Memo 037-2012 Out of OfficeOM M nw
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OFFICE OF THE CITY MANAGER ice {' (;[ (; �; �i MEMORANDUM
MEMO // 037 -2012
TO: Ed Tobin, Commissioner
FROM: Kathie G. Brooks, Interim City Manager
DATE: November 29, 2012
SUBJECT: FY 2011/12 Police Budget
- - - -- -- - - - - -The- following- is in- response --to your - inquiries- contained in an -email - correspondence -to -me
dated November 18, 2012, concerning the Police Department Vacancy Report that was
provided to you in a memorandum dated November 15, 2012.
Question 1: Can you tell me what the year -end surplus was?
The total Police Department FY 2011/12 expenditures at year -end were estimated to be
$2,312,699 below budget.
The overall savings included a one -time pension credit of $1,153,215 (as was mentioned
LTC #213 -2012 dated August 15, 2012, which was based on the FY 2011/12 Annual
Required Contribution (ARC) to the City's pension plans). Pursuant to a rule from the State
Division of Retirement, which was subsequently rescinded, this amount was less than what
was budgeted and therefore resulted in a one -time pension credit). The net effect (without
the Pension credit) in the Police Department' was a savings of $1,159,484.
Question 2: Can you please tell me what happened to the $801,699 we saved as a
result of the unfilled positions?
The Police Department's $2.3 million preliminary FY 2011/12 year -end savings was part of
the $2.8 million in General Fund preliminary savings. Together with revenues in excess of
budget, this resulted in preliminary estimated year -end revenues in excess of expenditures
of $5.16 million. During the Commission's November 14, 2012, meeting, pursuant to
resolution 2012- 20873, this $5.16 million surplus was designated as follows:
• Reserve — set aside for future building expenditures (pursuant to state law which
$535,000
requires that building revenues in excess of building expenditures be set aside for
enforcement of the Florida Building Code)
• Reserve — encumbrances (required to pay for goods and services contracted in FY
440,000
2011/12 but not yet expended)
• Reserve — set aside for projects budgeted in FY 2011/12 but not yet expended or
530,000
contracted
• Reserve — set aside for severance pay for former City Manager
420,000
• Reserve — set aside to address budget shortfalls in FY 2013/14
2,700,000
• Contingency left in department budgets as FY 2011/12 expenditures are still being
535,000
accrued through the year -end close -out process. The Administrator will provide an
update once the closeout is complete
$5,160,000
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community.
Question 3: Can you tell me who verified this data? You may recall Chief Martinez
came to one of the budget meetings to declare he would come in with a budget
savings for the year. The Department should have had an $800,000 surplus.
The information provided to you in the November 15, 2012 memorandum was compiled and
analyzed by staff from Human Resources, Police, OBPI as well as my office to ensure
accuracy. The financial data provide in questions 1 and 2 above are based on the City's
Enterprise system, which tracks revenues and expenditures.
Question 4: Knowing that if the exact right question is not asked, critical data is
sometimes not disclosed. Who from Administration can assure us this data is
complete, accurate and answers at a minimum the two fundamental concerns:
1). That manpower on the street is accurately reported by the categorization of filled
and unfilled:
Please note that the information transmitted to you on November 18, 2012, provided a
snapshot of the staffing levels and vacancies in the Police Department based on records in
the City's financial system as well as review of records in Human Resources for the past 12
months as well as, the savings associated with any vacant positions during this period of
time. Based upon your request, the analysis provided to you did not examine the operational
assignments associated with these filled positions in the Police Department.
2). That the report accurately reports the total savings we enjoyed by not filling spots:
Based on the City's financials through September 30, 2012, the Police Department had a
$1,360,235 million savings to its "salaries and wages" budget by not filling vacant positions;
however, this savings was offset by overspending its "overtime" budget by $944,225 (a net
savings of $416,010). Note: due to the one -time pension savings explained in #2 above,
the total savings for the Police Department's Personnel Services budget was $1,825,654
with $1,153,215 from a one -time pension contribution expense reduction.
Question 5: Do we intend to implement any new strategies for keeping up with how
this department spends the community's money?
OBPI analyzes all department budgets on a quarterly basis. OBPI meets with the Police
Department on a more frequent basis to review actual expenditures versus budget.
Should you require any additional information, please feel free to contact me.
KGB /pp
Attachments
C: Mayor and City Commission
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community.