October 19, 2011

7/1Jan – June 2011 Revenue/Expense Reports to Departments 7/11Budget Committee to Complete 2011 and 2012 Revenue Projections 7/18-22Midyear Reviews of 2011 with Departments 7/20Board Worksession – Pre Budget Personnel and Benefits 8/1Revised for Midyear, Budget to Actual reports to Departments 8/3Revenues Preliminary 8/10Midyear adjustments to board for approval 8/11Capital Preliminary Meeting with Departments 8/22Department Budget Input Completed and Forms Turned Into Finance 8/31Board Worksession – Pre Budget Capital Projects 9/2-8 Open Meetings with departments line item review of 2012 Budget 9/21 Board Worksession Overview, General Fund (Admin, Public Works, Police, Court, Comm Dev) Park Fund, Stormwater Fund 10/5 Board Worksession Enterprise Funds (Water, Wastewater, Trash), 5 Yr Capital Plan, Capital Fund, Transportation Fund 10/19Board Worksession Finalize 2012 Budget

 Finalize 2012 Budget  Direction on Employee Benefits and Compensation  Final Input on other Budget or Capital Items  Direction on Tax Reduction

 Reductions Made to Achieve Tax Reduction  Review Employee Benefits and Compensation  2009 Salary Study  2011 In-House Benefit Review  Review Options on Employee Total Compensation  Employee Insurance Contributions  Insurance Plan Design Changes  Annual Wellness Incentive “Sick-Buy Back”  Personnel Requests Not Funded 2012

 Board of Aldermen Meeting – Nov 2nd Insurance Renewal Agreements for Approval  Board of Aldermen Meeting – Nov 16th Public Hearing Budget, First Reading Budget, and First Reading Sewer Rate  Employee Meetings– Nov 16 th -18th Open Enrollment and Budget Update  Board of Aldermen Meeting – Dec 14th Public Hearing Sewer Rate, Final Reading Budget, and Final Reading Sewer Rate

General, Park, Stormwater Key Changes Revenue Increases Sales Tax, Fines, Gross Rcpts 861,198 Revenue Decrease Prop Tax -500,000 Net Change to Revenue361,198 Expense Increases Fuel, Elec, Bond Pmt 1,077,688 Personnel Related Increases 1%, Hlth Ins, CA contract, Pur Specialist 407,234 Expense Reductions Personnel Related Rec clk, Bldg Dept, Addl Contr Ins -323,742 Expense Reductions Other Risk Ins, Cap -831,848 Net Change to Expense329,332

Change Salaries * (1% as presented) 9,087,3489,180,52493,176 FICA 695,182702,3107,128 Medical** 2,575,6622,772,120196,458 Dental 97,080137,98840,908 Vision 9,83810, Life 17,88417, Retirement (Police.5% Regular.2%) 832,659869,50536,846 Employee Assistance Program 4,0064, Long Term Disability 34,77534, Tuition Assistance 37,95030,500-7,450 Annual Wellness Benefit (estimate) 98, ,000 Employee Development 123,748118,865-4,883 Uniforms 66,15569,1382,983 Sick Leave Payout (retirement) 96, ,847 TOTAL 13,779,14513,949,671170,526

Coverage% OfferingWentzville Health100%Offered Dental100%Offered Vision90%Offered Life100%Offered Retirement*100%Offered Long Term Disability80%Offered Tuition Assistance80%Offered Annual Wellness Incentive30%Eliminated 1/1/12 Employee Development100%Offered Uniforms100%Offered Sick Leave Payout Retirement50%Offered *Three entities offer a retirement program other than LAGERS

 Purpose  To assess the City’s current compensation system and update the system to meet anticipated 2010 Market levels  Review and Update of Job Descriptions  Review Classification Plan  Review Benefits  Provide Recommendations Based on Market

 Annual Salary Increase  Recommended = 2.5%  Budgeted = 1.5%  Internal Equity Adjustments  Recommended = 2.5% cap at midpoint  Budgeted = 0%  Adjustments to Minimum  Recommended – Adjust Salaries to Range Minimum  Budgeted – Adjustments to Minimum (8 people)

 Address Benefits Exceeding Market  Recommendation  Begin Employee Contributions for Employee Only and Family Coverage  Implemented  1/1/11 $10 Contribution for Family Health Coverage  Address Benefits Below Market  Recommendation  Begin Providing Long Term Disability Insurance  Implemented  1/1/11 Began Providing Long Term Disability Insurance

 Purpose  To assess and compare the City’s current benefit programs  Review Insurance Plan Contribution Levels Only  Review Leave Programs  Review Other Benefits

 Insurance  Set Target to Increase Contributions for Health/Dental  Review Alternatives to Reduce Renewal Increases  Leave  Review all Leave Programs 2012  Assess Sick Leave Payouts  PTO (Paid Time Off) Program  Other Benefits  Reduced Tuition to $2,500

HEALTHDENTAL Base Plan # Particip antsYear 1 Annual RevenueYear 2 Annual RevenueYear 3 Annual Revenue Single 26$9.24$2,882.88$18.48$5,765.76$28.00$8, EE/Spouse 35$44.22$18,572.40$88.44$37,144.80$134.00$56, EE/Child 11$42.57$5,619.24$85.14$11,238.48$129.00$17, FAM 93$67.32$75,129.12$134.64$150,258.24$204.00$227, TOTAL ANNUAL BASE 165 $102, $204, $309, Enhanced Plan Single 1$60.00$720.00$60.00$720.00$60.00$ EE/Spouse 2$130.00$3,120.00$130.00$3,120.00$160.00$3, EE/Child 0$110.00$0.00$110.00$0.00$164.00$0.00 FAM 7$160.00$13,440.00$166.98$14,026.32$253.00$21, TOTAL ANNUAL ENHANCED 10 $17, $17, $25, TOTAL ANNUAL 175 $119, $222, $335, Base Plan # Participant sYear 1 Annual RevenueYear 2 Annual RevenueYear 3 Annual Revenue Single 28$2.31$776.16$4.62$1,552.32$7.00$2, EE/Spouse 37$9.24$4,102.56$18.48$8,205.12$28.00$12, EE/Child 10$9.57$1,148.40$19.14$2,296.80$29.00$3, FAM 100$13.86$16,632.00$27.72$33,264.00$42.00$50, TOTAL ANNUAL 175 $22, $45, $68, Annual Impact to Employees: Single: $138 Emp+Spouse: $521 Emp+Child: $505 Family: $853

IMPACT EMPLOYEES(100) WITH FAMILY COVERAGE Corrections Officer Entry Level Maint Crew Leader Patrol Officer Police LT Annual Salary $25,884$28,384$40,682$48,070$65,880 Less Health -687 Less Dental -166 Flat Increase +853 Change $0 % Change 00000

IMPACT EMPLOYEES (26) WITH SINGLE COVERAGE Corrections Officer Entry Level Maint Crew Leader Patrol Officer Police LT Annual Salary $25,884$28,384$40,682$48,070$65,880 Less Health -111 Less Dental -28 Flat Increase +853 Change $714 % Change 2.68%2.45%1.72%1.46%1.07%

IMPACT EMPLOYEES(100) WITH FAMILY COVERAGE Correction s Officer Grade 5 Entry Level Maint Grade 6 Crew Leader Grade 10 Patrol Officer Grade 12 Police LT Grade 16 Annual Salary $25,884$28,384$40,682$48,070$65,880 Less Health -687 Less Dental -166 Salary Increase* Change ($157)($101)($285)($197)($312) % Change -0.61%-0.36%-0.71%-0.41%-0.48%

IMPACT EMPLOYEES (26) WITH SINGLE COVERAGE Corrections Officer Grade 5 Entry Level Maint Grade 6 Crew Leader Grade 10 Patrol Officer Grade 12 Police LT Grade 16 Annual Salary $25,884$28,384$40,682$48,070$65,880 Less Health -111 Less Dental -28 Salary Increase Change $557$613$429$517$402 % Change 2.11% 1.04%1.06%0.61%

 Renewal Decreased from 25% Increase to 5% Increase – Not FINAL  Increasing Stop Loss Level from $55,000-75,000  Mandatory Mail In Prescription Plan 90 day Discount  Remove Coverage for Treatment of Infertility (July 2012 Implementation)  Decrease Coverage for Out-of-Network Dental  Favorable Claim Trend Previous Quarter  Spousal Affidavit – Gather Data 2012 and Evaluate Impact for 2013

 97 Employees Participated in 2010  Payments Ranged from $300-$2,100  This Program was eliminated in the 2012 Preliminary Budget  This Program Is Included in the Local 148 Current Agreement

DivisionTitleFrozen/ New Head Count Increase PoliceMajorNew0 PoliceCpt. Field OperationsNew0 PoliceCpt. Support ServicesNew0 PoliceSgt. To Lt. of InvestigationsNew0 PolicePatrol OfficerNew1 FinanceAdministrative AssistantNew1 FinanceSecretary INew1 ITComputer Systems AdministratorFrozen1 CDTemporary P/T Secretary to F/TFrozen1 StormwaterStormwater InternFrozen.5 StreetMaintenance Worker IFrozen1 StreetMaintenance Worker I P/T (2)Frozen1 EngineeringInternFrozen.5 CourtClerk I – P/T Increase hours (300)New.25 PW AdminSecretary I to Administrative AssistantNew0

MARKETWENTZVILLE YearRecommendedImplemented %1.5% %0% %-2%1%  Below Market  Reorganizations Not Reviewed Citywide  Police Records  Community Development  Public Works  Vehicle Maintenance  Parks & Recreation  Information Technology 2012 Budget 1% $109,911

MARKET INSURANCE CONTRIBUTIONS WENTZVILLE CONTRIBUTIONS PlanHealthDental Employee Only$28$7 Emp+Spouse$134$28 Emp+Child$129$29 Family$204$42  1/1/11 Introduced First Contribution for Family Health Coverage $10  1/1/12 Recommended an increase in Health & Dental Contributions to move toward market levels 2012 Budget 50% Market Contributions Revenue = $203,202 Plan Renewal Increase Expense = $219,384 Based on Anticipated Renewal Rates

 Compensation Study ,000  Implement Minimal Contribution Increase +128,802  HEALTH $20 Family $10 Single DENTAL $10 Family $5 Single  No Change 2011 Base Salary 0% Increase -$109,911  Eliminate Annual Wellness Benefit as Presented $0  No Change from 2011 Personnel Requests $0  $500,000 Tax Reduction +$500,000 (revenue increase)

 Postpone Changes to Total Compensation  Complete Compensation Study +$40,000  Review and Begin Implementing Results Mid-Year 2012  Insurance Contributions  No Change from ,922  Implement as Presented in Preliminary Budget (50% average) $0  Implement Year 1 of 3 Year Plan for contributions +71,996  Implement HEALTH $20 Family $10 Single DENTAL $10 Family $5 Single +$128,802  Salary  No Change from $109,911  Implement as Presented in Preliminary Budget 1% Across the board $0  Flat Salary Increase to Cover Increased Family Contributions +62,683  Varying % Salary Increase Impact 3 Year Plan +17,821  Annual Wellness Benefit  No Change from ,300  Eliminate as Presented in Preliminary Budget $0  Personnel Requests  No Change from 2011 $0  Consider Requests Based on Need and Service Level Desired $ Undetermined  Property Tax Reduction  No Change from $500,000 (revenue increase)  Postpone Reduction Until Mid Year $500,000 (revenue increase)  Reduce Amount of Desired Tax Reduction $Undetermined *$ Change from Preliminary 2012 Budget

ActualBudgetedProposed Beginning Fund Balance 7,597,1218,291,1458,276,724 Revenues 15,450,53214,793,80714,964,965 Transfer from Capital 245,434419,937698,420 Total Funds Available 23,293,08723,504,88923,940,109 Operating Expenditures 14,287,43114,762,47714,758,810 Capital Expenditures 301,129461,220703,925 Transfers to Other Funds 413,3824,468115,943 Total Expenses 15,001,94215,228,16515,578,678 Ending Fund Balance 8,291,1458,276,7248,361,431 Less: Restricted Operating Cash 4,110,7804,210,2624,264,712 Less: Reserve for Capital 200,000300,000100,000 Less: Reserve for Rate Less: Non-Spendible 685,529372,634 Less: Restricted Other Unrestricted Fund Balance 3,294,8363,393,8273,624,084 Change in Fund Balance 694,024(14,421)84,707

 Finalize 2012 Budget  Direction on Employee Benefits and Compensation  Final Input on other Budget or Capital Items  Direction on Tax Reduction