Do you know the numbers?

I knew we had a problem; I didn't know the numbers.

DID YOU KNOW.... that 70% of the city's general fund budget (money not in a dedicated reserve fun) is spent on personnel services?  A study on personnel costs done by a sharp-eyed (MBA) member of the Citizen's Budget Committee revealed some startling data.  By researching and compiling this data, the city can begin to talk about the state of our finances with clear, objective facts.  Gerry Good has done the city a great favor - one that should be done routinely to examine how much and where our tax dollars are spent, and the value of city services.  The budget must include personnel reductions if there is to be significant change to its growing expense vs income problem.

Lake Oswego's expenses will exceed its revenue in just 24 months.  

Lake Oswego has more employees than other cities in Oregon of similar size, as well as number of number of employees per capita.  (Number of employees is expressed by FTE - Full Time Equivalent).

Lake Oswego was compared to 6 other cities with populations between 25,300 and 49,700: Grants Pass, Keiser, Oregon City, Tigard, McMinville and Tualatin.  Numbers are rounded.

To see and hear the PowerPoint presentation from the Budget Committee Meeting, see the  VIDEO.   Proposed 2014-2015 Budget Draft is HERE.  Below are some numbers from that sharp-eyed member of the Citizens' Budget Committee!

 * * * * * * *

OVERALL INSIGHTS:  

• Lake Oswego has the most FTEs on a gross and net basis; this is after a reduction of 10 positions during the last budget cycle
• Lake Oswego has significant variances in some departments 

THE NUMBERS:

• Total number of employees:  LO =  352.1  |  Avg. others =  199.7
• Employees per capita:            LO =  9.39    |  Avg. others =  5.77

Figures for 2013-2014 are after a reduction of 10 FTE in last budget cycle.  

• Percent of FTE per capita compared to partial-service* cities:  LO =  6.68  |  Avg. other = 4. 80  *Measurement is without Public Safety and other departments since some cities share these functions with other entities.  Lake Oswego is considered a full-service city because all of its services are done with city employees or subcontractors, not with other government entities. 
• Average cost per employee including salary and benefits is $120,000
• Annual rise in employee compensation = 6%
• Annual rise in property tax revenue = 3%

* * * * * * *

Annual rise in personal income in Clackamas County  2008 - 2012 = 1.81%*  and 2000-2012 = 3.24%*   Rise in retirement income for USA  2012 - 2013  =  2.6%.*  Personal income for all groups may also be flat or negative for some individuals.  Annual rise in utility costs = ?    * US Bureau of Economic Analysis    

The ability of residents to keep up with the growing 

cost of government is unsustainable!

Severe financial impacts are being felt now, and residents of all income brackets, fearing a more expensive cost of living in the future, have moved out of town or are making plans to do so.  

Departments with a higher than average number of FTE per capita:

Public Works      LO =   76.8  |  Avg. =  40.2

Other LO Departments showing significant differences --

IT                           
Library                      
Parks and Rec                    
Planning