Page 418 - Keller FY20 Approved Budget

iv. Implement Community Communication Plan in order to communicate to citizens any
service levels that may be impacted.
d. Improvement in Economic Conditions. When the estimated annual revenue equals or
exceeds the budget projections for 3 consecutive months, and economic indicators are
anticipated to continue to improve, initiate normal operating procedures.

2. Level II: The estimated annual revenue is below budget projections for 6 consecutive months.
Current economic conditions and indicators are anticipated to continue.
a. Expenditures:
i. Implement a managed-hiring program for vacant positions.
ii. Reduce the hours/number of part-time and seasonal employees as per Reduction In
Force Policy.
iii. Reduce travel and training expenses.
iv. Review and prioritize reductions of operating and capital expenditures.
v. Eliminate or defer capital outlay expenses.
vi. Review and prioritize expenses for professional and contracted services.
b. Revenues:
i. Evaluate user fees in order to remain competitive.
ii. Identify and/or implement new revenue sources.
iii. Evaluate property tax rate increase.
iv. Evaluate water and wastewater rate increases.
v. Evaluate use of available fund balance.
c. Service Levels Impacts:
i. Cutbacks or reductions in non-essential day-to-day operations (number of times parks
are mowed, hours of operations of facilities).
ii. Defer general (non-essential) maintenance.
iii. Prioritize and defer or freeze vehicle replacements, computer upgrades and new
computer purchases. Replacements for essential non-working equipment are
allowed, subject to approval by the City Manager.
iv. Reduce or defer non-essential repair and maintenance expenses. Examples –
vehicles, communications, office equipment, machinery and buildings. Repair and
maintenance of essential non-working equipment is permitted, subject to approval by
the City Manager.
d. Improvement in Economic Conditions. When the estimated annual revenue equals or
exceeds the budget projections for 3 consecutive months, and economic indicators are
anticipated to continue to improve, initiate Level I.

3. Level III: The estimated annual revenue is below budget projections for 9 consecutive months, or
is below budget projections by more than 6% for 6 consecutive months. Current economic
conditions and indicators are anticipated to continue or possibly worsen.
a. Expenditures:
i. Prepare for implementation of a Reduction in Force Plan.
ii. Implement a compensation freeze.
iii. Identify overtime expenses that may likely be reduced.
iv. Reduce external program funding.
v. Eliminate or defer pending capital improvement projects.
vi. Consider deferring payments to City-owned utilities – water and wastewater services.
b. Revenues:
i. Recommend property tax increase.
ii. Recommend water and/or wastewater rate increase.
iii. Recommend new revenues, or increases in current fees.
iv. Recommend use of available fund balance.
c. Service Level Impacts:
i. Significant reductions in service levels.
ii. Evaluate and/or recommend a reduction in hours of operation at all facilities.
iii. Essential programs and services will be evaluated for reductions.
iv. Reduce energy costs through reduction in hours of operations.
d. Improvement in Economic Conditions. When the estimated annual revenue equals or
exceeds the budget projections for 3 consecutive months, and economic indicators are
anticipated to continue to improve, initiate Level II.

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