CITYWIDE: INCREMENTAL BUDGET SAVINGS PLANS
The City is perpetually challenged to close a sizeable gap between General Fund expenditures and revenues.
Estimated Implementation Costs:
Barriers to Implementation:
When dealing with multi-million dollar budgets, resourceful financial managers are capable of squeezing modest efficiencies and cost savings from a number of budgetary cost centers. Following the appropriation process, City managers should be directed to limit their department expenditures to a level slightly below the legally appropriated budget. These savings can be easily accomplished by delaying the hiring of non-critical personnel, delaying or reducing purchases of materials and supplies, or not expending the fully budgeted amount for a professional services contract. While a budgetary savings of less than two percent of a department’s budget might seem inconsequential, when aggregated across the totality of the City’s General Fund budget, the savings can be significant.
Utilizing information from the FY2000 Adopted Budget, were the City to institute incremental budget savings plans for just its General Fund expenditures and achieve a total cost reduction of between .25 and 1.5 percent of its General Fund budget by having departments manage to the incremental budget savings plan as opposed to the adopted appropriation levels, a total cost savings of between $2 and nearly $13 million could be achieved.