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HomeMy WebLinkAbout2010/06/03 - Agenda Packet - Specialti fib/ ~ ~°• ~ ~ - f% AGENDA CITY COUNCIL, FIRE PROTECTION DISTRICT AND REDEVELOPMENT AGENCY SPECIAL MEETING Thursday, June 3, 2010 ~ 5:00 p.m. City Hall 4 Tri-Communities Room 10500 Civic Center Drive ~ Rancho Cucamonga, CA 91730 A. CALL 'I'O ORDER 1. Pledge of Allegiance 2. Roll Call: Mayor Kurth Mayor Pro Tem Michael Council Gutierrez, Spagnolo and Williams B. COMMUNICATIONS FROM THE PUBLIC This is the time and place for the general public to address the City Council on any item listed or not listed on the agenda. State law prohibits the Council from addressing any issue not previously included on the Agenda. The Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the Council, not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, making loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting. The public communications period will not exceed one hour prior to the commencement of the business portion of the agenda. During this one hour period, all those who wish to speak on a topic contained in the business portion of the agenda will be given priority, and no further speaker cards for these business items will be accepted once the business portion of the agenda commences. Any other public communications which have not concluded during this one hour period may resume after the regular business portion of the agenda has been completed. 1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCAL YEAR 2010/11 D. ADJOURNMENT I, Debra L. McKay, Records ManagerlAssistantGty Clerk, of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on May 27, 2010, per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California. NOTICE OF SPECIAL MEETING Notice is hereby given that the City Council/Fire Protection District/Redevelopment Agency will hold a Special Meeting on Thursday, June 3, 2010 at 5:00 p.m. in the Tri-Communities Room at City Hall, located at 10500 Civic Center Drive in Rancho Cucamonga, California, for the purpose of: 1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCAL YEAR 2010/11 ~~9~~ Donald J. Kurth, M.D. Mayor May 27, 2010 MEMORANDUM QTY MFWAGER'S OFFICE Date: May 19, 2010 To: Mayor and Members of the City Council From: Jack Lam, AICP, City Manager Subject: RECOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET ~_ ~ ar ~~ RANCHO C,UCAMONGA Continued Economic and Fiscal Challenges The proposed FY 2010-11 Budget reflects the ongoing realities of a deep national and state recession affecting all public agencies. The economic downturn that has resulted in ~-revenue declines beginning in Fiscal Year 2007-08 continues to this day and has not yet abated. These revenue declines have a significant affect on the City's ability to maintain high levels of service. As a result, cost cutting measures designed to adjust to these revenue declines have been ongoing the past two fiscal years and will continue through FY 2010-11. The budget strategy to date has been to achieve a "softer landing" utilizing gradual, strategic cuts, natural attrition and judicious use of reserves so that essential services to the public are disrupted the least amount necessary. As a result, the core City services, while strained, have remained relatively stable due in large measure to the extraordinary effort by existing staff. Under great pressure, the staff, to its credit, has taken on significant additional burdens while continuing to provide quality services even as the City's staffing resources have shrunk. The calculated use of reserves has enabled the City to pursue a series of measured actions to deal with declining revenues. Reinforcing this strategy is the fact that during this cost cutting, Standard & Poor's conducted a regular credit review of the City of Rancho Cucamonga and upgraded the City's credit rating to AA. It should be emphasized that to date the City has had the ability to take less invasive approaches in dealing with anticipated budget shortfalls. However, ongoing risks include the uncertainty as to how long the recession will continue and the possibility that revenues could continue to decline. The City will reach a point in time, very soon, when the combination of declining revenue and deteriorating services will trigger the need for measured consideration of more difficult measures, including service level reductions and personnel layoffs. The proposed Fiscal Year 2010-11 Budget has approached the turning point, beyond which if revenue declines do not bottom out or improve in the remainder of 2010, service level reductions must be considered in 2011. Two additional factors which cannot be calculated into the budget equation at this time are: (1) What additional collateral damage any actions by the State in addressing its budget crisis will have on our local revenues, and (2) Whether labor will relieve the County of the additional burden of salary increases which, if not mitigated, will add an additional $1.5 million to the City's Sheriff contract. REOOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET MAY 19, 2010 PAGE2 Operating Budgets The operating budgets in Rancho Cucamonga are comprised of the following: • City General Fund • Fire District Operational Fund • Library Operational Fund Each of these operating budgets in their own way has experienced varying declines since FY 2008- 09 and the proposed FY 2010-11 Budget reflects this as well. The following charts illustrate these budget declines. Operating Budget Comparisons City General Fund Budgetary Comparison $72,000,000 $70,000,000 $68,000,000 $66,000,000 $64,000,000 $62,000,000 $60,000,000 $58,000,000 - _~~„ - ~t'o~iu'M^. • F` 'i d y. x ',. ' ~ 'NC l b;. FY 2008/09 FY 2009/10 FY 2010/11 Fire District Operating Funds Budgetary Comparison $26,500,000 $26,000,000 $25,500,000 $25,000,000 $24,500,000 $24,000,000 FY 2008109 FY 2009/10 FY 2010/11 RECOMMENDED FISCAL YEAR (FI') 2010-11 BUDGET MAY 19, 2010 PAGE 3 Library Fund Budgetary Comparison $4,600,000 $4,500,000 $4,400,000 $4,300,000 $4,200,000 $4,100,000 $4,000,000 $3,900,000 $3,800,000 FY 2008109 FY 2009/10 FY 2010/11 .F _. n`. ~ ' 4 x.li 4 , ~k c. ~ a. y ~. -.i~F x i'S's All the City's main operating budgets are lower than in the prior years. This is due to a number of reasons including: 1) retail sales have declined; 2) property reassessments and foreclosures have resulted in lowering of property tax revenue; 3) transient occupancy tax (TOT) has declined due to fewer business travelers; and 4) franchise fees for gas and electric are down due to reduced consumption. These revenue declines are symptoms of a prolonged economic downturn that affects the entire nation, what some have dubbed "The Great Recession." While the entire nation has been affected, Southern California has been hit especially hard. Just as the national impacts of the recession have varied from region to region, so to have the declines in revenue affected each operating budget differently, with the most difficult reduction at this time impacting the City General Fund. Key Revenue Declines Citv General Fund. The City General Fund budget, which supports the majority of City services, is made up of a number of major revenue sources. General Fund revenue for FY 2010-11 is projected to be $62,794,080, which is $3,630,420 or 5.5% lower than in FY 2009-10 and $7,294,910 or 10.4% lower than FY 2007-08. Key City General Furid revenues include: • Sales Tax • Vehicle License Fees (VLF and Motor Vehicle In Lieu) • Franchise Fees • Property Tax • Development Fees • Business Licenses • Transient Occupancy Tax (TOT) The most significant revenue source in the City General Fund is sales tax. Sales tax, which represents 34.2% of total General Fund revenues, has been declining since 2007, and the forecast for FY 2010-11 is $7,113,150 or 24.8% below FY 2007-08. The decrease in sales tax from FY 2009-10 is estimated to be $1,807,180, or 7.7%. These declines include the "triple flip' revenue received from the State. RECOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET PAGE 4 MAY 19, 2010 Vehicle License Fees and Motor Vehicle In Lieu fees have decreased $624,870 or 4.1% from FY 2009-10 and show a cumulative decrease from FY 2007-08 of $462,160 or 3.1%. Franchise fees have declined $1,011,910 or 14.4% from FY 2009-10 and show a cumulative decrease from FY 2007-08 of $906,220 or 13.1 %. Property Tax revenues have decreased slightly overall by $78,390 or 2.0% from FY 2009-10 and show a cumulative decrease from FY 2007-08 of $161,450 or 4.1%. While Building Permit Fees have grown slightly since FY 2008-09, all other development fees have decreased $50,000 or 2.6% from FY 2009-10 and all development fees show a cumulative decrease from FY 2007-08 of $2,152,950 or 42.9%. Business Licenses revenue has increased $126,090 or 6.2% from FY 2009-10 but shows a cumulative decrease from FY 2007-08 of $90,530 or 4.0%. The Transient Occupancy Tax has decreased $319,850 or 16.2% from FY 2009-10 and shows a cumulative decrease from FY 2007/08 of $15,460 or 0.9%. Together, the non sales-tax cumulative revenue declines noted above have been approximately $3.8 million dollars since FY 2007-08. - City of Rancho Cucamonga Cumulative Decreases in Key Revenue Sources .1 million decree $462K decrease $908K decease _ S1Q_1K decrease 2.1 million decrease $90K decrease -I--.--~~ .,.K decrease Adopted FY 2007/08 Adopted FY 2008/09 Adopted FY 2009110 Estimated FY 2009/10 Estimated FY 2010111 Sales tax tVLF and In Lieu of VLF Franchise fees Progeny taz -Mf-Development fees f'Busihess licenses +Translent occupancy taxes While there have been recent national media stories about increased economic activity, actual revenue received by the City does not occur until approximately 6-8 months after consumer expenditures. Accordingly, based on the most current data available to the City for sales tax and other key revenue indicators, local revenues still have not stopped declining. Revenue "flat lining" }ZECOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET MAY 19, 2010 has yet to occur. Overall, economists are predicting that FY 2010-11 may see continued revenue declines before a bottom appears. City General Fund Revenue Sources Fiscal Year 2010-11 Taxes Licenses & Permits Fines ~ Forfeits Use of Money & Prop. Charges for Services ^ Other Transfers In PAGE 5 Fire District and Library Funds. The principle revenue source for the Fire District and Library budgets is property tax. As a result of increased delinquencies, overall declining property values that trigger a lowering of assessments and the array of foreclosures, property tax revenues have fallen. Due to the assessment billing and collection cycle, typically property tax changes lag one to two years behind other revenue changes in the City General Fund. Thus, staff expects that even after FY 2010-11, additional property tax declines may occur. Accordingly, any improvement in property tax revenues will lag 12-24 months behind any future improvement in other General Fund revenues. Property tax revenues are more important to the Fire District and the Library as their respective shares of each property tax dollar are greater than what the City General Fund receives. This is due to the City being a low property tax city. The Fire District General Fund Property Tax revenue has declined $438,420 or 3.1% from FY 2009-10 and $1,404,580 from FY 2008-09, while the Library's Property Tax has declined $290,570 or 8.1 % from FY 2009-10 and $315,730 or 8.8% from FY 2008-09. Property Tax revenue for the Fire District's two Community Facilities Districts (CFDs) increased very slightly over FY 2009-10 due to modest CPI increases. Special District Revenues. The City's special districts include various CFD or Mello-Roos districts and 10 different landscape maintenance districts and 10 different lighting districts. Revenues in the City's various special districts continue to fluctuate but overall appear to be flat-lining and in some cases showing small signs of improvement as foreclosed properties are re-sold and their delinquent assessments brought current. Unfortunately, the lighting and landscape districts, most of which were created prior to Proposition 218 in 1996 and thus have no index to adjust for rising costs, are showing significant signs of stress. In FY 2009-10 the City was impacted by an unexpected and significant increase in water rates of approximately 15% from Cucamonga Valley Water District (CVWD). Once again for FY 2010-11 the City is being impacted by another unexpected, and significant, approximate 26% increase in water rates as CVWD eliminates the interruptible- government rate and transitions all non-residential accounts to a tiered water rate structure similar to residential accounts. The City, who is CVWD's biggest water user as a result of all the landscape medians, parkways and parks, had previously relied on this lower cost rate structure to help control the growth in costs in the landscape maintenance districts. With the elimination of the RECOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET MnY 19, 2010 PAGE 6 interruptible-government rate, residents in the LMD's will see a direct impact as this change will hasten the need for Proposition 218 elections in those districts without inflation indexes. During the upcoming 2010-11 fiscal year, it will likely be necessary to bring Landscape Maintenance Districts 1 and 2, among the largest of all the City's landscape maintenance districts, to the voters in those districts for review of a potential Proposition 218 assessment increase. Other districts will follow in future years and those districts whose voters choose to maintain their assessments at their [current] 1996 levels will likely require enhanced fiscal austerity measures including different landscape maintenance levels and potentially even reducing some landscaping as recently occurred in LMD 8. Responding to the Economic Downturn In response to these fiscal challenges, the City has taken numerous actions since FY 2007-08 to help minimize the effects of each year's declining revenue by finding creative ways to cut expenditures, scale back staff to an even greater degree, and implement all available opportunities for cost savings. These actions have included: Implementing strategic cost control measures and eliminating all but the most necessary expenditures for continued organizational functioning Prioritizing various elements of program delivery while maintaining an emphasis on core services Attrition of a wide range of full and part-time positions (currently 59 or 11.5% staff reduction) Emphasis on applying for a wide variety of American Recovery and Reinvestment Act stimulus funds and maximizing available public and private grant funding Shifting eligible staffing to available capital projects and grant funded programs Innovative sharing of personnel resources across departmental lines Delaying replacement purchases where feasible Consolidating various functions in line with reduced staffing, including flattening and restructuring of the organization to help sustain service delivery with less resources Restricting overtime for all but the most essential needs Budget Analysis In FY 2008-09, due to decreasing revenues, there were significant expenditure reductions in each operating budget. These reductions were strategically implemented to preserve the City's number one priority -Public Safety. As positions were shed through attrition, some non-safety departments were affected greater than others, which led to cooperative sharing of personnel resources and in some cases restructuring. As revenues continued to decline in FY 2009-10, deeper budget cuts resulting from continued attrition to departments had to be made. In an on-going effort to stay aligned with continuing revenue decreases, the City amended the FY 2009-10 General Fund budget in March 2010 following amid-year report that identified a projected FY 2009-10 year-end budget shortfall of $3.6 million. The City Manager was authorized to find ways to cut a third of that projected deficit without affecting major programs, leaving the remaining $2.2 million projected budget gap to be addressed through the FY 2010-11 budget process. The 1tECOMMENDED FISCAL YEAR (FY) 2010.11 BUDGET PAGE 7 MAY 19, 2010 following schedule illustrates each department's cost reduction strategies carried forward from the FY 2009-10 reductions and adjusted for the new 2010-11 fiscal year. City of Rancbo Cucamonga Summary of Cost Reduction Strategies by Department and Category Personnel Savings Contract Personnel RestrucWre/ AttritioN Services O & M Total Department Hours Reassianmern Under511 Reduction Reduction FY 2010/11 Administrative Services $ 41,470 $ 48,320 $ 92,310 $ 26,035 $ 208,135 Animal Services 63,128 182 63,310 Bui kung and Safety 25,000 100,580 168,600 8,000 302,180 City Manager (Administration) 1,OOD - 217,940 - 5,900 224,840 Community Devebpme nt - Community Services 40,580 60,000 34,000 26,950 161,530 Engineering 188,080 47,140 116,000 351,220 Planning 144,240 230,010 374,250 Police' 300,000 300,000 Public W orks Services 1.000 60,480 272,269 10,000 343,749 Records Management 1,000 13,325 14,325 Total General Fund $ 109 050 $ 841 220 $ 618 698 $ 684 361 $ 90 210 $ 2,343,539 `Contract credits to City Despite working with all departments to find additional solutions to address declining revenues, there are additional unavoidable fixed cost increases in the amount of $497,000 for FY 2010-11 that also had to be factored into the budget process. These fixed operating costs increases include rising healthcare premiums and utility cost increases, primarily in the area of electricity and water. The ability to provide quality services is dependent upon the availability of staff support for public services. While the City is committed to providing a level of service equivalent to the expenditures outlined in the budget, multiple continuous years of staff downsizing have begun to take a toll. Approximately 75% of the operating budget is comprised of personnel costs. A $3,151,220 level of cuts made between 2008 and today reflect the depth of these personnel reductions. Staffing has been reduced by 59 FTE positions or 11.5% of the work force. This represents 14.89% management and 8.12% general employee reductions. Adding to the strain of reduced staffing is the fact that the City of Rancho Cucamonga, incorporated after Proposition 13, is a "low property tax" City and as such has always operated with a level of staffing that is significantly below the staffing of comparably sized cities. Recommendations After readjusting expenditures to address a continuing revenue decline and unavoidable fixed operating cost increases, aligning all General Fund expenditures with capital fund projects to minimize staffing costs, incorporating all eligible one-time funding as well as [negotiated) labor cost RECOMMENDED FISCAL PEAR (FY) 2010-11 BUDGET MAY 19, 2010 PAGE 8 savings, and identifying the known challenges still outstanding, the following are recommendations for the FY 2010-11 Budget: • Citv General Fund Budget Overall, the FY 2010-11 General Fund Budget is $62,794,080. This includes a $942,400 use of General Fund reserves. The operating budget represents a 5.5% reduction ($3,630,410) from FY 2009-10 and a 9.8% reduction ($6,857,480) from FY 2008-09. The recommended expenditure levels still provides for a continuation of essential public services, including critical public safety services. • Sheriff Contract Costs. Under the existing San Bernardino County labor contracts, sheriff safety personnel are scheduled for wage increases and, if fully implemented, these increases will add an additional $1.5 million in cost to the City's law enforcement contract even as Rancho Cucamonga's revenues continue declining. At the County level, negotiations are currently underway to mitigate these cost increases as such costs also place a tremendous burden on an already difficult County budget. Because any results of these negotiations will not be known until at or after Rancho Cucamonga adopts its budget, we should not speculate on the outcome. It is recommended that the City further address this issue once a final decision is made and the magnitude of the impact, if any, is known. One potential option involves the City utilizing a portion of its law enforcement reserve to strategically mitigate the immediate impact while undertaking long-term cost reduction measures. Fire District Budget. The recommended operating budget for the Fire Department is $24,964,580. This is a $792,260 or 3.1% reduction from the FY 2009-10 Amended Budget and represents a $1,011,050 or 3.9% reduction from FY 2008-09. The proposed budget utilizes a modest $304,770 of reserves. The budget also incorporates fixed operating cost increases and redistributes operating expenses in various areas. The budget preserves all sworn fire positions, with the exception of one Deputy Fire Chief position being left vacant, including accommodating the staffing for the future Hellman Fire Station. The District's capital budget of $594,830 includes the capital funding for the Hellman Fire Station to equip the fire engine and purchase furniture, fixtures, and equipment for the station as well as fund additional construction related costs not covered in the prior fiscal year. The construction of the station was funded in FY 2009-10 in conjunction with the award of the construction contract. As mentioned earlier, primary district funding is from property tax which has begun dropping. Because of declines in property values, foreclosures, and short-sales, property tax assessments are being reduced countywide. Property tax declines typically lag behind other revenue declines, due to the assessment billing and collection cycle, and it is anticipated that the worst of these declines may not appear until FY 2011-12 because commercial/industrial assessment decreases typically follow the residential assessment decreases enacted for the upcoming year. Having such knowledge requires the District operations to remain fiscally conservative and preserve any fiscal flexibility it now has to help mitigate future erosion of property tax revenue. Another critical fixed operational cost issue that must be noted is an anticipated PERS cost increase in FY 2011-12 as PERS adjusts employer contribution rates to begin recouping FISCAL YEAR (FY) 2010-11 BUDGET MAY 19, 2010 PAGE 9 losses from investments during the 2007-08 and 2008-09 fiscal years. These increases were initially postponed several years to take advantage of the stock market rebound and minimize as much as possible the impact on employers. The magnitude of these increases will depend largely on PERS investment performance up through the end of FY 2009-10. PERS has also announced that its actuarial basis for employee longevity must also change to reflect a trend toward longer life spans. The current actuarial assumptions PERS uses are decades old and have not been updated until recently. In any case, because cost increases in public safety rates will be the most significant, it is recommended that a Fire District PERS reserve be started in FY 2010-11 to help mitigate PERS increases that will begin in FY 2011-12. Having this reserve will help to soften the initial impact of these increases, lessening the pressure on the operating budget as its property tax revenues continue to decline. Library Budget. The recommended FY 2010-11 Library budget is $4,048,750, which represents a reduction of $191,2fi0 (or 4.5%) from 2009-10 and $440,660 (or 9.8%) from FY 2008-09. Like the Fire District, Library revenues are primarily property tax related. Keeping a number of positions vacant and implementing successful grant programs have helped shore-up services. The Library has also reduced its book replacement budget, but otherwise has been able to keep its hours fully intact at this time. City Operating Budget City General Fund, Library Fund, and Fire District Funds FY 2010-11 Admin. Services 11.3°~ Animal Care 8 Services 2.7% Building 8 Safety Governance 3'2% Fire 2.0% Community Development 27.2% 0.1 -- Community Services Public Safety 4.8% 57.2% ~ Engineering Services • Capital Improvement Program (CIP). The CIP contains priorities for improvements to the City's infrastructure over a 5-10 year period of time. It is annually reviewed and updated and its implementation is dependent upon the availability of capital and special funds. Since these special funds are legally restricted, they must remain separate from and cannot be 2.1 Public Works Services POIICe 10.1 30.0°,6 Planning 2.1 °h Library 4.4°k RECOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET MAY 19, 2010 PAGE 10 utilized for general operating costs. While these special funds can be eroded by economic conditions, the fiscal impacts are different from those in the operating funds. Capital projects often span many years, as they move from design and environmental review to plan check and ultimately construction. Some of the capital improvements that are planned to begin or continue in the upcoming fiscal year include: the widening and enhancement of Foothill Boulevard between Grove and Vineyard, the completion of the southern portion of the Hellman Avenue storm drain, and the expansion of the Base Line and I-15 Freeway off ramp. State Budget Challenge. The State's continuing budget troubles once again threaten the security of local agencies. In the past, the State took away local revenues for its own use, leaving frustrated local agencies to address their own operating budgets on two fronts: local impacts and State impacts. Most recently, the State has turned its attention to gas tax funds and redevelopment funds. In the past, the State has taken property tax and sales tax to help balance its budget. An initiative effort is underway for the November 2010 ballot to block any future State take-sways of local revenue. Because the State procrastinates on finding its own budget solutions and takes so long to adopt a budget, there is no way for local agencies to forecast future state decision impacts. As a result, the FY 2010-11 Budget presented herein can only note that there may be other State decisions yet to occur that could negatively affect the City's budget and which will have to be addressed as the happen. Redevelopment Agency. The State's take-away of more than $32 million for FY 2009-10 and more than $6 million in FY 2010-11 will have a significant impact on the Rancho Cucamonga Redevelopment Agency's Redevelopment Plan. The magnitude of these losses means the indefinite postponement of the long-awaited Central Park Phase II, which includes Fire Station 178, as well as the Arrow/I-15 interchange infrastructure project. In the interim, the Agency will continue to work on programs which attract and retain businesses and result in job creation. Continuation of funding for the Small Business Assistance Center remains a priority, as well as exploring public and private partnerships to present job fairs. Working with local and county organizations to assist homeowners as they face foreclosure issues is also part of the work program for the upcoming fiscal year. Finally, the Agency will also fund a number of significant infrastructure projects identified in the Capital Improvement Program which stimulate the local economy and provide for local employment opportunities. Recommended Budgets The FY 2010-11 Budget is a product of continuing departmental operating budget reductions and prudent use of reserves. The following is a summation of the various proposed City Budgets: City General Fund $ 62,794,080 Library Services $ 4,048,750 Fire Protection District $ 25,559,410 Special Funds $ 58,057,320 Capital Improvement Program (CIP) $ 18,381,500 Redevelopment Agency $179,362,530 1tECOMMENDED FISCAL YEAR (FY) 2010-11 BUDGET PAGE 11 MAY 19, 2010 Conclusion The proposed FY 2010-11 Budget being presented reflects the current fiscal realities of the Great Recession and also the priorities and goals for the future of the City Council, including: • public safety • funding capital improvements to benefit the City and create jobs • preserving core public services to the community After three years of cost cutting, the proposed FY 2010-11 Budget takes Rancho Cucamonga to the verge of having to implement service level and workforce reduction if revenue loss does not abate by the end of calendar year 2010. Many other cities have already gone through these painful steps in the past two years. As a result of the City Council's strong fiscally conservative policies; the City of Rancho Cucamonga has not. Yet for all things there comes a time, and the challenges confronting us in the near future may place Rancho Cucamonga in a similar position as the City cannot continue one time revenues and utilize reserves indefinitely. The key determinant factors will be the following: 1) Revenue performance for the remainder of calendar year 2010; 2) The outcome of County/Labor law enforcement negotiations; and 3) Any negative State budget action(s) that further diverts local revenue. Fiscal indicators available to the City for budget purposes lag by many months and actual consumer habits and new indicators will not be available until later in the calendar year. While there have been hopeful signs of increased economic activity recently reported in the national business media, what this portends for our local area is yet to be seen. New indicators later in the year will be the best resources to help guide the next fiscal steps beyond 2010. Is there anything positive? Yes! The current economic conditions have presented great challenges, but we are proud of the innovation and creativity of staff to adapt and cope with shrinking resources. They have responded to the call to reduce costs while preserving core services. These reductions have required department review of service delivery, finding ways to improve efficiency and adapt our services to fit diminished resources. The City has also worked in partnership with its employees and suppliers to achieve greater cost savings. Yet, further challenges lie ahead. Though working through budgets during this economic down turn is daunting and gloomy, we must embrace some of the positives to help balance our perspectives for the future. • The City has been given a AA Credit Rating. • The City still maintains a $14,698,958 or 22.2% reserve (goal is $33,212,250 or 50%). • Despite the national recession, the budget still preserves basic City services and continues its priority on public safety. • The City and Fire District have no unfunded OPEB liability. • The City's PERS funding is at 94%. • The downsizing, restructuring and cross utilization of staff resources has enabled the organization to adjust its operation to the future new reality of much more limited resources. RECOMMENDED FISCAL YEAR (FIB 2010-11 BUDGET MAY 19, 2010 PAGE 12 The City still can invest its capital funds in the City's needed infrastructure and that also helps to position the City for future economic development. Another positive viewpoint from a service and productivity standpoint is how City staff continues working diligently to secure funding that will sustain and support the City Council's goals and meet the needs of the community. A few of the many examples of how staff is working to do more with less include: • A successful application fora Robert Woods Johnson grant to develop policies and programs that will improve the lifestyle and health of children in Rancho Cucamonga through the expansion of the City's Healthy RC programs. A successful grant application by the Library for the evolutionary Play and Learn (PAL) Islands, including the potential for future rental income from other agencies using the PAL's. The proposed FY 2010-11 Budget required difficult decisions and collaborative efforts throughout the organization. It also included sacrifices to help the City meet its service obligations yet still retain fiscal responsibility. The budget preserves basic services and continues its priority on public safety. While the FY 2010-11 Budget reflects significantly reduced revenues, the City's dedicated employees remain committed to providing the community with the best services possible utilizing the resources available during these difficult times. C~ O V ~~., O r--~ N b.A ''~ O O r--a O O N .-~ c~3 U . ,,._, O .~ N ~/1 ~--~ bA O .-~ O N M N ti 4~ CV ~~ ti ~~ o~ 0 ~ ~ ~ ~ ~ '~ ~ '.~ ~ ~ ~ o '~, ~ ~ ~ C~ ~ ~ ~ .~ .~ N Ov ~ ~ ~ ~ ~ O ~, ~ . ° N ~ ~° ~ ~ ~ ~ ~ ~~ O ~ v ~ ~ ~ o W ~ ~ ~ ~ ~ ~ ~ N ~ v ~ ~ o ~ ° . r.., ~ ~ ~ ~ ~ ~ ~ ~ O ~O ~ N ~ ~ ~ ~ '~ • r.,, ~-' '"~ i-' R3 '-' by O ~ ~ N ~ N ,~ U c~ ~ ~ •~ .~ ObA ~ ~ ~ ~ .~ ' bA ~ ~ N ~ ~ ~ O ~ ~ ~ ~ Q ~ ~ v I I ''~ ~i .~ ~ 4~ ~' O O ~ ~' N O ~ `~ U ~ ~ W r--~ ~ r...~ . r+ ~ ~ ~ C~ bA ~ V1 ~' ~~ ~ ~ ~' bA . r..~ C~ N . ,__, ,sue N v~ a~ ~ ~ •~ ~' ~ ~ ~ ~ '~ U N ~ .~ ~ O ~ ~ N O ~ ,~ ~ ~ ~ . ~.~, $„~ • r-, v~ ~ N ~ ~ ~ ~ .~ ~ ~ ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ N U Z ti ~ i i i ~ ~ .~ . r.., 0 N cd W • C~ ~ ~~ ~~ 0 ~ W a? ~ CC3 l ~~""' C~ ~~ C/1 V N ~--, ~' ~ .~ ~ ~ .~ O •~ .O ~ ~ b.A ~ ~ O ~ O ~ ~ ~ O O ~ U O ~ ~ ~ ~ bA ~ .~ ~ ~ ~ ~ ~ N bA ~~-, ~ ~ ~ F"~ ~ ~^ • .--, N .~ O O c~ U O .~ ~ ~ N ~ ~ ~ ~ ~ ~ ~ O ~ '~ • U N U ~ ~ ~ '~ ~ N ~ ~ ~ '~ ~ U ''.., U, ~ O O ~_ ~ U ~ O ~ ~ ~ ~, ~ O O ~ ~ ,S' ~ ~ .-~ O ~ ' r' ''"' •.~ ~--~ ~. ~, ~ '~ ~ ~ ~ N ~ ~ N C~ ~ .~ ~ ~~ W ,~ C~ •~ r---I ~ U O v~ O ~ • r-, ,-~ . ~ ~ ~ r--' U cam, ~ ~ O ~ ,_.., ~ ~ ~ O O U ~ ~ U -' '~ ' ~ '~ U c~ ~ ~ ~ ~ ~~-' ~ ~ ~ •~ ~ ~ O ~ U ,~ O ~ ~ ~ ~ ~~ ~ •~ ~ O ~ ~ ~ ~ ~ ~ ~, ~ ap a~ • ~' ~ ) o „ ~, ~' ~ a~ '~ '~ ~ o ~ ~ o M .. ~ ~ ~ U -~ ~ '~ ° .~ ,~ ~ ~ ~ O N v, ~ ~ o ~ ~ '~ U ,~ ~ U ~--~ '~ ~ j ~ ~ bA bA .~ ~~ ~ ~.~ ~ ~ ~ ~ ~ ~ O ~~' O '~ ~ ~ ~ U r'"'~ ~ U ~ N O N `~ ~ o c~ ~ ~ ; a~ a~ ~ ~ o ~ ~~ ~ ~ ~ o0 N U ~ (~+ -~-~ U ~ N ~,~ I I I W ~~ • • C 'p •L ~ ~ LL. fl. ~ O m U d ~ ~ ~ _ ~ U M~ W - Yv...~.. e~. .~ ~~ 5 b ~ _~~ r ,~x~..~_ :~=x t . ~~ ~ , ~.~g~.,~.x F .fk~ .'L.F YI ~: '~~ y?,.~ J F ~~ ~ 4 ~~ [ $ ; y. t ~; liTiy #:',+F~nP3 ~~i;Y~i , 5t ~ ,~. a -sac ' ?='* WrxT ' '~ `CIF _ k b b i~~ "S jry F 1 ~ j ( Fs i C ~` ~ 1 f 1 .` 1 > O O O O O O O O O O O O O O O O O O N O CO f~ I~ CO O O O O O O O O O O O O O ~ O O ~~ O O O O O O N CO O O O O O O O O O O O O O oO O ~ H? Ef? O O N LL O O O N /o K/ O O N LL N ~L ~ Q Q. U O ~, ~_ ~ 3 ,, ~ '.. ~ L ,, .ti I p~ 1 k",'3 . ~~3 a ~~ ~ ~ } I { 1~~yk,~tk~C 'Yi1, Y' T_:.?:_ p Sy m '.i 6 _y~ yt xH A~ *:-aR ~ x YS q s., ,~ _. ~ ~, ,. 4 Y.. p t k 4. ~~ T ~~ * r Q V J O V J O V I O ' ^ W ^_ ~ J ^ V J ^_ Y J ~ ' ^ ~J LL ~~ D7 '' ^^ D7 `` ~~ D7 '' ^ D7 O O N 11~11 ~.L /''O~~ ~// O rn 0 O J ~// •~ O U c~ d a1 M~ W r <,X a w~r gr~r k t 4 , ~50 ~ 3 1 . .$ ~{ bAf k'a; M' 4 ~ i. Y • C .",.~T,! ~ Rs~. xi i°. .T -st :w.~ r, .. ~St i i '~~ A . .q Y ~ ~.~ ~~ Y . ~,'3 ~ v ~ V ~ r1. 3 vim' '. { t ' '~f y 3 x"i'E1 ~ x. 2=• . N ~ O O O O O O O O O O O O O O O O O O O O Cfl~~M ~d'~~ Ef? f!} H} ER O O O O O N ffl O O O O O Ef? O O O O O O O O O O O O O /O\ /O~~y~ ~ ~// W ~ M M 6g K? Et} Q O N O O `O} O_~ K/ O ~ ~ ~ O M~ ~ F-~-I ~ ~ ~~ bA . ~ ~ rd ~ ~ ~ ~ ~ ~ O ~ ~~ O ~ ~ O 4~ ~ c~ O N 4--+ O 0 r--> N 0 . ~, O d' .~ 0 U '~ .-~ .~ a i '~ N O c~ v~ ~ o ~ ~ '.~ ~ ~ ~ ~ ~ . ~, p O ~ ~ ~ ~ ~ b ~ ~O ~ ~ ~ ~ U ~ ~ •~ `r' ~ ~ ^ V U ~ o ~ ~ a~ ~ ~ ~ ~ ~~ ~ ~ ~ .~ ~ U ~ ~ ~~ ~ ~ ~ O ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U N ~ ~ •~ ~ b~A O '~ ~ ~ N N ~ ~ .O '~ ~ N U ~. rd o ° ~ 3 ~ ~ ~ ~ ~ V1 .~ U 4~ Q a~ N V N O ~ .~ N 4-~ ~ O ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ o -d `ti c~ o ~ ~ ^' M bA ~ '~ N ~ ~ ~ ~ 'b N ~ ~ ~ ~' ~ >, ~ ~ ~ ~ O ~ Q~ N `..i ~'" N ~' ~ . ,__, ~ ~, U~'~ C/1 ~- .~ ...., U 0 U . ,_., N ,-~ N fi+ O A-~ O N Q N U .~ \° 0 ~~ ~ O O ~ ~, O N ~ O ~ ~,~ .~ ~ 3 ~~ o~ N ~ ~ ~O >C w b ~ ~ ~ U ~O ~ ~~ ~ ~O U N O ~ ~w .~ ~ ~ ~ ~~ ~ ~ N ~3 I ~ o R QI C C0 G lC V U O t V C N Y-. O U Vl d L 7 O N d 3 C d d d Y C .N d N lC d U d 0 d Y l0 C~ G U f/1 Vl N 41 N f/1 f /I N N N N N N N N N N N N N N ~ 'O -O "O 'O 'O 'O ~ ~ Y Y Y o Y Y o ~ o o ~ _ col - rn _ .- ~ N i I I I i x _N T t N d O d ~,: y N ~ ~w rn ~ o ~' O L N V } LL ~ a 0 Q J O p ~ ~ O ~ N J } C LL ~ ~ C N ~ p_ LL J ~ ~ Q I co 0 0 0 N } d a 0 Q N N X N T U c m n U O c N N R H N N C N U_ N N N C N m 1 a~ w c a~ x ~ m a N ~ N fU N 1T~ 0 1 ~ ~ ~ ~ ~ ~ w ~ ~ ~' O .~ ~ ~ r--~ N ~ ~~ N F-~ ~ ~ ~ ~ O _ ~ ~ U ~ N ~~ ~ •~ ~ Q ~ N ~ .~ .~ U .~ a 0 a~ r--~ 0 a 0 ~ ~ o ~ ~ U ~ '~ N N ~ ~ ~ ~ c~ ~ a~ ~ ~ • ~ `~ ~C ~ U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~, O ~ ~ o ~ ~ ,~ ~ ~ ~+ .~ ~ ~ o ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ U ~ ~ ~ ~ ~ ~ U ~ a ~ ~~ o i i i ~ ~ N N N U .~ .~ H C~ . r..{ N O O '~ .--~ U .~ .~ '~ .~ U ~/1 O r--~ ., -~ U . r.., .~ O O O Q .~ 't~ U .~ c~ U Q .~ . r.., '~ b.1J .~ b!J . r.,., r--, r--~ N N . ,__, '~ O c~ .~ .'.., Q ,-~ .~ 4J 4J .~ O N c~ r--~ N O C~ U O .~ O bfJ .~ .~ O a~ .~ .^~ H .~ 4J ~ ~ ~ .~ ~"' •'--+ ~~ ~ O ~ o `~ a ~ O ;~~ ~ ~ 0 0 ~ ~ ~ ~ ~~ ~ . ,--, ~ o U ~ Q ~ ~ ~ ~ ~ Q .~ --~ N • O U a~ 0 .~ . ,.., O .~ . ,__, Q ~--> 0 .~ a~ ~ ~ c~ ~ •~ ~ ~ 4~ ~~., ~~ ~ '~,~ ~ ~ I Q ~° °~ o ~~ o ~ ~ ~ '~ ~ ~ ~ .--+ O N w O .~ 0 ~° 0 .~ .~ .~ '~ 00 ~ r--+ ~ N ~ O ~ . ,_., , ~ . ,__, O ~y O '~ p..~ c~ b ~ N N '~ 'd ~ ,. ~ ~ C ~ v "d T-+ . ,~ •~ Q) U . ~'~"' bA ~ ~ bA •'" O ~ ~ ~ O ~ ~ ~ ~ ~ '~ ~ ~ ~ ~ • O O N ~ ~ 00 ~ ~ ~ ~ ~ ~ o O ~ ~ ~ ~ ~ o ~ W ~ O ;~ N ~ ~ ~ ~ ~ •~ ~ ~ Gam." N .~-~ .--~ ~ ~ ~ ~ OU ~ ~ . O O '~ ~ O •N O O ~ bA ~ ~ ~ ~ ~ ' b A ~ ~., ~ U ~ ~ ~ . 1i ~ ~ " ~ ~ N ~ t~ ~' 4--+ O ~ ~ ~ ~" U ~ U •~ ~ ~ ~ .~ y .bp ~ • O .~ ~ ~ ' am' N ~ ~ ~ bA `^ ~ O U ~ •y ~ .. •~ ~ ~ ~ N .--. •~ • ~ O O •~ ~ ~ ~ ~ ~ ~ ~ ~ ~+ bA O ~ ../ ~ ~ ~ ~ ~ o ~ ~. ~ U ~ ~ ~ i i i i i i O U ~, O i. N '"~-+ .~ 3 c~ ~ ~ ~ U ~ O O M ~' r--~ 6g ~ `~ O N ~ O ~ w ~ .~ ~ ~ ~ O -- ,~ •' ~ cc3 ~..~ C~ ~ ~ b 4 ~ ~ v '~ ~ '- ~ ~ ~ ~ ~ `~ ~ ~ ~ ~ ~ '~ ~ ~ ~ O ~ ~ ~ ~ ~ O O M '~ O ~ ~ ~ F-~--i ~., p ~' ~ , U I ~-' o ~ ~ O w N ~ bA ~ ~ ~ ~ .~ N ~' ~ ~ ' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I I 0 N .~ b~A O O U w '~ c~ O .'.., ~--> O O N w ,s' O U U ,-~ O O N ,~ ',~'~"~ c~ n O O) N O N U U c ~° m C a~ co r • r..~ m c ~ ~ D ~ T ~ r~ U U °~ O N L U ~ C ~ R a~ c .~ O O O ~ ~ . ~ U~ ^~ ^ ~L~/ N o U o N E E m F'''1 7 ~n o 0 0 0 0 0 o rn in m ~ M ~ N V M N l0 O V N M ~ r M ~ 07 ~ N N O !~ M t0 (0 O W M N V ~ V' O M d' M p p O (D O N CO ~ f~ O ~ ~ V F N N M N ~- M M M M M } N LL ~ ~ C to O O O O N O ~ ~~ O O O) O O M N ~ ~ c0 00 LO (O O M O O ~ N N ~ c- d) ~ fA ~ C ~ W O O O ~ O (O U~ ~ M (O ' O O N O M O N 0 ~ ~ N CO Uc~~ ~ ~ 0 0 0 0 0 0 ~ ~ ~ rn ~ o ~ ~ O M I~ r O O CO 'C ~ CO ~ V M CO ~ Y-, ~ N N <D Q ~i N O) C c (n ~~ M ~ O O N O N .~. C ' _ N a y ~ O M W ~ O V C y ~ ~ M W C in N O ~ ~ y3 ffl a d ~~ a °o o~ 0 0 ~~ ui ~ o ~ m 0 0 V N V O _ r N a ~ e» c 0 .~ ~ w m C ~ E N U N N a ~ '~ E ~ E N N 'O ~ ~ O (0 ¢ N (n ~ w U ~ (n N C ~ 0 ~ ~ ~ N ~_ ~ 0 ~ ~ C C C y N C (6 C ~ E C .C O U ~ ~ . E :O C U O (0 'EO C ~7 "T' O C~ O O ~7 N ¢¢ m U U w a a a a F U O N V d V V A C O U x ~--~ v~ c~ O ~ ~ ~' .~ ~~ O ~ U -~ w r--> ~, ~ ~ ~ j ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ N ~ O O '~ '~ `~ N O '~ O ~ ~ ~''~ ~ ~ ~ ~ ~ ~ O ~~-+ ~ ~ o ~ ~ ~ U ~ O ^, W Cc3 ~ . Q'' ~ O ~ ~ c~ ~ ~ r--~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I I J--~ h M~ h"''y .~ ?--~-I O C~ . O C~ l--~ N r~ h . ~.., N O O d~ b~4 bA "~ .-, .~ O N O ~, 0 O ~--i M 69 O ..., U '~ \° 0 ao O 6F} cd c~ ~ ~ ~ O ~ ~ ~ O O O 00 O N U . ,_., . ,V_, ,-~ ,--~ .~ 4-r O . ,.., CC3 ...., O C~ i--i b O N . ,U_, • .V-i .-~ U ~--~ . ,._, bA '~ .~ O ~--~ ~, ..., N C~/1 . ,__, w a~ cd a~ ~, U .~ O ... .--~ .-~ ..-+ 6F3 cd .~ O a O l~ ~.., o l~ o oA ., ~., ~ ~ d' a~ o~ ~ O Q~ ^_ ~ ~ O ~ .-. ~ ~ O ~ U ~ 3-, O ~ ~ ~ ~ \ 3 h~'~I \J U U v~ ~ '~ y O ~ ~ ~ ~ o ~'~ . ~ ~ r--1 ~i N O bA N w.~;~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ a O ~ a., U r..~ a~ ,~ rn U bAv~ ~~~ ~ ~ ~' ~ ~~ ~-; U ~ ~~ N ~ U c~ ~ a, W N ~ ~ ~i N ~ ~ +ri • ~ ~ I I I C!~ ~~ rv r, O ~ ~ ~ ~ o0 G4 ~' d' ~' .~ ~ ~ ~ ~~ O ~ ~ bA ~ '~ O ~ r--~ ~ ~ ~ ~ ~ ~ ~ Q ~ N ~ ~ w ~ ~ ~ ~ ~ ~ ~ -~ O . V .~' .O ~ ~ o ~ ~ ~ ~ ~ ~ 0 1,,., U 0 O dom.'. O ~ O ~ ~ O ~ N ~ N ~ ~ ~ b~} ~ O\p ~ c~ ~ c~ ~ ~ ~ ~~N ~ ~ o w o ¢, ~ ~ a w ~ ~ ~ ~ r--~ U . ,__, _~ N .-~ U '_' ~--~ ~ ~ ~ ~ N O O ~ ~ ~ ~ ~ '~ ~ N N .~ ''~ N N ~ ~ ~ ~ ~ ~ ~ ~ ~ o 0 0 ~ ~ ao ~ ~ o -~ ~ c N A o a -M 3.~0 }.~ ~ b ~ ~ ~ ~ ~ ~ ~ ~ c ~ N a N ...~ J--~ rn ~ o ~ ~ ~ ~ ~U-I .~ ~ ~ -r--~ ~ ~ ~ o a ~ ~ ~ ~ ~~ ~ ~ a~ ~ `~ w ~ ~ ~o .. ~ ° ~ ~ >N 4~ ~ ~ ~ ~ ~ o ~ ~ ~ u e ~ ^' C a ~ a M ~ o ~, ~ ... .-r ~ ~ N ~ ~ ~ ~ ~ .'-, v~ '~ cN ~ ~ ~ ~ ~ .--i c~ ~ ~ o a~ ~ o ~ ~ ~ ~ ~ b.Q ~ ~o ~? o ~ ~ ~ ~ ~ ~ o~' ~~~~~~~ ~ ~ ~ a~ ~ ~ ~ -d o ~ ~ ~ ~ ~ ~ ~ ;~ o ~ .~ ~ ~ ~ .~ m ~ ~ '~ ~ ° ~ ~~ o ~~ ~ ~ O ~ ~ U ~ ~ ~ ~ ~ ~ O ~ ~ ~ ~ ~ ~ ~ ~d ~ o ~,, ~ ~ ~~-, ~ ~ ~ ~ ~ ~ W ~ I I I ~, F--~ M~ F-~-I O bA N ~--i ,-~ ,~ bA '~ C~ ~--~ • ~ ~ bA ~ O ~ ~ ~ O N ~ O ~ ~ bA ~ N `~ x bA N ~ ~ ~ ~ -~ ~ U ~ ~ ~ ,~ . ~, .--a ~ ~ cc3 ~ ~ ~ ~ O n ~ ~ ~ '~' ~ U ~ ~ c~ ~ ~ ~ ~ O ,--~ O N ~ ~ ~ O Z ~ O ~ ~ ~ ~ O ~ ~ '~ ~ ~ ~ ~ O 4-a ~ ~ ~ ~ .~ r--> ~ ~ .--, c~ O .-~ 4-a '+ O ~ c~ ~ c~ ~ O 4J ~ ~ ~ r--+ ~ ~ ~ O ~+ N O ~ ~ O O ~ ~ O ~ ~ .-~ ~ ~ ~ ~ ^v ~~ V1 F--~ N M~ F-~-I U bA r--> N O '~ N ~ N . ~ a ,--, ~ N O ~ ~ ~ ~ . , a ~ O . r.,, O _ ~ ~ _ U ~ ~ ~ ~ U N `O N ~ s-, ~ ~ ~ ~ N O ~ ~ ~ O ~, bA ~ O N ~ N ~ .~ O ~ w $'' ~ N N N O ~ ~ ~ ~ ' '.~ ~ ~ O U ~ -, ~' c~3 O ~., ~ ~ ' ,~ ~ ~ . ~ O ~ ~ ~ ~ o ~ ~ 0 r--a ~ ~' ~ ~ 0 \ ~ ~ • Q; U U U N N O ~ ~ _ V1 (~ N ~ ~ '~ O I I I . 0 0 0 00 ~ r--, O [~ ~ ~ 00 01 ~ ~ ~ ~ ~ ~ O ~ ~ ~ ~ N '~ ~ ~ ~ ~ 4J r--~ ~i • ~ 4J ~ ~ ''""' ~ ~ ~ Q O ~' • ~ o . ,__, N ~ ~ v ~ ~ ~ ~ ~ o ~ ~ a U ~ w 0 0 0 N O M M ~ ~ ~ ~-+ N ~ oo `p O M M 00 00 ~ ~ r--, ~ ~ ~ ~ ~-+ U ~; N ~ o ~ ~ ~ ~ ~ ~ O ~ ~ a~ ~ ~ ~ ~ ~ ~ .~ O N ,~ r--~ '~ .--, ,-~ 0 0 N 0 0 ''~ O .~ U ,~ 0 . ,__, . r--, ,-~ c~3 U 4--~ O ,~ r--~ O bA '~ .? . r.., .O 0 c~ .. b~,A . ,__, '~ .~ . ,__, ~Ol ~./ . r..., O N O ~ ~ o .~ . ^, ~ ~ U 4~ U ~ ~ U . C~ ,..i ~ ~ ~ a w U O N .~ .~ 0 bA . ,._, a I .,~ . r..~ O U r--> b!J ''~ '~ O ~ ~ ~ O ~ ~ ~/ ~ . ,._, O ~ ~ ~ ~ o U o ~i v~ ~~ V ~ .~ 4--+ N r--> O 0 '~ ~ O ~ O N •~ ~ U '~ N ~ CC3 U 4-a ~,.., ~ o O ~, s-, ~ b '~ ~ • .--~ c~ ~ O ~ ;~ ~ o ~ `o o ~, U ~ U ~ ~ ~ ~ ~ .--w C~ `n N O N .~ ~ ~ N .Q ~ ~ ~ ~ ~ ~ ~ ~ ~ ~' . ,~ ~ U ~ ~i ° °~' o ~ ~ ~ ~ O ~ ~ ~ ~ ~ ~ U ~ ~~ O .~ ~ ~ ~ ~ ~ ~ ~ ~ ~ °; c~ O V1 ~ ~ ~ ~ O '~ ~ ~ O ~ U i i N ~, O .O _~ U 0 V N .~ ~--+ .'..~ .~ N ~ U . ,--~ ~ ~ N ~ o ~ a N ~ O O b A N 'n ~ ~ ~ ~ $'' ~ O ~ ~ ~ ~ _ ~ ~ ~ ~ 01 y" ~ o ~ ~ ~ , ^' O o U ~ ~ ~ ~ ~ ~ ° o ' ~ o ~ ~ ,~ • ,.., ~ ~ ~ ~ ~ U ~ V~ 3~ U ~ i~r .--i ~ O ~ ~ ~ '~ .~ ~ ~ ~ Q ~ ~ ~ N O U ~ ~ N N • ~--~ ~--' ~ ~ N N ~ 'd a . ,._, ,~ ~ M ~ ~ ~ ~ U U r ~ ~ U :•~ U .- U . ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ..-" O ~' ~ ~ O '~ ~ o '~ '-" ~ . r, ~ O ~ ~ O •~ O U c~ ~~ ~ ~ bA N O ~ .~ . r..~ ~ ~ ~ U ~ N U ~, ~ ~~ ,~ ~ N U ~ ~ O b ~-' ~ ~ h I N ~ ~ ~~ ~ ~-' O . ,.., ~ ~ •~ U O ~ ~ U ~ O ~ 'd u~ ~ '-" U O ~ ~ ~, ~ O ~'~ c~ ~ ~ ~ 3 ...., ~ ~ ~ ~ ~ ~ ~ ..~ ~ a~ ~ ~ ~ U U ~ ~ ~ ~ . ,_., c~ O O ~ O ~ ~ .~ cd ~ ~ ,..~ ,__, N o ~ h ~ I N ~--~ ~--~ . '.., O .~ C~ N ~ O ~ N ~ O N O ~ U N '~ ~ ~ r--' '~ ~, ~+ .~ ~ ~ U ~ H U . ,._, . r.., .'.., 0 ,~ .~ r~ O bU . ,__, '~ ,-~ . ,..., O i~-i N ~ ~ N ~ .~ ,._, r--' N ~' ~ ,~ ~ ~ .~ ~ '-d ~ ~ 0 ~ ~ ~• C/~ ~--~ 0 V1 .~ ~--~ C/~ a