CC Minutes 07/12/2011 Budget Workshop

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=f OVERALL PERSONNEL AND ORGANIZATIONAL ISSUES CASSELBERRY Pay and Benefits There is no salary increase budgeted for bargaining unit or non -bargaining unit employees for FY 2012. The City has three bargaining units and one may still be in negotiations entering FY 2012. As such, there are no pay recommendations relating to any of these bargaining units or any personnel at this time. Total payroll included in the FY 2012 Proposed Budget is $15,074,412, reflecting a 2.1% decrease from the FY 2011 Adopted Budget of $15,398,683. Staff reorganization contributed to the reduction of payroll and benefit costs. Other factors include lower workers compensation insurance rates and legislative changes to the Florida Retirement System. Pension costs overall are down about 6.5% over 2011. The decrease was driven by deeply reduced City contribution rates for the Florida Retirement System as mandated by the State Legislature partly caused by new withholding requirements from employees. FRS employees must now contribute 3% of salaries into the FRS. It is anticipated that the employer rate decrease will be a one-year reduction and that FRS rates will trend back up next year, depending on the wishes of the Florida Legislature. The rate for General employees was reduced from 10.77% in FY 2011 to 4.91% in FY 2012. Special Risk contribution rates dropped from 23.25% to 14.10%. The Police and Fire Pension Plan must follow actuarially calculated rates of contribution. It has increased from 21.8% to 23.8% of salary as the plan is compensating for market losses and has updated the longevity table from which it bases future benefit estimates. The General Employee Pension is a defined contribution plan with a fixed rate of contribution of 10% paid entirely by the City for employees participating in the Plan. External forces do not affect the General Employee Plan contribution. The proposed budget includes the following amounts for City pension expenses: Police and Fire Pension General Employees Pension Florida Retirement System (FRS) Proposed FY 2012 # of Employees $939,055 77 $457,279 113 $211,898 41 The City's benefit consultants have advised that health premium increases should be expected for FY 2012. An 8% increase has been factored in the proposed FY12 budget, adding $92,664 to the City-wide budget for personal services. Staffing No major staff reductions were required to balance FY 2012 following several years of downsizing. Authorized personnel decreased 9.3% for FY08; 3.6% for FY09; 2.9%; and 5.9% for FY11. From FY 2007 to FY 2011 a total of 58 full and part-time positions representing 21.7% of the workforce have been deleted. Reorganization during FY 2011 led to the creation of three new positions in Public Works to form a sidewalk maintenance crew. For FY12 requested staffing has increased one full-time position as a part-time Inventory Clerk position is proposed to be made full time. A full personnel schedule is shown on page C-21 of the Summary pages within the introductory section of the Proposed Budget and a multi-year comparison can be found in Appendix D for your review. Below is a comparative schedule by department and division of the proposed staffing changes: A-13