1978 ADJ MTG MIN JUN 13 - Laserfiche WebLink

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programs at -the added expense in -the long run. Also each permanent position that comes open should be carefully reviewed as to -the need and effect on -the level of services. I would strongly recommend -that services provided by -the City which are in terms of overtime and equipment for parades, little league, fiestas, etc. be reviewed as to cost effectiveness -to the City. The Mayor and City Council should make every effort to gear City operations on an economical and effective business basis. Most ser- vices -that -the City provides cannot and perhaps should not be measured by profit but by service; however, in view of Proposition 13 services will have to be measured in -terms of availability of funds -to pay for these services. I am presenting -two alternatives for -the Mayor and Council. Alterna- tive "A" concept can be expanded -to a possible ten alternatives, all of which will necessitate -the need for cuts in services and lay-offs of personnel. Alternative "B" provides for contracting services out -that could be provided by private enterprise at a lesser cost, yet maintain -the level of services. Alternative "B" would put all enter- prise funds on a strict business relationship with the City. As you know, -the City for many years had charged -the Enterprise Funds (Electric, Water, Sewer, and Refuse) for administrative costs, collection costs, and in -lieu taxes of the General Fund in an attempt to properly reflect -the -true costs of operating these Enterprises. For the most part, however, these costs have been calculated as a Q percentage of gross revenues which are not reflective of the real costs involved. In order to substantiate -these charges, I am submitting the following formula and justifications for your consideration. Administration & Collection Costs Certain City Functions are used to relate -to -their counterparts in private industry. Noting -that -the budgets of these functions involve the entire City, direct costs to the Enterprises were arrived at through -time studies; level of responsibility; number of customers; and various other cost accounting criteria. City Function / Distribution Corporatate Counterpart City Council 25.00 Board of Directors City Manager 25.00 President City Attorney 25.00 Corporate Attorney Personnel 23.26 Dept. of Human Resources City Treasurer 52.02 Corporate Treasurer Finance Administration 18.97 Vice -Pres., Finance General Services 37.68 Purchasing Auditor/Analyst 50.00 Internal Auditing Accounting 50.00 Accounting Dept. Utility Billing 100.00 Sales & Accts. Rec. Taxes & Receivable 75.00 Credit & Collections Insurance 21.10 Risk Management The difference in revenue to the General Fund is as follows: Present Formula 342,560 Proposed Formula 370,295 Increase to -the General Fund $27,735 JUN l '0 7978