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Home My WebLink About56-14 RESOLUTIONRESOLUTION NO. 56-14 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,216,000.00 TO FUND THE CITY-WIDE 2014 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, the most recent forecast shows that City will have a net operating surplus for the General Fund of about $862,000.00 for 2013; and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $804,000.00 for 2014 for General Fund employees; and WHEREAS, including all employees (Water and Sewer, Solid Waste, etc. as well as General Fund employees), the cost will be about $1,216,000.00 for 2014. 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 $1,216,000.00 to fund the city-wide 2014 Employee Compensation Adjustment. PASSED and APPROVED this 4th day of March, 2014. APPROVED: ATTEST: Mayor By: SONDRA E. SMITH, City Clerk/Treasurer .0.011111,11/ E.74;1:°\: C T- V YE Vd.: irA City of Fayetteville Staff Review Form 2014-0092 Legistar File Number 3/4/2014 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Paul A. Becker Submitted By Finance & Internal Services / Chief Financial Officer Action Required: Department / Division A RESOLUTION APPROVING A BUDGET AMENDMENT IN THE AMOUNT OF $1,216,000 TO FUND A CITY-WIDE 2014 EMPLOYEE COMPENSATION ADJUSTMENT. Budget Impact: XXXX.XXXX.51XX.XX Account Number N/A Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? Yes Previous Ordinance or Resolution # Original Contract Number: Comments: CITYWIDE Fund N/A Project Title Current Budget 46,885,280.00 Funds Obligated 5,945,540.00 Current Balance Item Cost Budget Adjustment Remaining Budget 40,939,740.00 40,939,740.00 20140127 -tg-itif s4JJ%Q. 41,"-- /A^ 2—/f4 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 FROM: Paul A Becker, Finance Director DATE: 3/4/2014 SUBJECT: Appropriation Authority for Employee Compensation Adjustments PROPOSAL: As discussed during the 2014 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2013 operations. The operating results from the fourth quarter of 2013 have been forecasted to be a net operating surplus of approximately $862,000 in the General Fund. The budget had originally been formulated on the use of $1.4 million of reserves. This surplus was achieved through a combination of revenue increases and expense control. The Administration was able, through good management, to hold expenditures under budget. In addition revenues collected were 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. • 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 3/17/2014 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 3/17/2014. • 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 03/31/2014. • Uniformed personnel must have completed at least one year of service as of 3/31/2014 to receive a step increase. • The 2014 cost of this plan is projected to be $804,000 in the General Fund. The 2014 cost for all funds would be $1,216,000. • The on-going cost of the plan in future years will be $1,072,000 for the General Fund and $1,623,000 for all funds. 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: Fundng ounce Aaustment 1010- General 2100- Street 2130 - Parking 2250 - Parks Development 2930 - Drug Law Enforcement 5400 - Water &Sewer 5500 - Solid Waste 5550 - Airport 9700- Shop 804,000 90,000 10,500 36,000 8,000 142,000 83,000 15,000 27,500 Total $ 1,216,000 RESOLUTION NO. A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,216,000.00 TO FUND THE CITY-WIDE 2014 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, the most recent forecast shows that City will have a net operating surplus for the General Fund of about $862,000.00 for 2013; and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $804,000.00 for 2014 for General Fund employees; and WHEREAS, including all employees (Water and Sewer, Solid Waste, etc. as well as General Fund employees), the cost will be about $1,216,000.00 for 2014. 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 $1,216,000.00 to fund the city-wide 2014 Employee Compensation Adjustment. PASSED and APPROVED this 4th day of March, 2014. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer City of Fayetteville, Arkansas - Budget Adjustment Form Budget Year 2014 Division: Citywide Dept.: Citywide Requestor: Kevin Springer Adjustment Number BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION $1,216,000 in additional funding is requested Citywide in Salary Contingency for 2014 Employee Compensation Adjustments. The $1,216,000 will come from the Use of Fund Balance accounts Citywide. Division Head Date Department Director Date 2- 11.200/ Chief Financial Officer Date Chief of Staff Date Mayor Date REQUEST DATE: LEGISTAR ID#: 3/4/2014 2014-0092 BUDGET & INFORMATION MANAGEMENT USE Bifdget Director Date Y TYPE: DA LB EC EID EIE OP DESCRIPTION: GLDATE: POSTED: TOTAL 1,216,000 1,216,000 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub AT Account Name 1010.0001.4999.99 804,000 RE Use of Fund Balance 1010.6600.5100.01 804,000 EX Salary Contingency 2100.0910.4999.99 90,000 RE Use of Fund Balance 2100.4100.5100.01 90,000 - EX Salary Contingency 2130.0913.4999.99 10,500 RE Use of Fund Balance 2130.9130.5100.01 10,500 EX Salary Contingency 2250.0925.4999.99 36,000 RE Use of Fund Balance 2250.9250.5100.01 36,000 EX Salary Contingency 2930.0993.4999.99 8,000 RE Use of Fund Balance 2930.2960.5100.01 8,000 EX Salary Contingency 5400.0940.4999.99 142,000 RE Use of Fund Balance 5400.4000.5100.01 142,000 EX Salary Contingency 5500.0950.4999.99 83,000 RE Use of Fund Balance 5500.5000.5100.01 83,000 EX Salary Contingency 5550.0955.4999.99 - 15,000 RE Use of Fund Balance 5550.3940.5100.01 15,000 EX Salary Contingency 9700.0970.4999.99 - 27,500 RE Use of Fund Balance 9700.1910.5100.01 27,500 EX Salary Contingency H: \ Budget\ Budget Adjustments \ 2014_Budget \ LEGISTAR \ 2014_03_04 \ BAF_2014_ECP 2014-0092.xlsm V' 0, 'i/.7471t/ c)?°/ elliakV affi2A,Autko;1 /4441poin*el, General Fund 2013 Operating Results & Mayor Recommended Compensation Plan February 25, 2014 2013 General Fund Operating Results Revenues Expenses 37,373,707 36,502,987 General Fund 2013 Ending Fund Balance Projection as ofJune 11, 2013 2,0951000) Required Reserve (5,700,000) General Fund 2014 Projected Ending Fund Balance (If Revenue Projections are Met) alanc 5)14(•to°° Cost of Recommended Plan Funds u Year mpact Impact General 804,000 Street Parking 824,000 94,000 12,000 42,000 11,000 131,000 76,000 15,000 28,000 Drug Law Enforcement Water & Sewer Solid Waste rpor Shop Significant Considerations General Fund surplus for 2013 is estimated to be $870,000. 4 Impact on the General Fund for 2014 would be $804,000. 4 Ongoing cost to the General Fund into 2015 would be $824,000. ik If sales tax revenue alone is needed to continue this salary increase into 2015, sales taxes would need to increase by an additional 3.6%. The first month of sales tax results for Fiscal 2014 was $96,642 under budget for the General Fund. Under normal operating conditions, not all expenditure budgets authorized are used, normally there are appropriations that lapse. However, this can not be predicted with certainty or accuracy. Smith, Sondra 411(140( ad- at At e44 fYl.t2--AA.46 3-4'--/V av> 416~ From: Becker, Paul Sent: Monday, March 03, 2014 12:36 PM To: Smith, Sondra Subject: Informational Change to the City Council Agenda Memo for item 2014-0092 Employee Compensation Recommendation 2014 Attachments: Salary Increases for 2014.docx Sondra Would you send this revised City Council Memo to the Aldermen and substitute it for the original in the Agenda Packet? The estimated costs of this plan in future years is $824,000 for the General Fund and $1,233,000 for all funds. The amounts referenced in the original memo of $1,072,000 for the General Fund and $1,623,000 is incorrect. The future costs are much less than originally estimated because of the number of employees that would receive service awards that will not be included in their future salary base. Thank You Paul Becker 1 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 FROM: Paul A Becker, Finance Director DATE: 3/4/2014 SUBJECT: Appropriation Authority for Employee Compensation Adjustments PROPOSAL: As discussed during the 2014 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2013 operations. The operating results from the fourth quarter of 2013 have been forecasted to be a net operating surplus of approximately $862,000 in the General Fund. The budget had originally been formulated on the use of $1.4 million of reserves. This surplus was achieved through a combination of revenue increases and expense control. The Administration was able, through good management, to hold expenditures under budget. In addition revenues collected were 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. • 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 3/17/2014 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 3/17/2014. • 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 03/31/2014. • Uniformed personnel must have completed at least one year of service as of 3/31/2014 to receive a step increase. • The 2014 cost of this plan is projected to be $804,000 in the General Fund. The 2014 cost for all funds would be $1,216,000. • The on-going cost of the plan in future years will be $824,000 for the General Fund and $1,233,000 for all funds. 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 udgef Adjustrtient 1010 •-• 'General :2100- Street 2130 - Parking 2250 - Parks Development 2930 - Drug Law Enforcement 5400 - Wafer & Sewer. 5500 - Solid Waste . 55.50 - Airport 9700 - Shop. $ 804,000 90,000 1a500 36,000 8,000 142,000 83,000 15,000 27,500 Told $ 1,216,000