Fort Walton Beach Council agenda — 05-20-08 special agenda - budget policy issues — reading text

- - bonesbones capitalcapital spending.spending. 4.4. TheThe unreserved unreserved / / undesignatedundesignated fundfund balancebalance inin thethe GeneralGeneral FundFund isis anticipatedanticipated toto bebe$ $ 6.6. 088M088M onon September September 30,30, 2008.2008. AssumingAssuming anan 8% 8% operatingoperating reductionreduction inin thethe FYFY 20082008- - 0909 budget,budget, thethe CityCity $ $ 694K694K ofof fundfund balancebalance andand continuecontinue toto meet meet thethe FLOCFLOC benchmarkbenchmark oror useuse couldcould useuse $ $ 314K314K ofof fundfund balancebalance andand continuecontinue toto meetmeet thethe auditorsauditors benchmark.benchmark. Recommendation Recommendation 1.1. MaintainMaintain unreservedunreserved / / undesignatedundesignated GeneralGeneral FundFund reservesreserves atat aa minimum minimum ofof 30%30% ofof totaltotal annualannual expenditures.expenditures. 2.2. AdjustAdjust unreserved unreserved / / designated designated fundfund balancesbalances andand createcreate newnew designationsdesignations asas neededneeded duringduring thethe annualannual auditaudit process.process. 1717 ofof 3434 FY 2008 -09 Budget Policy Meeting x, d 1 i9 OT S4 FY 2008 -09 Budget Policy Meeting COST -OF- LIVING ADJUSTMENT STRATEGIC PLAN GOAL — Policy Decision Should there be an annual cost of living increase effective October 1, 2008? Background 1. Employees have traditionally received a cost of living ( COLA) adjustment October 1 each year. FY 2003 -04 FY 2004 -05 FY 2005 -06 FY 2006 -07 FY 2007 -08 General 1. 85% 2. 00% 2. 25% 2. 99% 1. 40% Police 1. 85% 5. 50% 2. 25% 9. 00% 1. 40% Fire 1. 85% 8. 50% 4. 00% 2. 99% 3. 38% Notes:Notes: InIn FYFY 20072007 - - 0808 thethe collectivecollective bargainingbargaining agreement agreement providedprovided aa 3.3. 38%38% COLA;COLA; however,however, thethe averageaverage adjustment adjustment waswas approximatelyapproximately aa totaltotal ofof 9.9. 3%3% duedue toto thethe transitiontransition fromfrom aa 1717- - stepstep toto 9-9- stepstep plan.plan. InIn FYFY 20052005 - - 0606 inin additionaddition toto thethe COLA,COLA, generalgeneral employeesemployees receivedreceived aa 1.1. 0% 0% adjustmentadjustment asas aa resultresult ofof thethe comprehensivecomprehensive paypay planplan andand policepolice officersofficers receivedreceived aa 5.5. 3%3% adjustmentadjustment toto remainremain competitive competitive withwith thethe Sheriff.Sheriff. InIn FYFY 20032003 - - 0404 thethe collective collective bargainingbargaining agreementagreement providedprovided aa 1.1. 85% 85% COLA;COLA; however,however, thethe average average adjustment adjustment waswas approximately approximately aa totaltotal ofof 9.9. 15% 15% duedue toto thethe transitiontransition fromfrom aa 3%3% toto aa 3.3. 5% 5% stepstep plan.plan. 2.2. TheThe purposepurpose ofof thethe COLACOLA isis toto ensureensure wageswages keepkeep pacepace withwith inflation,inflation, exclusiveexclusive ofof anyany additionaladditional rewardreward forfor performance performance onon anan employee'employee' ss anniversaryanniversary date.date. 3.3. InIn additionaddition toto aa costcost ofof livingliving increaseincrease everyevery OctoberOctober 1,1, employeesemployees areare eligibleeligible forfor aa performanceperformance increaseincrease onon theirtheir anniversaryanniversary date.date. GeneralGeneral employeesemployees receivereceive 33%,%, policepolice officersofficers 3.3. 55%,%, andand firefightersfirefighters 7.7. 0% 0% contingentcontingent uponupon aa satisfactorysatisfactory performanceperformance evaluation.evaluation. DepartmentDepartment directors,directors, supervisors,supervisors, andand professionalprofessional staffstaff areare eligibleeligible forfor upup toto 3.3. 5%5% depending depending onon theirtheir evaluationevaluation score.score. DiscussionDiscussion 1.1. AsAs aa governmentgovernment entity,entity, thethe largestlargest sourcesource ofof expendituresexpenditures isis personnelpersonnel - - relatedrelated withwith regardregard toto serviceservice deliverydelivery programs:programs: policepolice andand firefire protection,protection, parksparks maintenance,maintenance, infrastructureinfrastructure maintenance,maintenance, trashtrash collection,collection, andand waterwater / / sewersewer services.services. TheThe mostmost importantimportant elementelement ofof serviceservice deliverydelivery isis thethe peoplepeople whowho provideprovide thethe service,service, asas evidenced evidenced byby Council'Council' ss commitmentcommitment toto providingproviding exemplaryexemplary serviceservice throughthrough recruitmentrecruitment andand retentionretention ofof qualifiedqualified andand experiencedexperienced personnel.personnel. 2.2. Surrounding Surrounding jurisdictionsjurisdictions havehave notnot yetyet finalizedfinalized howhow muchmuch ofof aa COLACOLA toto offeroffer inin FYFY 20082008 - - 09.09. 3.3. TheThe ConsumerConsumer PricePrice IndexIndex forfor AprilApril 20082008 waswas 3.3. 9%9% higherhigher thanthan aa yearyear ago.ago. PolicyPolicy ImpactImpact 1.1. TheThe estimatedestimated costcost ofof aa COLACOLA adjustmentadjustment effectiveeffective October October 1,1, 20082008 isis basedbased onon 20072007 - - 0808 budgetedbudgeted wageswages ( ( excludingexcluding firefire union),union), notnot takingtaking intointo accountaccount anyany possible possible position position eliminations.eliminations. a.a. 0.0. 50% 50% COLACOLA forfor allall employees employees ( ( excl.excl. firefire union)union) —$ —$ 62K.62K. b.b. 0.0. 75% 75% COLACOLA forfor allall employees employees ( ( excl.excl. firefire union)union) —$ —$ 93K.93K. c.c. 1.1. 00% 00% COLACOLA forfor allall employeesemployees ( ( excl.excl. firefire union)union) —$ —$ 125K.125K. d.d. 1.1. 50% 50% COLACOLA forfor allall employeesemployees ( ( excl.excl. firefire union)union) —$ —$ 187K.187K. e.e. 2.2. 00% 00% COLACOLA forfor allall employeesemployees ( ( excl.excl. firefire union)union) —$ —$ 249K.249K. 2.2. FireFire unionunion membersmembers willwill bebe compensatedcompensated perper thethe collectivecollective bargainingbargaining agreement.agreement. 3.3. OfferOffer aa COLACOLA inin FYFY 20082008 - - 09,09, butbut notnot aa stepstep / / meritmerit anniversary anniversary adjustmentadjustment ( ( exceptexcept firefire union).union). RecommendationRecommendation BudgetBudget aa 2.2. 00% 00% costcost - - of-of- livingliving adjustmentadjustment forfor allall employeesemployees ( ( excluding excluding firefire union)union) effectiveeffective OctoberOctober 1,1, 2008,2008, withwith thethe understanding understanding thisthis maymay bebe reducedreduced oror eliminatedeliminated depending depending onon thethe reductionreduction inin adad valoremvalorem revenues.revenues. 1919 ofof 3434 FY 2008 -09 Budget Policy Meeting