on Ms. Carmicle's presentation. She provided an example of a higher paid experienced employee retiring and a lower paid employee taking his/her place. She asked how a position was determined critical and how they determined cost savings if they were simply moving a lower grade person during realignment to that position. Ms. Carmicle explained that the critical process assessment will be based on evaluation of work in that area and the position's relevancy. In addition, replacing a retiring employee at a high pay scale with another employee at a competitive rate will insure significant savings in similar instances. Essentially, staff is replacing a function with a person who exited the organization at about $75,000 a year with a person at a mid-range rate based on the duties that will be preformed. Councilmember Clark remarked she was still not clear on what determined a critical position. Mr. Beasley noted this will be part of budget discussions that will be taking place in the near future. However, as a preface to those discussions, the core services that Council has identified are what drive the critical positions. Council will have another opportunity to review those services that they deem important to the city. He noted that at Council's retreat, it was suggested staff bring forward and assess all city programs. Councilmember Clark remarked that the priorities she had in November might have changed since then. She believed back then that the economy might have been in an upswing, however, is not so sure now. She asked what they as a Council could do to express any changes in philosophy they might have since the November retreat. Mr. Beasley indicated no one was sure of the future of the economy; however, they were trying to position themselves the best way possible. He added that even with the current economic uncertainty, the city will continue to provide core services that are critical and will not be affected. Mayor Scruggs commented on the "new norm" that was occurring today as a response to the bad economy. She stated the "new norm" means a reduction in the workforce and the elimination or reduction in services. She remarked that there was no question they were positioning themselves for the "new norm" for the foreseeable future. She discussed the changes that have occurred since she was elected to office. She has noticed that streamlining has been taking place more and more. Mr. Beasley said she was correct. He noted that even if a position was eliminated due to its relevancy, the employee may be moved to another department that requires his or her particular skills. Mayor Scruggs noted they needed to adjust to the "new norm" and understand the current situation the country was in. Mr. Beasley explained this realignment must be done right in order to be successful in the future. 9 Councilmember Clark discussed the five core essential services critical for a municipality to survive: water, sanitation, sewer, fire and police. She stated everything else was up for consideration. She noted she would like staff to provide additional information on why they believe other areas outside the critical five should not be considered. Mayor Scruggs commented on behind the scenes services outside the five mentioned that the city needs to survive such as accounting, purchasing, tax and licenses and so on. Councilmember Clark agreed, however, suggested that those departments could benefit and should be looked at for realignment to run more efficiently. Ms. Lupe Sierra, Deputy Human Resources Director, provided an update on the employee benefit program. She stated the benefit program was a significant impact to the city's budget. She explained that every year when renewing the benefits program, they look at every opportunity to neutralize the cost as much as possible. She remarked there was some good news to report on this issue. She said there will be no new cost increases to the city, employees or retirees for next year. She explained they were taking advantage of opportunities and have negotiated well with vendors. Additionally, they have identified $500,000 dollars in savings with the health benefit employee dependent audit. She stated that with eliminating ineligible dependents, they will also be saving on premium and claims cost making them a more efficient organization. Staff will also be looking at minute clinics, emergencies and wellness care options. She noted this will be the third year with this rate structure and they are very proud to bring the city these savings. Mayor Scruggs commented on how her daughter uses the minute clinics, which help her get in and out quickly. Ms. Sierra stated they had lobbied for this benefit and it will become effective starting in April. Councilmember Knaack commented on how proud and fortunate the City of Glendale employees were to still receive these great benefits when a lot of businesses have stopped because they could not afford them. She commended staff for a great job on this item. Councilmember Clark agreed and thanked Ms. Sierra for her continued dedication and great work accomplished every year. Mayor Scruggs also thanked staff for all they do on this issue. Ms. Pam Kavanaugh, Assistant City Manager, commented on the three public budget meetings scheduled for March 3, at the Foothills Recreation and Aquatic Center; March 4, at Desert Mirage Elementary School; and March 8, at City Council Chambers. Citizens will have the opportunity to review the information on the city's website at www.Glendale.az.com and also available in hard copy at different locations around the city starting February 19. In addition, the public will also have a hotline set-up for citizens to express their views by phone at 623-930- 2440 effective February 19. She said Council will be receiving a packet of information by March 19 that will include all public comments from the three meetings, hotline and website as well as staff's budget information. The first budget meeting will be held on March 23, 2010 and will continue into April. Vice Mayor Martinez remarked on the 5:30 p.m. time scheduled for public meetings. He stated the time was too early and difficult for people to make and was afraid of a low turnout. Ms. Kavanaugh stated the March 8 meeting was scheduled for 6:30 p.m. for those who were just getting out of work. Vice Mayor Martinez stated he still felt it was unacceptable and they could do better. Councilmember Lieberman agreed and stated other meetings have been moved because some were not able to make the early time. Councilmember Clark also agreed and suggested no earlier than 6:00 p.m. Councilmember Goulet explained that part of the reasoning 10 for an early start time was because some people do not want to stay late. He agrees with a start time of 6:00 p.m., however, the public will have three opportunities to attend any of the meetings on their own schedule. Councilmember Knaack suggested something in the middle starting at 6:00 p.m. to 8:00 p.m. Councilmember Frate remarked that 5:30 p.m. was not unreasonable for some. He agreed that the public will have ample opportunity to attend any of the three meetings, as well as voice their opinion by phone or email. He noted most citizens will make time if they really want their opinions heard and the city was doing their best to accommodate everyone. Councilmember Clark stated she wanted to make clear to the citizens that Council was not only going to be listening to staff's recommendations, but also soliciting feedback from citizens as to what is critical and important to the community. Mayor Scruggs asked if someone were to arrive an hour late, will they still be able to contribute or do they need to be there for the whole presentation. Ms. Kavanaugh explained that Ms. Schurhammer will be presenting an overview of the budget process at the beginning of each meeting and the next portion will be a question and answer period. The information that will be presented at each meeting will also be provided at the website. Mayor Scruggs recommended anyone wishing to attend come early so as to avoid repetition and duplication so others will be able to move forward with new observations. She noted it was important to get a community feel of the issues and not only one person's point of view. Councilmember Clark asked if they had agreed on a start time. Mayor Scruggs stated the majority of the Council had recommended the 6:00 p.m. to 8:00 p.m. time slot and she was in agreement. Councilmember Frate commented that many citizens were not comfortable speaking in public and will use the e-mail or hotline system. Ms. Kavanaugh explained that the hotline will have a recording and citizens will be allowed two minutes; however, anyone needing additional information can call and speak to a live person. She said that anyone who was not comfortable speaking at the meeting will be able to fill out a comment card that will be incorporated into the information the Council receives. Councilmember Goulet suggested putting Ms. Schurhammer's presentation at the public budget meetings on-line. Ms. Kavanaugh yes, stated possibly the meeting in the City Council Chambers. Mayor Scruggs stated everyone's opinion was important and will provide them with ideas of what was most used and needed in the community. Councilmember Clark discussed the disparities in civil community activism in the north and south communities of Glendale. She noted that geographically, the southern part of the city has areas socially and economically depressed which could impede them having a voice at meetings. Also, these areas lacked people that were internet savvy. She indicated that in this instance, they will rely on staff recommendation as to how certain facilities in areas are used, however, this was an issue that needed to be recognized. Councilmember Goulet disagreed with Councilmember Clark's comment, especially since two of the meetings were taking place in the southern part of the city. He explained that in his experience, there has never been any hesitation from people telling him what they don't like about the city and how it's run. He stated that the city was doing everything possible to encourage and provide as many options for participation as possible. He also disagrees that less internet savvy people reside in the southern area and noted issues will not be decided on how many votes are received by people in different areas. He stated that these public meetings were 11 for citizen participation, opinions and input on what they value. Mayor Scruggs agreed with Councilmember Goulet's remarks. She added it really just came down to how much people cared about their community and if they were willing to take part of their day to provide input. Councilmember Lieberman explained that people respond to a crisis situation and believes that the impacts of this economy will draw interest from the general public. He stated he expects 70 to 200 people to attend these meetings. Mr. Beasley stated he appreciated all their comments. He said the public budget meetings will provide information on which services are valued, but the budget has to be balanced. He indicated that Council will be provided a list of things that could be done to adjust the budget. Additionally, in the general fund budget, staff was not recommending a tax increase or any public safety cuts. Councilmember Clark explained that her earlier comments were only a reaction to a misinterpretation she heard stated and felt the need to address it. She was only reacting to that misunderstanding and misspoke. Mayor Scruggs remarked this was the first time the city had attempted this public budget venture. Their goal is to reach as many people as possibly in the community and solicit their input. She noted that in addition to input from the community, staff will also be doing evaluations on actual usages of those services. Councilmember Goulet thanked the budget department for their creativity as well as Mr. Lynch for his financial initiative. He inquired if staff had thought of generating revenue for services they provide as a way to help balance the budget. Vice Mayor Martinez commented on his meeting with Ms. Pam Hanna, City Clerk, which informed him of things they were doing to generate funds from services they provide. He stated he felt very good about the up-coming meetings. He thanked city staff and the focus groups for all the work they have done up to this point. He asked the Council to look at their budget of $35,000 and possibly reduce it at a time when everyone else is cutting back. He believes this should be done as a body and not just one or two individual members. Mayor Scruggs remarked that she does not receive these budget funds from the city. Councilmember Frate recognized the employee groups that were in the audience who had done a lot of work to provide input on behalf of the employees. He stated he values their input and thanked them for being at today's meetings. Mayor Scruggs remarked on last year's shock pertaining to the furloughs and budget cuts; however, this year everyone has been more proactive and willing to take the initiative for themselves and the city. Councilmember Lieberman commented that some Councilmembers have already returned some of their budget funding, including himself and Vice Mayor Martinez. His returned funds totaled $14,000. As there were no further comments, Mayor Scruggs adjourned the meeting. ADJOURNMENT The meeting was adjourned at 3:00 p.m. 12