Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
General Fund, Compensation & Benefits
1) Engaging the Public
2) Follow-ups from prior meetings
3) Update on Certified Tax Roll
4) General Fund Overview
5) Base Budget
6) Infrastructure Rehabilitation
7) Community Events & Parks Fees (Non-Resident)
8) Summary – FY19 Recurring & One-Time Additions
9) Compensation & Benefits
10) Next Steps
Ensuring Sugar Land still feels like “home sweet home” is a
shared responsibility of the City and residents
◦ Actively implementing innovative public engagement
methods to encourage “two-way” as part of budget process
Multiple avenues for public to engage and gather information
Public Budget Workshops
Posts & videos
◦ City website
◦ Facebook page
Follow-up Items from Prior Meetings
Staff is currently evaluating requests from Council
◦ Staff continues to track questions
Council website contains
Running list of questions
Staff’s response to questions
Parking Lot Items
◦ Will provide Council an update on outstanding items at the
August 7th or August 9th meeting
Flat tax rate equivalent to Effective Tax Rate + 2.63%
◦ Residential revaluation of 3.6%
◦ Commercial revaluation of 0.8%
Staff recommendation to maintain flat tax rate
◦ Generates ~$300K less revenue in General Fund
Ready to discuss this morning – see strikethroughs
◦ Generates ~$225K less revenue in Debt Service (i.e. CIP)
Will complete evaluation and prepare information for
discussion on August 7
General Fund Overview – As Filed
Primary operating fund of the City
◦ Accounts for everything not required to be accounted for in
another fund type (Special Revenue, Internal Service, Debt
Service, Capital Projects, etc.)
Includes traditional governmental services
Police
Fire
Public Works
Parks, etc.
Emphasizes Strengthened Resilience & Innovative Constraint
Revenues & Expenditures are divided into two categories
◦ Operating & Non-Operating
Operating Revenues
Traditional Revenue Sources
Taxes
Charges for Services, etc.
Operating Expenditures
Expenditures tied to a department
Salaries
Contractual services, etc.
Non-Operating/Non-Departmental
◦ Non-Operating Revenues
Transfers In
Enterprise Funds overhead reimbursement
◦ Non-Departmental
Transfers out
Expenses not tied directly to a department
Insurance & deductibles
Rebates & assignments, etc.
General Fund is one of the simplest ever presented
◦ Focus is on the basics
Maintaining service levels
Base adjustments (Primarily contractual increases)
Continued reinvestment in infrastructure
Compensation to support a champion workforce
◦ No new positions
◦ No new programs
Much of the information in this presentation may seem
familiar as it has been presented in some form previously to
Council
◦ June 19th Workshops
Base Budget & Budget Cuts
Special Events Project & Policy Framework
◦ July 17th Budget Filing
Base adjustments, replacement of cuts, one-time
additions, compensation
◦ Multiple FYIs on Budget-Related Topics
Council’s opportunity to ask additional follow-up questions
General Fund36%
Debt Service13%
Enterprise Utility17%
Airport6% Solid Waste
3%
Corporations6%
Other Funds8%
Capital Projects11%
Description In Millions ($)
Revenues $ 90.35
Expenditures 92.37
Net Change 2.02
Ending Fund Balance 22.22
FB Policy Requirement 20.18
Over Policy $ 2.04
Property Tax
32%
Sales Tax
41%
Franchise Taxes
7%
Permits
4%
User Fees
4%
MC Fines
2%Other
2%
Transfers In
8%
General
Government
14%
Finance
5%
Public Works
13%
Parks
5%
Planning, Permits,
Engineering
6%ENS
6%
Police & Dispatch
26%
Fire/EMS
18%
Non-Operating *
7%
*Includes transfers to other funds
Personnel
75.5%
Supplies
5.5%
Prof. Services
8.7%
Repairs & Maint
7.6%
Purchased Services
2.5%
Capital / Other
0.2%
Millions ($) FY19 FY20 FY21 FY22 FY23
Revenues $90.34 $92.91 $95.37 $97.90 $100.29
Expenditures 92.36 93.36 95.35 97.56 99.66
Net Income -2.02 -0.45 0.01 0.34 0.63
Ending FB % 28% 26% 26% 26% 26%
Over Policy $2.04 $0.92 $0.53 $0.45 $0.67
General Fund Base Budget
Base Budget is the budget that supports the same level of
service as the prior year
Base adjustments are adjustments to the base that are
required to deliver the same level of service
◦ Primarily contractual increases
Large increase this year:
Software & technology maintenance costs
Landscaping
Janitorial
Employee Compensation
◦ Expenditures in the General Fund are largely driven by
personnel expenses, at 75.5% of expenditures
Merit Pool included at 3% of budgeted salaries
◦ City does not give cost of living adjustments
◦ Designed to reward employees for performance
Human Resources to cover compensation and benefits later
in the presentation
Base Budget Adjustments review with Council
◦ July 17th Budget Filing
◦ July 27th Detailed FYI provided
Listed all departmental base adjusted and descriptions
Budget Amount
Beginning Base Budget $88,284,019
Base Adjustments 1,144,148
3% Merit Pool 1,162,857
FY19 Base Budget $90,591,024
% Increase 2.6%
General Fund Rehabilitation Funding
Infrastructure Rehabilitation Funding◦ Funded with more reliable revenue streams◦ Rehab funding transitioned to the General Fund
Rehabilitation builds over 5 years◦ Rehabilitation (Rehab) vs. Reconstruction (Recon)
Rehab (cash): Maintains services levels
Recon (debt): Extend useful life
Maintained debt qualified reconstruction work increases in CIP to reduce impact during transition
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2019 2020 2021 2022 2023
Millions
Infrastructure Rehabilitation
Traffic
Sidewalk & Trail
Pavement
Drainage
ROW
Street Lights
Parks
Facilities
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY17Planned
FY17Revised
FY18 FY19 FY20 FY21 FY22
Millions
Original Transition Plan with 1x Sales Tax in FY19
GF Rehab Major CIP Rehab 1x ST
Recurring funding is included in Base Budget
Infrastructure rehabilitation
◦ Plan is to grow rehabilitation funding in operating budgets
Reinvestment & maintenance of existing assets
Planned increase of ~$300,000 per year
¼ cent tax rate shift from debt service to operations
Additional one-time funding per FMPS direction
$600,000 from one-time sales tax received in FY18
Current funding allows investment in highest priorities
◦ Asset management key in defining future funding priorities
Facilities projects
◦ Often identified throughout the year
FY19 Examples:
Automation & temperature control systems
Replacement of exterior ground lights at City Hall
Replacement of insulation to HVAC chill water supply
One-time funding included for facilities assessment
Parks Projects
◦ Often identified throughout the year
◦ FY19 Examples:
City Park Sports Field Light Replacement (1 Field)
Street Light Replacement
◦ Replaces cobra-head lights with decorative lighting
Centerpoint changing out to LED
Saves General Fund dollars in the future
Improves lighting on roadways for traffic safety
Current lighting is blocked by the large trees
FY19 Examples:
Lexington from Oyster Creek to Dulles
ROW Plant And Irrigation Projects
◦ Replacement of damaged plant or irrigation materials
FY19 Examples:
Replacement of the rose bushes and older plant
material on HWY90A from SH6 to University
Localized Drainage Improvement Projects
◦ Replacement and repair of drainage system
FY19 Examples:
Lining of multiple outfalls within LID 2 ditches
LID 2 construction projects identified numerous
outfalls the City needing to be lined
Pavement Rehabilitation
◦ Removal and replacement small sections of pavement
FY19 Examples:
Replacement based on pavement assessment &
requests from residents
Sidewalk and Trail Rehabilitation
◦ Replacement and grinding of sidewalks
FY19 Examples:
Continue repairs based on annual assessment of the
850 miles of sidewalks
Repairs are prioritized
1) High pedestrian traffic (schools & trails)
2) Resident requests
Traffic Evaluation and Safety Improvements
◦ Improvements typically at intersections identified through
traffic analysis, reported concerns, or studies
FY19 Examples:
Continue with repairs and upgrades to the system
One-time funding for the ITS Master Plan Update
Type Recurring One Time
Facilities $ 288,423 $ 300,000
Parks 102,500
Street Lights 50,000
ROW Planting 75,000
Drainage 153,750
Pavement 678,038 100,000
Sidewalks & Trails 284,855 100,000
Traffic 134,500 100,000
Total Funding $ 1,767,066 $ 600,000
Parks Fees & Events
Fees set by Ordinance
Standard CPI adjustment for majority of fees
Increase non-resident membership fees from $58 to $155
◦ Recognizes direct costs associated with operating the
facilities
◦ Recommend $155 for each center for consistency and
sensitivity for seniors who may be on a fixed income
◦ Will be reviewed with Finance Audit Committee
Fees set by Ordinance
Add a new fee for non-resident league participants
◦ Fee per season per player
◦ Recognizes direct costs associated with operating the
park/sport facilities
◦ Recommend phased approach to fees
Developing recommendation - Mid-year adjustment
◦ Reviews with PARCS Board and Finance Audit Committee
◦ Discussions with Leagues
Fees set by Department
Non-Resident participants will pay direct costs for recreation
and senior center events (Senior Gala, Sugar Gala, Trips)
Non-Resident participants will pay direct costs for attendance
to community special events primarily funded through
general fund with the exception of Memorial Day
General Fund Summary – FY19 Recurring &
One-Time Additions
Recommended for Funding Amount
Fort Bend Transit (TREK) $70,000
City calendar 50,000
State of the City event 25,000
Street sweeping 85,000
Mulch/fertilizer in beds 69,000
Recurring funding for FY19
$ 70,000
$ 299,000
Description Amount
Special Events (from FY18 reductions) 50,000
Asset Management Training 5,000
Redistricting & Election 22,800
Hazard Mitigation Plan 100,000
Organizational Assessment- PS Dispatch 60,000
Fire Physical Ability Test Validation 90,000
Total Departmental Funding- One Time $ 327,800
Compensation & Benefits
As adopted by Council, May 2013
Recognize the value of our employees
Pay on a competitive basis
Fair and equitable compensation systems
Recognize performance with merit pay
Provide competitive benefits programs
Evaluate total compensation by applying “benefits burden” test
Salary Structures
Pay For Performance (Merit Pool)
Texas Municipal Retirement System
Group Health Benefits
Benefits Burden
Police & Fire
The City’s compensation philosophy states starting salaries for
Police / Fire should be 75th percentile of the benchmark cities
◦ 3.85% increase to the starting salary for Police; and
◦ 0.32% increase to the starting salary for Fire
Salary structures will move accordingly; no “across-the-board”
adjustments to salaries
Only salaries falling below the minimum of new range adjusted
Effective October 1 January 1
Non-Exempt, Exempt & Management/Elected Officials
The general salary structures are moved annually based on CPI
CPI for February was 2.6%
Salary structures will move accordingly
There are no “across-the-board” adjustments to salaries
Only salaries falling below the minimum of the new salary range
will be adjusted to the minimum
Effective October 1 January 1
-1%
0%
1%
2%
3%
4%
5%
6%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Recurring Merit One Time Merit Feb CPI- Houston June CPI- Houston
Contribution Rate for 2019: 14.93% ( from 15.27%)
Funded Ratio: 87.3% ( from 86.0%)
Opted out of Social Security System for all pension-eligible
employees in 1980
Other than TMRS, the only retirement savings option available
by pre-tax deduction is participation in the 457 Deferred
Compensation program (no matching contribution from the City)
City Provided
Medical*
◦ KelseyCare HMO
◦ High-Deductible Health Plan
w/HSA
Dental*
◦ DHMO
◦ DPPO
Flexible Spending Account (FSA)
Administration
Employee Assistance Program
(EAP)
CariLoop (Caregiver Assistance)
Basic Life & Accidental
Death/Dismemberment (AD&D)
Long-Term Disability (LTD)
Optional Benefits**
• Vision
• Cancer Indemnity
• Accident Indemnity
• Short-Term Disability
• Supplemental and
Dependent Life & AD&D
• Legal Shield
• Flexible Spending Account
Medical:
City will remain self-funded for medical claims
Year 3 of a 5 year contract with Cigna - TPA services for medical plan
Anticipating increases in Medical, Pharmacy & Stop Loss
Dental & Voluntary Vision:
2018 was Year 2 of 2-Year Rate Guarantee with Cigna Healthcare
Cigna has confirmed that we will have no rate changes for 2019 dental plans
Vision plan costs will increase 12.6% (or $0.73 to $2.31 per month, depending on tier)
Life & Disability:
RFP in process – received 6 responses and they are under
review
Stop Loss:
Contract will come to Council in November for Plan Year 2019;
however, with our experience thus far, we are anticipating
change in this area
$7.5$8.2
$9.9 $9.9 $10.0$10.8
$13.2
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2012 2013 2014 2015 2016 2017 2018 ANN
Th
ou
sa
nd
s
Note: 2018 ANN = 1/1/18 to 5/31/18
National Average = Segal Health Care Cost Survey – Combined Medical and Pharmacy Trends
Plan Year Total Claims %Δ
5 Year
Average
5 Year
National
Average
2012 $7,527 n/a
2013 $8,217 9.2%
7.8%
Trend
Average
8.3%
Trend
Average
2014 $9,928 20.8%
2015 $9,912 -0.2%
2016 $10,028 1.2%
2017 $10,813 7.8%
2018 ANN $13,249 22.5%
Savings Compared to FI
2012 $915,760
2013 $900,191
2014 $150,954
2015 $311,474
2016 $270,352
2017 $312,399
2018 YTD $153,256
Savings estimates
projected based on an
annual Fully Insured
Premium amount
2018 YTD utilizes a
monthly premium
amount accrued over
the last 6 months, then
compared to the last 6
months of cost.
7% increase to Benefits Fund to accommodate raising claims
costs
◦ Employee & City Increase
Anticipate contributions and plan design changes
◦ Working with Employee Benefits Committee now
30.68%
37.4%
33.0%34.9%
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
Sugar Land FY19
Estimate
State & Local Govt Private Sector
100+
Private Sector
500+
Next Steps
Are there follow-up questions that Council needs answered?
Review of questions requiring follow-up
Date Topic
August 7Regular Meeting
Follow up on outstanding questions
August 9Budget Workshop
Property Tax & Debt Service FundRecord vote to publish Proposed Tax Rate Notice and set public hearing dates
August 16Budget Workshop
Enterprise and Other Funds