LTC 189-2011 Explanation For Any Increases In FY 11/12 General FundLTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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Further , as explained in the proposed operating millage agenda item presented to the
Commission on July, 13, 2011, a sign ificant component of the increase for all departments is
due to previously bargained salary adjustments for employees, including a 3 percent Cost of
Living Adjustment (COLA) for bargaining employees as of April, 2012; the impact of step
increases for emplo yees in the Fraternal Order of Police (FOP) and International Association
of Fire Fighters (IAFF) bargaining units; a maximum of 2 percent performance - based merit
and a maximum of 2 percent performance - based merit increase for employees in the
American Federation of State, County and Municipal Employees bargaining unit (AFSCME)
as of May, 2012. The CSL budget also assumes the 3 percent COLA and 2 percent
performance - ba sed merit increase has been included for unclassified and other employees
consistent with past practice of treating all employees equally.
Health insurance costs also a re projected to increase across all department, but most
particula rly Police and Fire, based on an estimated 10 percent increase over the current
Fiscal Year across all departments , as well as the expiration of the FOP and IAFF additional
5 percent contribution to City health insurance costs . This additional 5 percent c ontribution
by FOP and IAFF members was for an 18 month period which will expire in February, 2012
and January, 2012, respectively.
As shown in Attachment A , Communications, Procurement, Hu man Resources/Labor
Relations, City Attorney, Building, Planning, Code Compliance , Police, and Fire have FY
service fund departments charge b ack allocations and transfers. The explanations of the
increases for these departments are provided in the following pages.
Citywide A ccounts also reflects an increase of $634,970, the majority of which is due to not
including savings that were included i n the FY 2010/11 adopted budget, specifically :
Approximately $ 420 ,000 that were est imated to
occur pending impasse . The FY 2011/12 budget assumed CWA pension savings,
and were budgeted
as a lump sum reduction under Citywide Accounts.
$214,000 in anticipated credit card savings due to anticipated renegotiation of bank
fees for credit card charges.
The givebacks were subsequently achieved through freezi ng merit increases,
providing for overtime to be incurred consistent with the Fair Labor Standards Acts, etc. , and
the resulting cost reductions are reflected in the FY 2011/12 CSL budget in each respective
department . Similarly, renegotiation of the cred it card charges for bank fees has been
completed and impacts are reflected in individual department budgets . Both the CWA
were budgeted as negative expenditure
amounts in FY 2010/11, and therefore, elimi
an increase in the FY 2011/12 budget. Net of these items the Citywide Accounts had,
effectively, no variances.
LTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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NOTE : Salari es and Benefits presented below include 3 percent COLA for a ll
employees ; the impact of 5 percent step increases for eligible FOP and IAFF emplo yees ;
a maximum of 2 percent performance - based merit increase for eligible employees in the
GSA and AFSCME bargaining unit and for unclassified and other , as well as health
insurance costs increases noted above.
1. Communications
2. Procurement
LTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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3. Human Resources/Labor Relations
4. C ity Attorney
LTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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5. Building Net*
*Adjusted for Plan B
LTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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6. Planning
7. Code Compliance Net *
*Adjusted for Plan B
LTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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8. Police
9. Fire Net*
CSL Budget Prior to
Pension and Internal
Service Fund Increase
Allocations
Adopted Budget* Variance
FY 2010/11 FY 2011/12 Over/(Under)
Expenditures $ 56,207,375 $ 57,523,168 $ 1,315,793
2.3%
Components
Salaries and Benefits - including $623,554 in increased health
insurance costs due to expiration in February, 2012 of the addition 5
percent contribution to offset City costs $ 1,266,363
Overtime 100,072
Uniforms 48,506
Increased promotional and entry level testing due to expiration of
lieutenant, captain and new hire lists 88,860
Other Professional Service Costs (11,046)
Contract Maintenance and Other Operating Expenditures (211,962)
Capital - purchase of one additional LP-15 monitor defibrillator for use
as a Fire Rescue reserve unit and for the frequent large scale events
requiring additional EMS units to be placed in service 35,000
Net $ 1,315,793
*Adjusted for Plan B
LTC #189 - 2011 Explanation for any increa ses in FY 2011 /12 General Fund I ndividual
D epartment B udgets in E xcess of 2 Percent more than the FY 2010/11 Adopted Budget
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CONCLUSION
As can be seen from the department variance details, and as explained in the proposed
operat ing millage agenda item presented to the Commission on July, 13, 2011 , the most
significant increases in the FY 2011/12 CSL budge t , other than pension and internal service
charges, are due to the following:
Previously bargained salary adjustments for empl oyees, including a 3 percent Cost of
Living Adjustment (COLA) for bargaining employees as of April, 2012; the impact of step
increases for employees in the Fraternal Order of Police ( FOP ) and International
Association of Fire Fighters ( IAFF ) bargaining uni ts; a maximum of 2 percent
performance -
Association (GSA) bargaining unit; and a maximum of 2 percent performance - based
merit increase for employees in the American Federation of State, Count y and Municipal
Employees bargaining unit (AFSCME) as of May, 2012. In addition, the 3 percent COLA
and 2 percent performance - based merit increase has been included for unclassified and
other employees consistent with past practice of treating all employe es equally.
O vertime cost primarily due to increases in Police court overtime .
Health insurance costs based on an estimated 10 percent increase over the current
Fiscal Year, as well as the expiration of the FOP and IAFF additional 5 percent
contribution t o City health insurance costs which was for an 18 month period, and which
will expire in February, 2012 and January, 2012, respectively.
Additional budget briefings will be held with the Finance and Citywide Projects Committee
(FCWPC) over the summer. Th ese began in June, 2011 with a discussion of capital project
pri orities. The next meeting is scheduled for July 28, 2011 to review various department
budgets, potential revenue enhancements and impacts of potential service level alternatives.
It is antic ipated that the Proposed Work Plan and Budget that will be published later this
Attachment
JGM/KGB