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Home My WebLink About61-23 RESOLUTION0 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 61-23 File Number: 2023445 2023 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $3,800,000.00 TO FACILITATE THE CITY-WIDE 2022 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about S4,745,300.00 for 2023 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 $5,500,000.00 for 2023. 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 $3,800,000.00 to fund the city-wide 2023 Employee Compensation Adjustment. PASSED and APPROVED on March 7, 2023 Page 1 Attest: CITY OF Pow, FAYETTEVILLE ARKANSAS MEETING OF MARCH 7, 2023 TO: Mayor Jordan and City Council THRU: CITY COUNCIL MEMO FROM: Paul Becker, Chief Financial Officer DATE: SUBJECT: 2023 Employee Compensation Appropriation Authority RECOMMENDATION: 2023-445 The Mayor's recommendation is for the City Council to appropriate funds to provide for the compensation package outlined below. BACKGROUND: As was discussed during the 2023 Budget process, the Mayor is recommending a compensation package to the City Council based on the fiscal results of 2022 operations and the Police and Fire Staff Pay and Benefits Study and the 2022 Compression pay study recently completed. The General Fund ended 2022 operations with a budget surplus of $7.OM. Other operating funds such as the Street, Parks Development, Water & Sewer and Recycling & Trash Collection funds have the capacity to afford these salary increases. DISCUSSION: The Mayor's Guiding Philosophy • The 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 for Police and Fire uniformed personnel by placing them on the new step pay plan structure at their current step effective 04/03/2023. • The plan would provide for a one-step increase for eligible uniformed personnel (Fire only) beginning 04/03/2023, keeping everyone in a step. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 • The plan would provide for merit increases for other employees to be distributed based on merit (6.0% 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 04/03/2023. • 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, 2022, which equals a start date before 10/16/2022. • Uniformed personnel (Fire only) 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, 2022, which equals a start date before 04/17/2022. • The 2023 cost of this plan is projected to be $4,745,300 in the General Fund. The 2023 cost for all funds would be $5,500,000. • The on -going cost of the plan in future years will be $6,491,200 for the General Fund and $7,522,600 for all funds. BUDGET/STAFF IMPACT: The impact of this proposal would be to increase the budgets for various funds as follows: 2023 - Step / Merit Payplan Impact ANNUAL PARTIAL BUDGET FUNDING SOURCE IMPACT IMPACT ADJUSTMENT 1010 - General $ 6,491,200 $ 4,745,300 $ 3,045,300 2100 - Street 194,516 135,000 135,000 2130 - Parking 30,193 22,100 22,100 2180 - Community Development 26,884 19,700 19,700 2250 - Parks Development 104,459 76,400 76,400 2930 - Drug Law Enforcement Grant 31,847 23,500 23,500 5400 - Water and Sewer 391,187 286,000 286,000 5500 - Recycling and Trash Collection 170,715 124,800 124,800 5550 - Airport 34,673 25,400 25,400 9700 - Shop 56,926 41,800 41,800 Total 7,522,600 5,500,000 3,800,000 ATTACHMENTS: 2023-445 SRF Employee Compensation Plan 2023, 2023-445 BA Employee Compensation Plan 2023 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 - Legislation Text File #: 2023-445 2023 Employee Compensation Appropriation Authority A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $3,800,000.00 TO FACILITATE THE CITY-WIDE 2022 EMPLOYEE COMPENSATION ADJUSTMENT WHEREAS, Mayor Jordan's proposed Employment Compensation Adjustment will cost the General Fund about $4,745,300.00 for 2023 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 $5,500,000.00 for 2023. 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 $3,800,000.00 to fund the city-wide 2023 Employee Compensation Adjustment. Page 1 Paul A. Becker Submitted By City of Fayetteville Staff Review Form 2023-445 Item ID 3/7/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/15/2023 CHIEF FINANCIAL OFFICER (110) Submitted Date Division / Department Action Recommendation: 2023 CITY-WIDE EMPLOYEE COMPENSATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $3,800,000 TO FACILITATE THE CITY- WIDE 2023 EMPLOYEE COMPENSATION ADJUSTMENT. ####. ###. ####-51 ##. ## Account Number Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget All Funds Fund Project Title $ 74,524,100.00 $ 8,254,667.14 66,269,432.86 $ 3,800,000.00 ,10,069,432.86 Previous Ordinance or Resolution # Approval Date: V20221130 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Non -Departmental (800) 2023 /Org2 Adjustment Number Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A BUDGET ADJUSTMENT IN THE AMOUNT OF $3,800,000 TO FACILITATE CITY-WIDE EMPLOYEE COMPENSATION ADJUSTMENTS FOR 2023. RESOLUTION/ORDINANCE COUNCIL DATE: 3/7/2023 ITEM ID#: 2023-445 Kevin Springer 217612023 72:07 PNI Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CH KD/POSTED: TOTAL 3,800,000 3,800,000 v.2023117 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5106.00 3,045,300 - EX Personnel Contingency - General 2100.410.4100-5106.00 135,000 - EX Personnel Contingency - General 2130.430.9130-5106.00 22,100 - EX Personnel Contingency - General 2180.642.4930-5106.00 19,700 - EX Personnel Contingency - General 2250.520.9250-5106.00 76,400 - EX Personnel Contingency - General 2930.200.2960-5106.00 23,500 - EX Personnel Contingency - General 5400.720.4000-5106.00 286,000 - EX Personnel Contingency - General 5500.750.5000-5106.00 124,800 - EX Personnel Contingency - General 5550.760.3940-5106.00 25,400 - EX Personnel Contingency - General 9700.770.1910-5106.00 41,800 - EX Personnel Contingency - General 1010.001.0001-4999.99 2100.410.4100-4999.99 - 3,045,300 - 135,000 RE RE Use Fund Balance Use Fund Balance - Current - Current 2130.430.9130-4999.99 - 22,100 RE Use Fund Balance - Current 2180.642.4930-4320.00 - 19,700 RE Grant Funding CDBG 2250.520.9250-4999.99 - 76,400 RE Use Fund Balance - Current 2930.200.2960-4999.99 - 23,500 RE Use Fund Balance - Current H:\Budget Adjustments\2023_Budget\CITY COUNCIL\03-07-2023\2023-445 BA Employee Compensation Plan 2023.xlsx 1 of 1