FY Budget April 24, 2014 Personnel and Debt Prepared by: Dana P. Hlavac, Interim Budget Manager and David Felix, Finance Manager

Agenda Personnel ▫Impact of Salary Adjustments ▫Impact of Compression “Fix” ▫ASRS Impacts ▫PSRS Impacts Debt Outlook

Salary History Last employee raise was in FY2009 Annual adjustments have been made to negate the impacts of pension increases on employees.

Current Salaries Personnel budget for FY2014 is $26,741,763 Represent approximately 36% of total budget expenditures Breakdown: ▫Direct Salaries$18,449,987 ▫Burden & Benefits$ 8,291,776

Current Personnel Recommendation 2% across the board raise Additional compression adjustment for certain targeted positions

Financial Impact Impact to all funds combined is approximately $216,000 per 1% Impact to General Fund is approximately $181,000 per 1%

Compression Compression occurs when a new hire is earning the same amount as an employee with more than one year of service Penalizes years of service

Example of Compression Years of ServiceHourly Pay Rate Difference from Year to Year 1 $ % 3 $ % 4 $ % 5 $ % 6 $ % 7 $ % 8 $ %

Compression Analysis 148 positions were reviewed. 122 were identified as within a classification and service range potentially impacted by compression. Further review indicated 40 individuals in Fire and Police that are significantly impacted by compression. Reviewing options to address compression. Goal is to keep impact below $75,000

ASRS contribution ASRS contribution rate is increasing by 0.04% Estimated increase due to rate increase is $400

PSPRS contribution PSPRS contribution rate are increasing: ▫Police31.25% to 31.96% ▫Fire26.10% to 28.50% Estimated contributions for FY15 (excluding any raises or adjustments): ▫Police$1,389,000 ▫Fire $ 800,600 An increase of approximately $99,000 from FY14

Personnel Expense Summary

Debt The City finances certain capital projects, depending on a variety of factors i.e. type of project, project cost, expected life Financing term matches the expected life of the equipment, usually five years for equipment and for land and buildings. Two types of debt: ▫Bonds (long term) ▫Lease purchase (short term)

Debt Service By Fund (P&I)

Outstanding Debt

Available Funds Summary

Closing Next presentation will be on proposed capital projects Tentative budget book on track to be distributed by Friday, May 23, 2014