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Home My WebLink About118-21 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 118-21 File Number: 2021-0254 2021 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,905,000.00 TO FACILITATE THE CITY-WIDE 2021 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, the General Fund ended 2020 operations with a budget surplus of approximately $2,100,000.00; and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $1,448,000.00 for 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 $1,905,000.00 for 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, in the amount of $1,905,000.00 to fund the city-wide 2021 Employee Compensation Adjustment. PASSED and APPROVED on 4/6/2021 Page 1 Printed on 4J7121 Resolution. 118-21 File Number: 2021-0254 Attest: ltflll R T YLA .�� AItIFEvILLE'�= Kara Paxton, City Clerk Treasurer •�kANSPS Page 2 Printed on 417121 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 -� (479) 575-8323 Text File File Number: 2021-0254 Agenda Date: 4/6/2021 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C 1 2021 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,905,000.00 TO FACILITATE THE CITY-WIDE 2021 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, the General Fund ended 2020 operations with a budget surplus of approximately $2,100,000.00; and WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $1,448,000.00 for 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 $1,905,000.00 for 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, in the amount of $1,905,000.00 to fund the city-wide 2021 Employee Compensation Adjustment. City of Fayetteville, Arkansas Page 1 Printed on 41712021 Agenda Session Walk On 3/30/21 Paul A. Becker Submitted By City of Fayetteville Staff Review Form 2021-0254 Legistar File ID 4/6/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/29/2021 CHIEF FINANCIAL OFFICER (110) Submitted Date Division / Department Action Recommendation: A RESOLUTION APPROVING A BUDGET AMENDMENT IN THE AMOUNT OF $1,905,000 TO FACILITATE CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENTS FOR 2021. 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 $ 59,213,669.00 Does item have a cost? No Item Cost $ - Budget Adjustment Attached? Yes Budget Adjustment $ 1,905,000.00 Remaining Budget I $ 61,118,669.00 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF APRIL 6, 2021 TO: Mayor and City Council FROM: Paul A. Becker, Chief Financial Officer DATE: March 29, 2021 CITY COUNCIL MEMO 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. DISCUSSION: As was discussed during the 2021 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2020 operations and the Fire and Police Pay and Benefits Study recently completed. The General Fund ended 2020 operations with a budget surplus of $2.1M. 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 Police and Fire uniformed personnel by placing them on the new step pay plan structure at their current step effective 04/05/2021. • The plan would provide for a one step increase for eligible Police and Fire uniformed personnel beginning 04/05/2021 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 04/05/2021. • 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 #22, 2020 which equals a start date before 10/19/2020. • 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 #9, 2020 which equals a start date before 04/20/2020. 2 • The 2021 cost of this plan is projected to be $1,448,000 in the General Fund. The 2021 cost for all funds would be $1,905,000. • The on -going cost of the plan in future years will be $1,981,000 for the General Fund and $2,607,000 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 I M PACT 1010 - General $ 1,448,000 $ 1,981,000 2100 - Street 88,600 121,000 2130 - Parking 9,600 13,000 2180 - Community Development 10,300 14,000 2250 - Parks Development 47,300 65,000 2930 - Drug Law Enforcement Grant 1,600 2,000 5400 - Water and Sewer 157,100 215,000 5500 - Recycling and Trash Collection 97,600 134,000 5550 - Airport 12,900 18,000 9700 - Shop 32,000 44,000 Total $ 1,905,000 $ 2,607,000 3 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Non -Departmental (800) 2021 /Org2 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,905,000 TO FACILITATE CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENTS FOR 2021. COUNCIL DATE: LEGISTAR FILE ID#: Adjustment Number 4/6/2021 2021-0254 Hauy Black. 312912021 1:08 PM Budget Director TYPE: JOURNAL #: G LDAT E: D - (City Council) 4/6/2021 RESOLUTION/ORDINANCE I CHKD/POSTED: TOTAL 1,905,000 1,905,000 v.20210309 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5106.00 1,448,000 EX Personnel Contingency - General 2100.410.4100-5106.00 88,600 EX Personnel Contingency - General 2130.430.9130-5106.00 9,600 EX Personnel Contingency - General 2180.642.4930-5106.00 10,300 EX Personnel Contingency - General 2250.520.9250-5106.00 47,300 - EX Personnel Contingency - General 2930.200.2960-5106.00 1,600 - EX Personnel Contingency - General 5400.720.4000-5106.00 157,100 - EX Personnel Contingency - General 5500.750.5000-5106.00 97,600 - EX Personnel Contingency - General 5550.760.3940-5106.00 12,900 - EX Personnel Contingency - General 9700.770.1910-5106.00 32,000 - EX Personnel Contingency - General 1010.001.0001-4999.99 - 11448,000 RE Use Fund Balance - Current 2100.410.4100-4999.99 - 88,600 RE Use Fund Balance - Current 2130.430.9130-4999.99 - 9,600 RE Use Fund Balance - Current 2180.642.4930-4320.00 - 10,300 RE Grant Funding CDBG 2250.520.9250-4999.99 - 47,300 RE Use Fund Balance - Current 2930.200.2960-4999.99 - 1,600 RE Use Fund Balance - Current 5400.720.4000-4999.99 - 157,100 RE Use Fund Balance - Current 5500.750.5000-4999.99 - 97,600 RE Use Fund Balance - Current 5550.760.3940-4999.99 - 12,900 RE Use Fund Balance - Current 9700.770.1910-4999.99 - 32,000 RE Use Fund Balance - Current H:\Budget Adjustments\2021_Budget\City Council\04-06-2021\2021-0254 BA Employee Compensation Plan 2021 (April) 1 of 1