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Home My WebLink About62-15 RESOLUTIONRESOLUTION NO. 62-15 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,375,000.00 TO FUND THE CITY-WIDE 2015 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, the most recent forecast shows that City will have a net operating surplus for the General Fund of about $1,700.00 for 2014; and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $985,000.00 for 2015 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 $1,375,000.00 for 2015. 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 a budget adjustment, a copy of which is attached to this Resolution and made a part hereof, in the amount of $1,375,000.00 to fund the city-wide 2015 Employee Compensation Adjustment. PASSED and APPROVED this 3rd day of March, 2015. APPROVED: ATTEST: By: �� SONDRA E. SMITH, City Clerk/Treasurer ®®0v®'N� .�J Y\ 1p TRp!�sis •.° ® FAYET7EVIC_LEm-_'= City of Fayetteville, Arkansas 113 West Mountain Street �- Fayetteville, AR 72701 m 479-575-8323 ri Text File File Number: 2015-0081 Agenda Date: 3/3/2015 Version: 1 Status: Agenda Ready In Control: City Council File Type: Resolution Agenda Number: C. 4 2015 EMPLOYEE COMPENSATION ADJUSTMENT A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,375,000.00 TO FUND THE CITY-WIDE 2015 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, the most recent forecast shows that City will have a net operating surplus for the General Fund of about $1,700.00 for 2014; and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $985,000.00 for 2015 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 $1,375,000.00 for 2015. 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 a budget adjustment, a copy of which is attached to this Resolution and made a part hereof, in the amount of $1,375,000.00 to fund the city-wide 2015 Employee Compensation Adjustment. City of Fayetteville, Arkansas Page 1 Printed on 31612015 Paul A. Becker Submitted By City of Fayetteville Staff Review Form 2015-0081 Legistar File ID 3/3/2015 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/11/2015 Chief Financial Officer/ Finance & Internal Services Department Submitted Date Division / Department Action Recommendation: A RESOLUTION APPROVING A BUDGET AMENDMENT IN THE AMOUNT OF $1,375,000 TO FUND A CITY-WIDE 2015 EMPLOYEE COMPENSATION ADJUSTMENT. Budget Impact: xxxx.xxxx.51xx.xx CITYWIDE Account Number Fund N/A 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: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 47,902,194.00 $ 6,006,615.54 4.,695,576.46 $ 1,375,000.00 $ 43,270,57&46 V20140710 Approval Date: CITY OF ayVlqARKANS MEETING OF MARCH 3, 2015 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Paul A. Becker, Chief Financial Officer DATE: February 13, 2015 SUBJECT: Appropriation Authority for Employee Compensation Adjustments RECOMMENDATION: The Mayor's recommendation is for the City Council to appropriate funds to provide for the compensation package outlined above. DISCUSSION: As discussed during the 2015 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2014 operations. The operating results from the fourth quarter of 2014 have been forecasted to be a net operating surplus of approximately $1.7 million in the General Fund. This is after adjusting for reserve transfers for the purchase of Mount Kessler and the parking deck. This surplus was achieved primarily through expense control. The Administration was able, through good management, to hold expenditures under budget. Revenue was approximately as projected on an overall basis. Other operating funds such as the Street, Parks Development, Water & Sewer and Recycling & Trash Collection funds have the capacity to afford these salary increases. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 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. Based on these results, the Mayor is recommending the following compensation package to the Council: • The plan will incorporate a two-step movement for eligible uniformed Fire personnel keeping everyone in a step. • The plan would provide for a one step increase for eligible Police uniformed personnel beginning 3/16/2015 keeping everyone in a step. • The plan would provide for merit increases for other employees comparable to the amount provided for a step to uniformed personnel, to be distributed based on merit (3.75%). • Amounts to merit employees will be based on performance as determined by the appropriate department/division head. These increases will go into effect beginning 3/16/2015. • Employees at the top of their ranges will be eligible for a single year service award which will not be factored into the employee's base pay. • To be eligible merit employees must have completed at least six (6) months of service as of 3/31/2015. • Uniformed personnel must have completed at least one year of service as of 3/31/2015 to receive a step increase. • The 2015 cost of this plan is projected to be $985,000 in the General Fund. The 2015 cost for all funds would be $1,375,000. • The on -going cost of the plan in future years will be $1,281,000 for the General Fund and $1,790,000 for all funds. 2 BUDGET/STAFF IMPACT: The impact of this proposal would be to increase the budgets for various funds as follows: 2100 - Street 79,E 103,E 3.75% 2130- Parking 10,00 13,E 3.75% 2180- Com unity Development Block Grant 5,000 7,000 3.751 225 Parks DeveIopnnent..:. 35,000 46,E 3.75% 2930- Dug Lave Enforcement ...... 8,000 . _, _. . , .. , .... ... 10,E .. .. .,. ... ... , 3.55% ... ,...,,,.., ..... .. ._ W..m ,...... w...�.. .......„ .......... _ .. ... ........ .. -54 Water &Sewer ......._ _......, m....._ . ........... ..�.m..,... ...._. .... _ �_._ .-.._..� .. 129,000 .._ �. ...... ,. _ .. _. 168,E .�_...._ .. .._.._....� .....�...._ �....,.... 3.75% ......,...,....... 5.500- Recycling &Trash collection _._.,,............. ... 9.5,000 „_.,. _ ... _ .... ... 111,000 ...... .. ...,...., ..,._, 3.75% .. . _ _, .„__.,. ,.. _, ,, .,.... ......_..... .,._....... ............ ....�......., 5550 -Airport 14,000 18,000 3.75% 9700- Shop 2.5,000 33,008 3.75% Total 1,37'5,000 1,790,000 3.82 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division: Citywide 2015 Dept.: Citywide Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Adjustment Number $1,375,000 in additional funding is requested Citywide in Salary Contingency for 2014 Employee Compensation Adjustments. The $1,370,000 will come from the Use of Fund Balance accounts Citywide and the $5000 will come from within existing grant funds. COUNCIL DATE: LEGISTAR FILE ID#: 3/3/2015 2015-0081 7("&w Spry 2/18/2015 10:53 AM Budget Director TYPE: DESCRIPTION: GLDATE: Date RESOLUTION/ORDINANCE I POSTED: / TOTAL 1,375,000 1,375,000 v.20150102 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub AT Account Name 1010.0001.4999.99 - 985,000 RE Use of Fund Balance 1010.6600.5100.01 985,000 - EX Salary Contingency 2100.0910.4999.99 - 79,000 RE Use of Fund Balance 2100.4100.5100.01 79,000 - EX Salary Contingency 2130.0913.4999.99 - 10,000 RE Use of Fund Balance 2130.9130.5100.01 10,000 - EX Salary Contingency 2180.4930.5100.01 5,000 - EX Salary Contingency 2180.0918.4320.00 - 5,000 RE Grant Funding CDBG 2250.0925.4999.99 - 35,000 RE Use of Fund Balance 2250.9250.5100.01 35,000 - 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 - 129,000 RE Use of Fund Balance 5400.4000.5100.01 129,000 - -------- EX - Salary Contingency 5500.0950.4999.99 - 85,000 RE Use of Fund Balance 5500.5000.5100.01 85,000 - EX Salary Contingency 5550.0955.4999.99 - 14,000 RE Use of Fund Balance 5550.3940.5100.01 14,000 - EX Salary Contingency 9700.0970.4999.99 - 25,000 RE Use of Fund Balance C:\Users\dmccoy\App Data\Roaming\L5\Temp\b9bf7a56-35df-4f63-bd49-6775e21 1 c647 1 of 1