HomeMy WebLinkAbout52-12 RESOLUTIONRESOLUTION NO. 52-12
A RESOLUITON TO APPROVE A BUDGET ADJUSTMENT OF
$1,154,000.00 TO FUND A CITY-WIDE 2012 EMPLOYEE COMPENSATION
ADJUSTMENT
WHEREAS, Mayor Jordan informed the City Council prior to its adoption of the 2012
Budget that he would present a comprehensive, compensation package for all employees with at
least six (6) months service if the final results of the 2011 Budget justified such pay increase; and
WHEREAS, the City Administration and employees were able to hold expenditures to
$600,000.00 less than the authorized amount of the 2011 budget expenditures; and
WHEREAS, City revenues grew such that rather than the estimated required use of
$450,000.00 from reserves, a new surplus of about $1,360,000.00 was achieved; and
WHEREAS, Mayor Jordan and his Administration recommend that this net surplus be
used: (1) to replace the use of existing reserves ($500,000.00) in the 2012 budget; (2) to fund
step increases for fire and police and generally comparable merit raises for other General Fund
employees in the approximate amount of $764,000.00; and (3) to place about an additional
$100,000.00 in the General Fund Reserves; and
WHEREAS, non General Fund employees will receive approximately $390,000.00 in
generally comparable merit raises funded by other appropriate funds.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the attached Budget Adjustment in the amount of $1,154,000.00 and approves the Mayor's
proposed Employee Compensation Adjustment Plan by providing funds for step increases for
fire and police sworn personnel with at least one year of service to the City as of March 31, 2012
and merit increases (if authorized by supervisors) of non -uniformed city employees for qualified
employees with at least six (6) months of service to the City as of March 31, 2012.
PASSED and APPROVED this 6th day of March, 2012.
APPROVED:
NELD i AN, Mayor
ATTEST:
By: 1/4CK Y 0:e
LISA BRANSON, Deputy City C1erke3i
.
Et. :FAYETTEVILLE: 11,
YLPA,°*1,11/14
11/6°1-76A'C'°'''
1\ct4
Paul A. Becker
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
3/6/2012
City Council Meeting Date
Finance & Internal Services
Division
Action Required:
Finance & Internal Services
Department
A Budget Amendment for $1,154,000 is requested Citywide for 2012 Employee Compensation Adjustments.
1,154,000
Cost of this request
)000CXXXX.51XX.XX
Account Number
Project Number
Budgeted Item
X
42,466,864
Category / Project Budget
6,735,626
Personnel Services
Program Category / Project Name
Citywide
Funds Used to Date Program / Project Category Name
35,731,238
Citywide
Remaining Balance Fund Name
Budget Adjustment Attached
X
ct,
Department Director
City Attorney
Previous Ordinance or Resolution #
1— 2_
Date Original Contract Date:
Original Contract Number:
—
Date
Pate
J
Date
Received in City Clerk s Offi e
'icH02:23 RCVD
Received in Mayor's Office
Comments:
Treteville
THE CITY OF FAYETTEVILLE, ARKANSAS
BUDGET & RESEARCH DIVISION
113 West Mountain Street
Fayetteville, AR 72701
P (479) 575-8347
ARKANSAS
www.accessfayetteville.org
CITY COUNCIL AGENDA MEMO
TO: Mayor Jordan and Members of the Fayetteville City Council
THRU: Don Marr, Chief of Staff DIAN--
FROM: Paul A Becker, Finance Director ?III?'
DATE: 3/6/2012
SUBJECT: Appropriation Authority for Employee Compensation Adjustments
PROPOSAL:
As discussed during the 2012 Budget process, the Mayor is recommending a
compensation package to the City Council based on the fiscal results of 2011
operations. The operating results from the fourth quarter of 2011 have been
posted. The result for fiscal 2011 shows a net operating surplus of approximately
$1.4 million in the General Fund. The budget had been formulated on the use of
$449,000 from reserves. Thus, rather than incurring a deficit a surplus was
experienced.
This surplus was achieved through a combination of revenue increases and
expense control. The Administration was able, through good management, to
hold expenditures $600,000 dollars under budget. In addition revenues collected
were well over budget.
Other operating funds such as the Street, Water and Sewer and Solid Waste also
showed positive numbers for the year.
The Mayor's Guiding Philosophy
• Recommendation supports on-going funding without risking future layoffs.
• Address market pay for existing positions before any consideration of new
positions.
• Employees with at least six (6) months of service to the City qualify for an
appropriate increase in compensation.
THE CITY OF FAYETTEVILLE, ARKANSAS
Based on these results, the Mayor is recommending the following compensation
package to the Council:
• The plan would provide for step increases for uniformed personnel
beginning 3/19/2012 keeping everyone in a step.
• The plan would provide for merit increases for other employees
comparable to the amount provided to uniformed personnel, to be
distributed based on merit.
• Amounts to merit employees will be based on performance as determined
by the appropriate department/division head. These raises will go into
effect beginning 3/19/2012.
• Employees at the top of their ranges will be eligible for a single year
discretionary bonus.
• To be eligible merit employees must have completed at least six (6)
months of service as of 03/31/2012.
• Uniformed personnel must have completed at least one year of service as
of 3/31/2012 to receive a step increase.
• The 2012 cost of this plan is projected to be $764,000 in the General Fund.
The 2012 cost for all funds would be $1,154,000.
• The on-going cost of the plan in future years will be $993,000 for the
General Fund and $1,500,000 for all funds.
• The 2012 pay plan cost plus use of reserves in the 2012 Budget is less than
the 2011 surplus. $1,363,000 - $764,000 - $500,000 = $99,000.
RECOMMENDATION:
The Mayors recommendation is for the City Council to appropriate funds to
provide for the compensation package outlined above.
THE CITY OF FAYETTEVILLE, ARKANSAS
BUDGET IMPACT:
The impact of this proposal would be to increase the budgets for various funds as
follows:
Funding Source
1010- General
2100- Street
2130- Parking
2180 - Community Development Block Grant
2250 - Parks Development
2930 - Drug Law Enforcement
5400 - Water & Sewer
5500 - Solid Waste
5550 - Airport
9700 - Shop
Grand Total
Budget
Adjustment
764,000
85,100
7,200
4,500
33,600
7,500
136,500
80,700
9,400
25,500
1,154,000
RESOLUTION NO.
A RESOLUITON TO APPROVE A BUDGET ADJUSTMENT OF
$1,154,000.00 TO FUND A CITY-WIDE 2012 EMPLOYEE COMPENSATION
ADJUSTMENT
WHEREAS, Mayor Jordan informed the City Council prior to its adoption of the 2012
Budget that he would present a comprehensive, compensation package for all employees with at
least six (6) months service if the final results of the 2011 Budget justified such pay increase; and
WHEREAS, the City Administration and employees were able to hold expenditures to
$600,000.00 less than the authorized amount of the 2011 budget expenditures; and
WHEREAS, City revenues grew such that rather than the estimated required use of
$450,000.00 from reserves, a new surplus of about $1,360,000.00 was achieved; and
WHEREAS, Mayor Jordan and his Administration recommend that this net surplus be
used: (1) to replace the use of existing reserves ($500,000.00) in the 2012 budget; (2) to fund
step increases for fire and police and generally comparable merit raises for other General Fund
employees in the approximate amount of $764,000.00; and (3) to place about an additional
$100,000.00 in the General Fund Reserves; and
WHEREAS, non General Fund employees will receive approximately $390,000.00 in
generally comparable merit raises funded by other appropriate funds.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves
the attached Budget Adjustment in the amount of $1,154,000.00 and approves the Mayor's
proposed Employee Compensation Adjustment Plan by providing funds for step increases for
fire and police sworn personnel with at least one year of service to the City as of March 31, 2012
and merit increases (if authorized by supervisors) of non -uniformed city employees for qualified
employees with at least six (6) months of service to the City as of March 31, 2012.
PASSED and APPROVED this 6th day of March, 2012.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
City of Fayetteville, Arkansas
Budget Adjustment Form
V11.0222
Budget Year
2012
Division: *ALL DIVISION(S)
Department: Citywide
Request Date
3/8/2011
Adjustment Number
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION
$1,154,000 in additional funding is requested Citywide in Salary Contingency for 2012 Employee Compensation
Adjustments.
The $1,149,500 will come from the Use of Fund Balance accounts Citywide and 4,500 will come from existing CDBG
Budgeted Salary Contingency.
4cu,S1
"2.- 2.4
Date
Division Head
BrJdget Director
Prepared By: Kevin Springer
Reference:
kspringer
Date Budget & Research Use Only
Department Director Date
C\ Zg-Ifn 2
Finance Director Date
Date
Account Name
Type: A
General Ledger Date
Posted to General Ledger
Checked / Verified
TOTAL BUDGET ADJUSTMENT 1,149,500 1,149,500
Account Number
Increase / (Decrease) Project.Sub
Expense Revenue Number
Use of fund balance
1010.0001.4999.99
764,000
Use of fund balance 2100.0910.4999.99 85,100
Use of fund balance 2130.0913.4999.99 7,200
Use of fund balance
2250.0925.4999.99 33,600
Use of fund balance
Use of fund balance
2930.0993.4999.99 7,500
5400.0940.4999.99 136,500
Use of fund balance
Use of fund balance
5500.0950.4999.99 80,700
5550.0955.4999.99 9,400
Use of fund balance
Salary contingency
9700.0970.4999.99
1010.6600.5100.01
764,000
25,500
Salary contingency
Salary contingency
2100.4100.5100.01
2130.9130.5100.01
85,100
7,200
••••
Salary contingency
Salary contingency
2180.4930.5100.01
2180.4930.5100.01
(4,500)
4,500
Salary contingency
Salary contingency
2250.9250.5100.01
2930.2960.5100.01
33,600
7,500
Salary contingency
Salary contingency
5400.4000.5100.01
5500.5000.5100.01
136,500
80,700
Salary contingency
Salary contingency
5550.3940.5100.01
9700.1910.5100.01
9,400
25,500
H:\Budget\Projects for Pau1\2012\Payplanincrease\BAFORM_2012_Personnel_Services_Bonus.xls
0,1\0
a/on/u
General Fund
2011 Operating Results
February 28, 2012
4:30 PM
2011 General Fund
Operating Results
Less: Reserve Required by Re -budgets (730,000)
Adjusted Surplus
$ 1,363,000
2011 General Fund
Operating Results
Surplus due to Expenditure $ 649,000
(Total Revenue Over Projections is $1,1631000)
Mayor's Compensation Plan
Guiding Philosophy
Recommendation supports on-going funding
without risking future layoffs.
Address market pay for existing positions before
any consideration of new positions.
Employees with at least six (6) months of
service to the City qualify for an appropriate
increase in compensation.
Mayor's Employee Compensation Plan
The plan would provide for step increases for uniformed
personnel beginning 3/19/2012, keeping everyone in a step.
4 The plan would provide for merit increases for other employees
comparable to the amount provided to uniformed personnel, to
be distributed based on merit.
4 Amounts to merit employees will be based on performance as
determined by the appropriate department/division head.
These raises will go into effect beginning 3/19/2012.
o Employees at the top of their ranges will be eligible for a single
year discretionary bonus.
Mayor's Employee Compensation Plan -
Continued
To be eligible merit employees must have completed at least six
(6) months of service as of 03/31/2012.
O Sworn personnel must have completed at least one year of
service as of 3/31/2012 to receive a step increase.
O The 2012 cost of this plan is projected to be $764,000 in the
General Fund. The 2012 cost for all funds would be $1,154,000.
4 The on going cost of the plan in future years will be $993,000 for
the General Fund and $1,500,000 for all funds.
4 The 2012 pay plan cost plus use of reserves in the 2012 Budget
is less than the 2011 surplus. $1,363,000 - $764,000 - $500,000
= $99,000.
General Fund
2012 Revenue Budget Review
Actual 2011 General Fund
Revenue Collections over
2012 Projections
Recurring Amounts
m
Budgeted 2012 Revenue
(35 621, 000)
Franchise Fees
87,000
CMRS Reimbursement
General Fund
2012 Revenue Budget Review
ti Potential 2012 Revenue Outcome if conditions stay the
same.
4* Collections Flat to 2012 Actual and 2.25% Increase in Sales
Tax.
Recurring Amounts Collected
466,000
General Fund
2011 Ending Fund Balance Analysis
12/31/2011
Less: Cash Funded Re -budget Adjustment
Adjusted Fund Balance
Less: 60 Day Reserve
(5,633,000)
Estimated 2012 General Fund
Ending Fund Balance Analysis
Based on Adopted Budget Estimates
2012 Calculation
Free Reserve
Less: Cash Funded Re -budgets
Current
Less: Required Reserve
(5 633 000)