2013 Citizens Budget Review and Advisory Committee Releases Report

The 2013 Citizens Budget Review and Advisory Committee (CBRAC) has released its full report to the Garden City board of trustees as well as the Joint Conference Committee.

After attending all public work sessions, scrutinizing the 2013-2014 budget packages and even interviewing department management, committee members - all Garden City residents - rendered several "strategic and specific recommendations."

Preliminary recommendations were supplied to the board of trustees March 8 for immediate consideration in the draft budget (Appendix A, pages 10 to 14).

"We have shared the report with the BOT and, in general, were encouraged by the feedback that we received," Stephen Makrinos, CBRAC chairman, said. "The Committee welcomes the opportunity to work closely with the Finance Committee and, more broadly, with the BOT in the year ahead to help implement these recommendations."

A "prevailing theme" CBRAC members said they noticed during their overall review was that many of the difficult decisions the village has been forced to make in recent years have come at the expense of the village’s capital/infrastructure budget (e.g. building repair and maintenance being deferred, aging equipment with higher maintenance costs, and, in the case of the Garden City Public Library, a steady decline in the purchase of books).

With an initial budget that consists of 72 percent of labor-related costs, much of the “low hanging fruit” has been picked, according to the report. Without a meaningful increase in revenues, CBRAC members believe the village needs to take a closer look at the services currently being provided as well as the cost of providing these services.

"It has become evident at the budget sessions that personnel costs are beginning to impact the village’s ability to sustain facilities and services and the proposed budget should begin the process of addressing these issues," the report states. "Otherwise, the village may have to face more difficult decisions down the road."

Before offering department-specific recommendation, CBRAC members provided general recommendations they believe are applicable to "most, if not all" departments. According to the report, those recommendations are as follows:

• It is imperative that the village look to lower the labor-related costs, which have been increasing as percentage of the overall budget, through a combination of attrition, more favorable labor negotiation and, if needed, headcount reduction.

• Village residents should have a clear understanding of the costs associated with the services being provided by the village. As such, the CBRAC proposes that a detailed breakout of the capital and labor costs by department be made available to residents on an annual basis. As part of this increased transparency with village residents, a final version of budget book, including salaries and benefits, should be posted on the village website.

• To assist the CBRAC in their analysis next year, the Committee asks that each department provide job descriptions associated with each job title as civil servant titles have not kept up with the actual task being performed by village staff.

• Similar to the Garden City Fire Department, bring in industry consultants to evaluate specific areas such as quality and types of services provided, staffing, etc. Focus should be on one department per year.

• Offer a combination of cash incentives/public recognition to employees for proposing ideas cost-saving ideas. Proposals will be selected by board of trustees on a monthly basis. Amount of award will be determined by the board.

• Utilize grant writing consultants to help navigate the grant writing process.

• Look at village-wide solutions to potential power outages such as the installation of transfer switches to various facilities seeking generators (Village Hall, Fire Houses, Water Works) and either contract with third party providers to provide generators as needed or purchase one/two generators that can be rotated, as needed.

• Similar to the Garden City Union Free School District, look at upgrading village-wide HVAC, energy efficiency through energy savings performance contracts.

• The committee observed several instances where the drivers of budget increases was the payment to village employees for unused sick or vacation time earned in prior years. Since this pay was earned in prior years, the increase could have been avoided if the liability was recognized in the years in which they were earned, and paid for out of a reserve, instead of the current year tax levy. It is recommended that the aggregate liability accrued to date be determined and an accounting of the exposure of such future payments (earned, but not paid) be provided by the village auditor. It is further recommended that, as part of the year end close process, the village look to establish a reserve, so that these unused sick and vacation expenses are recognized in the year in which they are earned, and do not become the burden of future generations of taxpayers.