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Home My WebLink About28-21 RESOLUTION O FP1'ErJ\ AFL C 113 West Mountain Street Fayetteville,AR 72701 (479)575-8323 Resolution: 28-21 File Number: 2020-1129 2021 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,700,000.00 TO FACILITATE THE CITY-WIDE 2021 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS,although the General Fund had a deficit in 2019 operations,it was caused by a number of one-time capital expenditures;and WHEREAS,Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about$1,063,000.00 in 2021 for General Fund employees;and WHEREAS,including all employees(Water and Sewer,Recycling and Trash Collection,etc.as well as General Fund employees),the cost will be about$1,700,000.00 in 2021. 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 $1,700,000.00 to fund the city-wide 2021 Employee Compensation Adjustment. PASSED and APPROVED on 1/7/2021 Page 1 Printed on 1/8/21 Resolution: 28-21 File Number: 2020-1129 Approved: Attest: Lioneld Jorda or Kara Paxton. City Clerk Treasurer::: : �2> •0_ Page 2 Printed on 1/8/21 p,E- F City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville,AR 72701 V Jm .I I (479)575-8323 Text File 'AK""oS File Number: 2020-1129 Agenda Date: 1/7/2021 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C.3 2021 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,700,000.00 TO FACILITATE THE CITY-WIDE 2021 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS,although the General Fund had a deficit in 2019 operations, it was caused by a number of one-time capital expenditures;and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about$1,063,000.00 in 2021 for General Fund employees; and WHEREAS,including all employees(Water and Sewer, Recycling and Trash Collection,etc.as well as General Fund employees),the cost will be about$1,700,000.00 in 2021. 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$1,700,000.00 to fund the city-wide 2021 Employee Compensation Adjustment. City of Fayetteville,Arkansas Page 1 Printed on 1/8/2021 City of Fayetteville Staff Review Form 2020-1129 Legistar File ID 1/5/2021 City Council Meeting Date-Agenda Item Only N/A for Non-Agenda Item Paul A. Becker 12/17/2020 CHIEF FINANCIAL OFFICER (110) Submitted By Submitted Date Division/ Department Action Recommendation: A RESOLUTION APPROVING A BUDGET AMENDMENT IN THE AMOUNT OF $1,700,000 TO FACILITATE CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENTS FOR 2021. THESE COMPENSATION ADJUSTMENTS WERE DEFERRED AT THE APRIL 7, 2020 CITY COUNCIL MEETING DUE TO COVID-19. Budget Impact: xxxx.xxx.xxxx-51xx.xx Citywide Account Number Fund N/A N/A Project Number Project Title Budgeted Item? Yes Current Budget $ 59,213,669.00 Funds Obligated $ - Current Balance S 59,213,669.00 Does item have a cost? No Item Cost $ - Budget Adjustment Attached? Yes Budget Adjustment $ 1,700,000.00 Remaining Budget S 60,913,669.0C V20180321 Purchase Order Number: Previous Ordinance or Resolution# Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE CITY COUNCIL MEMO ARKANSAS MEETING OF JANUARY 5, 2021 TO: Mayor and City Council FROM: Paul A. Becker. Chief Financial Officer DATE: December 17, 2020 SUBJECT: 2021 Employee Compensation Appropriation Authority RECOMMENDATION: The Mayor's recommendation is for the City Council to appropriate funds to provide for the compensation package outlined below. This item was tabled indefinitely at the April 7, 2020 City Council meeting due to the onset of COVID-19. DISCUSSION: As was discussed during the 2020 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2019 operations and the Merit Pay and Benefits Study completed earlier in 2020. At this time based on revenue results through November 2020, it is felt that the plan presented in April 2020 is now affordable, and its implementation is recommended. Although the General Fund had a deficit in 2019 operations, it was caused by a number of one-time capital expenditures. 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 pay increases with minimal risks that can be supported by potential future revenue growth. • Compensating personnel at market levels based on a pay study conducted by a selected professional firm specializing in the design of compensation plans. Based on these results, the Mayor is recommending the following compensation package to the Council: • The plan would provide an increase to merit personnel falling under the new minimum of the range effective 01/11/2021. • The plan would provide for a one step increase for eligible Police and Fire uniformed personnel beginning 01/11/2021 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 (4.0% merit pools will be created for that purpose). • Amounts to merit employees will be based on performance as determined by the appropriate department/division head. These increases will go into effect beginning 01/11/2021. • To be eligible merit employees must have completed at least six (6) months of service which means they must have been paid on Pay Period #21, 2019 which equals a start date before 10/6/2019. • Uniformed personnel to be eligible to receive a step increase must have completed at least one year of service which means they must have been paid on Pay Period #8, 2019 which equals a start date before 4/7/2019. • The 2021 cost of this plan is projected to be $1,063,000 in the General Fund. The 2021 cost for all funds would be $1,700,000. 2 • The on-going cost of the plan in future years will be $1,105,000 for the General Fund and $1,766,000 for all funds. BUDGET/STAFF IMPACT: The impact of this proposal would be to increase the budgets for various funds as follows: 2021 - Step / Merit Payplan Impact PARTIAL ANNUAL FUNDING SOURCE IMPACT IMPACT 1010 - General $ 1,063,000 $ 1,105,000 2100 - Street 118,700 123,000 2130 - Parking 15,800 16,000 2180 - Community Development 12,100 13,000 2250 - Parks Development 57,000 59,000 2930 - Drug Law Enforcement Grant 8,100 8,000 5400 - Water and Sewer 239,100 249,000 5500 - Recycling and Trash Collection 126,700 132,000 5550 - Airport 19,600 20,000 9700 - Shop 39,900 41,000 Total $ 1,700,000 $ 1,766,000 3 City of Fayetteville, Arkansas - Budget Adjustment Form Budget Year Division Adjustment Number Non-Departmental (800) 2021 (BY) /Org2 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION /JUSTIFICATION: A BUDGET ADJUSTMENT IN THE AMOUNT OF$1,700,000 TO FACILITATE CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENTS FOR 2021. REQUEST DATE: 12/1 6/2020 Division Head Date xeNtwSpY - 12/16/2020 9:29 AM Department Director Date Budget Director Date TYPE: D - (City Council) Chief Financial Officer Date JOURNAL #: 1/5/2021 GLDATE: Chief of Staff Date CHKD/POSTED: v.20201 1 12 TOTAL 1,700,000 1,700,000 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5106.00 1,063,000 - EX Personnel Contingency-General 2100.410.4100-5106.00 118,700 - EX Personnel Contingency-General 2130.430.9130-5106.00 15,800 - EX Personnel Contingency-General 2180.642.4930-5106.00 12,100 - EX Personnel Contingency-General 2250.520.9250-5106.00 57,000 - EX Personnel Contingency-General 2930.200.2960-5106.00 8,100 - EX Personnel Contingency-General 5400.720.4000-5106.00 239,100 - EX Personnel Contingency-General 5500.750.5000-5106.00 126,700 - EX Personnel Contingency-General 5550.760.3940-5106.00 19,600 - EX Personnel Contingency-General 9700.770.1910-5106.00 39,900 - EX Personnel Contingency-General 1010.001.0001-4999.99 - 1,063,000 RE Use Fund Balance-Current 2100.410.4100-4999.99 - 118,700 RE Use Fund Balance-Current 2130.430.9130-4999.99 - 15,800 RE Use Fund Balance-Current 2180.642.4930-4320.00 - 12,100 RE Grant Funding CDBG 2250.520.9250-4999.99 - 57,000 RE Use Fund Balance-Current 2930.200.2960-4999.99 - 8,100 RE Use Fund Balance-Current 5400.720.4000-4999.99 - 239,100 RE Use Fund Balance-Current 5500.750.5000-4999.99 - 126,700 RE Use Fund Balance-Current 5550.760.3940-4999.99 - 19,600 RE Use Fund Balance-Current 9700.770.1910-4999.99 - 39,900 RE Use Fund Balance-Current H:\Budget Adjustments\2021_Budget\City Council\01-05-2021\BA 2020-1129 Employee Compensation 2021.xlsm 1 of 1