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Home My WebLink AboutCity Council-Agenda Packets-Worksession-6/16/2016 City of Colleyville Page 1 City of Colleyville City Council Worksession Agenda City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Thursday, June 16, 2016 6:00 p.m. Executive Conference Room Third Floor City Hall 1. CALL TO ORDER 2. PRESENTATION AND DISCUSSION 2a Presentation and discussion of the annual budget 2b Overview of compensation and benefits 3. ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Monday, June 13, 2016 by 5:00 p.m. Amy Shelley, TRMC City Secretary A quorum of any Colleyville board, commission, or committee may be present at this meeting. Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise the City Secretary at least 48 hours in advance at 817.503.1133, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 City of Colleyville Colleyville City Council Worksession Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2a Agenda Date 06/16/2016 Number Type Presentation and Discussion Department City Manager Title Presentation and discussion of the annual budget Strategy Map Connection F3- Forecast needs and plan for the future, balancing priorities with resources F4- Adhere to the City’s financial and budgetary policies Explanation This agenda item provides for a discussion of the annual budget. Staff will present the attached presentation and answer any questions the City Council may have. Attachments 1.Budget Worksession Presentation Budget Process Overview City Council Worksession June 16, 2016 Presentation Overview Budget background information Budget process and components General financial outlook Presentation Overview Budget background information Budget process and components General financial outlook Background: Major Funds Operating Funds: an annual expenditure budget is adopted for these funds in a single ordinance •General Fund •Utility Fund •Drainage Fund •Debt Service Fund Funds with an annually adopted budget that have other approval and governing requirements: •Colleyville Crime Control and Prevention District (CCCPD) •Colleyville Economic Development Corporation (CEDC) Funds without an annually adopted budget, that serve as internal savings accounts or maintain funds for multi-year projects: •Capital Projects Fund (only revenue source is transfers from the General Fund) •Vehicle & Equipment Replacement Fund (only revenue source is transfers from the General Fund) Funds restricted for specific purposes and do not have an annually adopted budget: •Tax Increment Financing (TIF) District •Many other smaller funds listed (with $ balances) later in this presentation Background: Fund Balance •Fund balance = savings account for each fund •Financial policies: minimum of 90 days of the current year’s budgeted expenditures •For handling emergencies •Preserve the City’s credit ratings •Fund balance above the 90 day minimum may be used for one-time or capital expenditures FY 2016 operating fund minimums •General Fund: $5,912,228 •Utility Fund:$3,917,185 •Drainage Fund: $ 226,355 •Debt Service Fund:$ 360,393 Background: Budget vs. CAFR •Budget: •Looks forward •Projects revenues and expenditures •Serves as a: •Financial plan •Policy document •Operations guide •Communications device •Certified Annual Financial Report (CAFR) •Looks backward •Follows General Accepted Accounting Principles (GAAP) •Records actual revenues and expenditures •Records depreciation expense •Asset value often included, in addition to cash Background: Council Approval •Formally adopts the budget (expenditures) as a total for each operating fund •Amends budget if needed during the year and typically at year-end •Sets the tax rate and all other fees and charges •Adopts a 5-year CIP by resolution •Approves all purchases and contracts over $50,000 Background: Controls •City Manager’s Office: •Authorization to fill personnel vacancies •Authorizes change orders •Executes contracts as authorized by the Council and all contracts under $50,000 •Approves all P.O. requests and invoices after department approval •Finance: •Reviews and approves all P.O. requests and invoices •Department Heads: •May move funds between divisions in their department •Approves all P.O. requests and invoices submitted for payment from their budget(s) Background: Fiscal Year •October 1 –September 30 •Operating budget money not spent (i.e. expenditures coming in under budget) at September 30th must either be transferred to a non- operating fund (to set aside/save) or it rolls back in to fund balance and must be “re-appropriated” by Council •Similarly, any revenues received above what is needed to cover expenditures rolls into fund balance at year-end unless it is specifically set aside •For a number of years fund balance continued to grow due to revenues exceeding expectations and expenditures coming in under budget (Colleyville budgets and projects very conservatively) This is how we can afford the $1M draw down of fund balance for street maintenance each year through FY 2018 Background: Budget Amendment •Historically the City Council has approved a budget amendment in September to set aside (transfer to the Capital Projects Fund) certain funds at year-end: •Street maintenance budget money that has not been spent yet •This is handled differently beginning in FY 2016 -the entire street CIP investment was transferred to the Capital Projects Fund at the beginning of the fiscal year for easier tracking •More recently, any excess funds, also referred to as “revenues over expenditures”, (from revenues coming in higher than expected or expenditures coming in under budget) have been set aside for specific purposes to avoid continually adding to fund balance •Example: FY 2015 budget amendment set aside all General Fund revenues over expenditures to pay for future SH26 enhancements like lighting, benches, etc. Background: Tax Rate FY 2016 Tax Rate Breakdown Operating Portion $0.33624 Debt Portion $0.01966 Total Tax Rate $0.35590 •Property tax rates have two components: •Maintenance & operations (M&O) tax rate –General Fund •Interest & sinking (I&S)/debt service tax rate –Debt Service Fund •Effective Tax Rate: •The rate that would produce the same amount of taxes if applied to the same properties taxed in both years (i.e. without new construction) •Rollback Tax Rate: •Calculates an effective rate for just M&O portion of the tax rate •M&O effective rate plus 8% + debt service tax rate = rollback rate •If a taxing unit adopts a rate above the rollback rate, voters may petition for an election on the tax increase to “roll back” to the rollback rate •Charter Limitations: •Any tax rate set per budget year shall not result in an ad valorem tax revenue increase greater than 7% of the total ad valorem tax revenue collected in the preceding budget unless authorized by the voters of the City at a special election (excludes additional ad valorem revenue attributed to construction); $1.50 max rate Background: Tax Rate Procedures •Governed by state law called “Truth in Taxation” •Tarrant Appraisal District (TAD) •Appraises property, certifying value by July 25th (95% complete after protests) •Tax Assessor-Collector (GCISD) •Provides the Appraisal Roll, as sworn by TAD •Certifies an anticipated collection rate (typically 100% for Colleyville) •Uses software that is updated to reflect current state law •Calculates effective and rollback tax rates •Determines what notices, public hearings, and specific motion/ordinance language is needed •Manages collection of property taxes •August 9th Special City Council Meeting: •Submission of effective and rollback calculations to City Council •Approval of Certified Appraisal Roll •Submission of a certified collection rate •Vote to state intended tax rate (determines public notice language & what public hearings are required) •Vote to schedule public hearings on the tax rate, if needed Background: Tax Rate Comparison $0.328437 $0.355900 $0.434690 $0.462000 $0.467500 $0.494830 $0.610560 $0.610000 $- $0.100000 $0.200000 $0.300000 $0.400000 $0.500000 $0.600000 $0.700000 Grapevine Colleyville Keller Southlake Euless Bedford Hurst North Richland Hills FY 2016 Property Tax Rates Background: Overlapping Tax Rates FY 2016 Colleyville 15% Hospital 10% GCISD 57% College 7% County 11% $0.1495 $0.227897 $0.2640 $0.3559 $1.3201 $- $0.500000 $1.000000 $1.500000 $2.000000 $2.500000 FY 2016 Total Tax Rate: $2.32 GCISD City County Hospital College Presentation Overview Budget background information Budget process and components General financial outlook Budget Process: Overview Winter-Update Department Business Plans February-Review budget calendar with City Council March/April-Budget Kickoff & Departments Prepare Submissions May-Budget Team reviews all budget submissions Summer Budget Worksessions with the City Council August 9 Worksession- Proposed Budget September –Budget & Tax Rate Adoption Strategy Map & Department Business Plans Council Direction Employee Engagement Survey Citizen Survey Budget Process: Budget Kickoff •Prior to Budget Kickoff, the Budget Calendar agreed upon by City Council in February is distributed to staff for scheduling around key dates •Kickoff meeting is typically held in late March (FY 2017 Budget Kickoff was March 31, 2016) •Kickoff agenda and purpose is to review the following with staff: •Budget process •Expectations-resources should fund current programs and services before considering new/expanded services •Deadlines •Mechanical “how to’s ” and walk through tutorials in budget software Budget Process: Department Submissions •Each department begins the budget process by reviewing the current year line-item detail •Subtract: budget $ for items that are no longer needed •Add: cost increases that are anticipated for contracts or supplies (ex. Increased costs for software maintenance contracts, or chemicals for athletic fields, etc.) •Direction to staff: move $ between line items to offset increases with other reductions to the greatest extent possible without reducing service levels •April 15th: deadline for departments to submit their budgets after this initial “scrub” that eliminates funding no longer needed and adds funding necessary to maintain the current service level Budget Process: Department Submissions Departments also submit several other items during the next phase of the budget process: •Revenue estimates for fees and charges •Additional funding requests •to fully fund the current service level •for service level enhancements •Capital Improvement Plan (CIP) Project Requests Budget Process: Budget Team Review Budget Team: City Manager, Deputy City Manager, ACM/Director of Public Safety, CFO, Accounting Manager, Human Resources Director, Strategic Services Manager Department Meetings with Budget Team •First two weeks of May •1 –3 hours with every department •Review: •Budget line item detail in each fund identify additional cost savings •Additional funding requests •CIP requests •Flag items that could be funded with Special Revenue Funds (reduce burden on General Fund) •Flag items that could be funded through savings in the current fiscal year Budget Process: Vehicle Replacement During the annual budget process (April/May), replacement schedules are updated Replacement Schedule Forecasting Period Funding Source Methodology Annual Amount Police Vehicles 5 years CCCPD Fund CCCPD Annual Budget $230,000 - $300,000 Fire Apparatus 40 years General Fund contributes annually to “savings account” Annual Transfer from General Fund to Vehicle & Equipment Replacement Fund beginning FY17 $200,000 General Fund Vehicles & Mobile Equipment 15 years General Fund contributes annually to “savings account” Annual Transfer from General Fund to Vehicle & Equipment Replacement Fund $221,000 Utility Fund Vehicles & Mobile Equipment 15 years Utility Fund contributes annually to “savings account” Annual set aside of funds to a dedicated cash account in the Utility Fund $81,000 Drainage Fund Vehicles & Mobile Equipment 15 years Drainage Fund Drainage Fund Annual Budget; may internally finance over multiple years by borrowing from Colleyville Tomorrow Fund if needed Varies Budget Process: Other Replacements During the annual budget process (April/May), replacement schedules are updated Replacement Schedule Replacement Frequency Funding Source Methodology Annual Amount Police Weapons (handguns & tasers) Oldest each year CCCPD Fund CCCPD Annual Budget $8,500 Police In-Car Computers 6 years (kept for 2 vehicle cycles) CCCPD Fund contributes annually to “savings account” Annual Transfer from CCCPD Fund to Vehicle & Equipment Replacement Fund $10,000 Fire Airpacks 10 years General Fund contributes annually to “savings account” Annual Transfer from General Fund to Vehicle & Equipment Replacement Fund beginning FY17 $26,706 Major Technology Hardware (servers, etc.) 5 years (servers & network equip.) General Fund contributes annually to “savings account” / Annual Budget Annual Transfer from General Fund to Vehicle & Equipment Replacement Fund beginning FY17 / General Fund Annual Budget $31,000 / Varies Laptop &Desktop Computers 4 years General Fund General Fund Annual Budget Varies Building Systems Varies Various Forecast needs and include in annual budgets as funding allows Varies Budget Process: Budget Worksessions •June Budget Worksession •Review background information & budget process to date •Provide general financial outlook •Seek City Council direction •August Budget Worksession •Present proposed budget •Seek City Council direction •Additional Budget Worksessions as needed Budget Process: Proposed Budget The Proposed Budget is compiled by including the following: •Funding to maintain existing programs and services at the current service level, unless directed otherwise by the City Council •Additional funding requests, as resources allow •Prioritized and ranked by Leadership Team •Based on any specific direction from City Council, if provided Proposed Budget to Adopted Budget: •Proposed Budget presented at the August Budget Worksession •Receive direction from the City Council •Incorporate any changes for public hearing and 1st reading of the budget ordinance at the 1st City Council meeting in September Presentation Overview Budget background information Budget process and components General financial outlook Special Revenue Funds Library, Parks, Recreation, & Colleyville Center Fund Balance at 9/30/15 Revenue Source Purpose/Restrictions on Use of Funds Voluntary Park $ 852,226 Donations through utility bills New or existing park capital costs (no M&O) Voluntary Library 404,761 Donations through utility bills Library activities-primarily purchase of books and materials (no M&O) Tree Preservation 24,735 Tree mitigation fees Tree replanting on city-owned property Library Donation 135,061 Donations Library needs or as specified by donor Recreational Event 5,449 Event revenue (like sale of tables)Special events expenses Parks Tomorrow 1,197,656 Gas leases on City park property Parks capital projects Parkland Dedication 2,317,842 Fees on new residential & commercial development Acquisition of land for new park sites or improvements/expansions of existing parks (no M&O) Kimzey Park 3,576 Remaining grant proceeds Kimzey Park Kidsville Maintenance 20,251 Remaining donations Kidsville maintenance Colleyville Economic Dev. Corporation (CEDC)2,975,894 0.5 cent sales tax For Library,Parks, and Colleyville Center; max. 10% on promotional expenses and special events Special Revenue Funds Public Safety & Courts Fund Balance at 9/30/15 Revenue Source Purpose/Restrictions on Use of Funds Police Asset Forfeiture $ 4,092 Seizures Police operations as restricted by law Crime District (CCCPD)1,481,643 0.5 cent sales tax Public safety and crime control activities LEOSE 1,711 State of Texas Police training Court Technology 61,707 Municipal court technology fee Court technology repairs, replacements,and upgrades Court Security 72,960 Municipal court building security fee Security-related expenses for the court (Bailiff) Juvenile Case Manager 20,234 Juvenile case manager fee Staff who handle juvenile defendants and their training Special Revenue Funds Capital Projects or Facilities Fund Balance at 9/30/15 Revenue Source Purpose/Restrictions on Use of Funds Colleyville Tomorrow $ 2,283,537 Gas leases on City property Capital purchases; $394,700 committed for installation of city-owned fiber CEDC Capital Project 65,794 Bond proceeds Bond projects: Library, City Park, McPherson Park, Colleyville Center capital projects Colleyville Center Development 5,857 Donations Colleyville Center TDPA Grant (EECBG Grant)8,133 U.S. Dept.of Energy Energy efficiency projects Tax Increment Financing District (TIF)15,852,106 Incremental A/V revenue in the TIF District Projects in the Project Plan approved by all TIF partners Capital Projects Fund 13,838,090 Impact Fees, Perimeter Street Fees, Escrows, Transfers from the General Fund The majority of funds are restricted due to impact fee use restrictions or commitments for approved capital projects Special Revenue Funds Capital Projects Fund (current estimates) •Escrows (perimeter street fees, sidewalks, etc.)$1.6 M •Street Impact Fees (for capacity improvements)$1.3 M •Cash Accts. For committed funds (primarily Service Center)$0.9 M •Invested cash (mostly perimeter street fees)$2.0 M •SH26 future enhancements $1.4 M •2007 G.O. Bonds $0.1 M •Future facilities needs $0.3 M •SH26 management support $0.2 M •Capital Projects (set aside for committed projects & future projects)$8.1 M Special Revenue Funds Other City Purposes Fund Balance at 9/30/15 Revenue Source Purpose/Restrictions on Use of Funds Vehicle and Equipment Replacement (VERF)$ 797,959 Transfers from the General Fund Committed to server, equipment, and vehicle replacements Strategic Initiatives Fund 295,198 Transfers from the General Fund Programs/projects linked to the strategic plan; primarily used on eco. dev. incentives Sales Tax Incentive Fund 357,333 2006 Transfer from the General Fund Sales tax incentive agreements; seeking City Attorney opinion on future utilization of these funds Recycling Fund 1,627 Solid Waste Franchise Fee Recycling program; primarily used for HHW disposal at Clean Sweep and ECC Public Art 7,904 2008-2009 Transfers from General, Utility, Drainage, & CEDC Funds Public Art Special Donations Donations Only restricted if specified by donor Parks 9,735 - Police 7,319 - Fire 31,812 - Seniors 7,509 - Recreation 928 - Community Wellness 15,000 -Baylor Challenge-to further community wellness General Fund FY 16 Budget FY 16 Projections Notes Ad Valorem Revenue $12,928,456 $12,908,456 Property taxes, delinquent taxes, penalties & interest Sales Tax 3,480,000 3,690,072 1 cent sales tax and mixed beverage tax Franchise Fees 2,061,000 2,149,251 Gas, Electricity, Cable, Telecom, and Solid Waste Licenses & Permits 882,800 946,647 Building permits, plan review fees, and all other permits Fines 876,000 874,420 Fines from court, citations, alarms,and past due library materials Charges for Service 1,089,800 828,506 Ambulance,recreation programs, field use, Colleyville Center, engineering & inspection, and materials testing fees Intergovernmental 311,979 311,979 From City of Keller (Court) and GCISD (portion of school resource officer) Misc./Interest Earnings 155,040 198,339 Interest, cell tower leases, sale of property,misc. Use of Fund Balance 1,000,000 1,000,000 Draw down of fund balance for Streets CIP Transfers In 1,233,417 1,233,417 Utility Fund franchise fee and G&A transfer; Capital Projects construction inspector Total Revenue $24,018,492 $24,073,233 Total Expenditures $23,977,370 $23,977,370 Utility Fund FY 16 Budget FY 16 Projections Notes Water Sales $11,467,441 11,378,826 Oct-May actuals; June-Sept est. based on prior year consumption Wastewater Sales 4,050,786 3,596,269 Oct-May actuals; June-Sept. est. based on prior year Water Installation 21,000 42,000 Wastewater Installation 7,000 15,000 Sewer Tie-On Charges 5,000 0 Engineering Charges 50,000 5,000 Engineering review &inspection fees related to utilities Penalties/Misc.241,772 250,000 Penalties on late payments Interest 20,300 25,000 Interest earnings Use of Available Cash 450,000 450,000 Use of fund balance for utility CIP projects Total Revenue $16,313,299 $15,762,095 Total Expenditures $15,886,362 $15,762,095 Note: does not include developer contributions or impact fees Drainage Fund FY 16 Budget FY 16 Projections Notes Drainage Fees $937,872 940,000 Stormwater drainage fee of $7 on monthly residential water bill; commercial fee based on property size and usage Penalties/Misc.16,413 5,000 Penalties on late payments Interest Income 2,289 4,500 Interest earnings Total Revenue $956,574 949,000 Total Expenditures $917,997 917,000 Debt Service Fund FY 16 Budget FY 16 Projections Notes/Assumptions Ad Valorem Revenue $681,434 $750,000 Declining debt rate: $0.019660 vs. $0.021286 in FY 2015 Transfer In –CCCPD 500,242 500,242 CCCPD pays the portion of the debt payment related to the Justice Center Interest Income 2,251 2,500 Interest earnings Use of Available Cash 277,666 208,851 Radio Tower Lease & 2016 Fire Engine Down Payment Total Revenue $1,461,593 $1,461,593 Total Expenditures $1,461,593 $1,461,593 Next Steps: Meeting Dates June 20: Line item review of the budget July 25: Budget Worksession (review CIP) July 25 : TAD provides certified assessed valuation (AV) August 9: City Council Special Meeting Budget Worksession (Proposed Budget presented) August 23: Budget Worksession City Council Special Meeting (if needed) September 6:1st reading of Budget & Tax Rate ordinances September 20:2nd reading of Budget & Tax Rate ordinances Note: CCCPD, CEDC, and publication of public notices not included; please refer to the complete budget calendar for details Questions and Discussion City of Colleyville Page 1 City of Colleyville Colleyville City Council Worksession Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2b Agenda Date 06/16/2016 Number Type Presentation and Discussion Department Human Resources Title Overview of compensation and benefits Strategy Map Connection F3- Forecast needs and plan for the future, balancing priorities with resources F4- Adhere to the City’s financial and budgetary policies Explanation This agenda item provides for an overview of the City's compensation and benefits programs for employees. Staff will present the attached presentation and answer any questions the City Council may have. Attachments 1.Overview of Compensation and Benefits Ov e r v i e w o f Co m p e n s a t i o n a n d Be n e f i t s Bu d g e t W o r k s e s s i o n Ju n e 1 6 , 2 0 1 6 SE R V I C E Pe r s o n n e l C o s t s O v e r a l l PE R S O N N E L 38 % CO N T R A C T U A L 39 % SU P P L I E S 4%CA P I T A L 4% IN T E R F U N D TR A N S F E R S (O U T ) 11 % DE B T SE R V I C E 4% Pe r s o n n e l Co s t s b y F u n d 0% 1 0 % 2 0 % 3 0 % 4 0 % 5 0 % 6 0 % 7 0 % 8 0 % 9 0 % 1 0 0 % GE N E R A L FU N D UT I L I T Y FU N D DR A I N A G E FU N D PE R S O N N E L CO N T R A C T U A L SU P P L I E S CA P I T A L IN T E R F U N D TR A N S F E R S (O U T ) DE B T SE R V I C E Pe r s o n n e l Co s t s I n c l u d e $0 $1 0 , 0 0 0 $2 0 , 0 0 0 $3 0 , 0 0 0 $4 0 , 0 0 0 $5 0 , 0 0 0 $6 0 , 0 0 0 Sa l a r y W o r k Co m p F I C A G r o u p He a l t h In s u r a n c e Un e m p l o y m e n t T M R S Em p l o y e e s Pe r C a p i t a Co l l e y v i l l e B e d f o r d C o p p e l l Fl o w e r Mo u n d G r a p e v i n e H u r s t K e l l e r S o u t h l a k e Ci t y P o p u l a t i o n 2 4 , 2 3 0 4 9 , 0 5 4 4 0 , 3 4 2 6 6 , 8 2 0 49 , 8 6 7 3 8 , 5 0 0 4 2 , 8 9 0 2 8 , 8 6 8 Nu m b e r o f F T E ' s 2 0 5 . 6 3 3 8 6 . 0 9 3 9 7 60 2 . 7 5 6 8 4 . 8 3 3 9 8 . 3 4 3 4 2 . 2 6 3 5 6 . 8 5 Em p l o y e e F T E ' s pe r c a p i t a 0 . 0 0 8 0 . 0 0 8 0 . 0 1 0 0. 0 0 9 0 . 0 1 4 0 . 0 1 0 0 . 0 0 8 0 . 0 1 2 To t a l Co m p e n s a t i o n P r o g r a m Sa l a r y / W a g e s Jo b C l a s s i f i c a t i o n a n d C o m p e n s a t i o n S y s t e m • Cl a s s i f i c a t i o n a n d c o m p e n s a t i o n p h i l o s o p h y a n d s t r a t e g y ; • Cl a s s i f i c a t i o n s t r u c t u r e a n d s p e c i f i c a t i o n s ; • Jo b e v a l u a t i o n a n d i n t e r n a l e q u i t y ; • Ex t e r n a l m a r k e t c o m p e t i t i v e n e s s ; • Pa y s t r u c t u r e a n d t r a n s i t i o n r e c o m m e n d a t i o n s a n d im p l e m e n t a t i o n c o s t ; • On g o i n g c o m p e n s a t i o n s y s t e m m a n a g e m e n t a n d m a i n t e n a n c e sy s t e m ; a n d • Sa l a r y a d m i n i s t r a t i o n p r o c e d u r e s . Jo b Cl a s s i f i c a t i o n 1. J o b A n a l y s i s 2. I n t e r n a l E q u i t y 3. E x t e r n a l M a r k e t 4. J o b C l a s s i f i c a t i o n / S t r u c t u r e d P a y P l a n Jo b Cl a s s i f i c a t i o n 10 0 j o b d e s c r i p t i o n s (T r a d i t i o n a l G r a d e S y s t e m ) 30 j o b d e s c r i p t i o n s (B r o a d - b a n d i n g S y s t e m ) Pa y P l a n Oc c u p a t i o n a l Gr o u p C l a s s i f i c a t i o n D B M P a y Range FTE Li b r a r y Se r v i c e s L i b r a r y Cl e r k A 1 2 $ 2 6 , 0 7 4 $31,288 $36,503 2 Ma i n t e n a n c e & Op e r a t i o n s M & O Te c h n i c i a n A 1 2 $ 2 6 , 0 7 4 $31,288 $36,503 3 A1 3 $ 2 9 , 2 0 2 $35,042 $40,883 19 Ad m i n i s t r a t i v e Su p p o r t A d m i n i s t r a t i v e Su p p o r t As s i s t a n t A 1 3 $ 2 9 , 2 0 2 $35,042 $40,883 3 Ma i n t e n a n c e & Op e r a t i o n s C o d e En f o r c e m e n t Of f i c e r B 2 1 $ 3 0 , 8 3 7 $38,547 $46,256 1 Ad m i n i s t r a t i v e Su p p o r t A d m i n i s t r a t i v e Su p p o r t Te c h n i c i a n B 2 2 $ 3 2 , 9 9 6 $41,245 $49,494 10 Li b r a r y Se r v i c e s L i b r a r y As s i s t a n t B 2 2 $ 3 2 , 9 9 6 $41,245 $49,494 5 Ma i n t e n a n c e & Op e r a t i o n s M & O Sp e c i a l i s t B 2 2 $ 3 2 , 9 9 6 $41,245 $49,494 8 B2 3 $ 3 5 , 5 4 2 $44,427 $53,312 7 Ad m i n i s t r a t i v e Su p p o r t A d m i n i s t r a t i v e Su p p o r t Sp e c i a l i s t B 2 3 $ 3 5 , 5 4 2 $44,427 $53,312 4.5 B2 4 $ 3 8 , 9 6 4 $48,705 $58,446 3 Ma n a g e m e n t & Pr o g r a m Su p p o r t M a n a g e m e n t Sp e c i a l i s t B 2 3 $ 3 5 , 5 4 2 $44,427 $53,312 1 B2 4 $ 3 8 , 9 6 4 $48,705 $58,446 Ma i n t e n a n c e & Op e r a t i o n s M & O Pr o j e c t Sp e c i a l i s t B 2 4 $ 3 8 , 9 6 4 $48,705 $58,446 1 B2 5 $ 4 3 , 9 4 0 $53,664 $63,388 5 Ad m i n i s t r a t i v e Su p p o r t A d m i n i s t r a t i v e Su p p o r t Su p e r v i s o r C 4 1 $ 4 9 , 2 1 2 $61,515 $73,818 2 Pa y P l a n Oc c u p a t i o n a l Gr o u p C l a s s i f i c a t i o n D B M P a y Range FTE Ma n a g e m e n t & Pr o g r a m Su p p o r t M a n a g e m e n t An a l y s t C 4 1 $ 4 9 , 2 1 2 $61,515 $73,818 7.5 Li b r a r y Se r v i c e s L i b r a r i a n C 4 1 $ 2 4 , 6 0 6 $30,758 $36,909 1 C4 2 $ 5 2 , 6 2 5 $65,781 $78,936 3 Ma i n t e n a n c e & Op e r a t i o n s M & O Su p e r v i s o r C 4 1 $ 4 9 , 2 1 2 $61,515 $73,818 1 C4 2 $ 5 2 , 6 2 5 $65,781 $78,936 1 C4 5 $ 6 2 , 8 7 2 $78,591 $94,308 Ma n a g e m e n t & Pr o g r a m Su p p o r t M a n a g e m e n t An a l y s t , Se n i o r C 4 2 $ 5 2 , 6 2 5 $65,781 $78,936 6.625 Ma i n t e n a n c e & Op e r a t i o n s M & O Pr o j e c t Ma n a g e r C 4 5 $ 6 2 , 8 7 2 $78,591 $94,308 3 Ma n a g e m e n t M a n a g e r D 6 1 $ 6 7 , 0 2 7 $87,134 $107,242 8 D6 2 $ 7 0 , 3 0 8 $91,400 $112,492 7 D6 3 $ 7 3 , 5 8 9 $95,665 $117,742 1 Ma n a g e m e n t D i r e c t o r E 8 2 $ 9 1 , 0 7 0 $1 1 8 , 3 9 1 $145,711 3 E8 3 $ 9 5 , 6 2 3 $1 2 4 , 3 1 0 $152,997 4 Ma n a g e m e n t A s s i s t a n t Ci t y Ma n a g e r / Di r . Pu b l i c Sa f e t y E9 1 $ 1 0 0 , 4 0 4 $1 3 0 , 5 2 6 $160,647 1 Ma n a g e m e n t D e p u t y Ci t y Ma n a g e r E 9 2 $ 1 1 7 , 2 9 8 $1 4 5 , 1 5 5 $173,011 1 Ma n a g e m e n t C i t y Ma n a g e r F 1 0 1 $ 1 2 7 , 0 5 3 $1 5 3 , 6 6 2 $180,270 1 TO T A L No n ‐Sw o r n 123.625 Oc c u p a t i o n a l Gr o u p C l a s s i f i c a t i o n D B M P a y Ra n g e F T E Sw o r n Fi r e F i r e f i g h t e r B 2 1 S $ 4 8 , 3 8 0 $5 4 , 6 6 9 $60,959 5 B2 2 S $ 5 1 , 2 4 7 $5 7 , 9 0 8 $64,570 13 Sw o r n Fi r e F i r e En g i n e e r B 2 4 S $ 6 0 , 3 4 0 $6 6 , 0 7 2 $71,805 9 Sw o r n Fi r e F i r e Ca p t a i n C 4 1 S $ 7 1 , 8 7 0 $7 7 , 2 6 0 $82,650 9 Sw o r n Fi r e F i r e Ba t t a l i o n Ch i e f C 4 5 S $ 7 7 , 6 8 7 $8 7 , 3 9 7 $97,108 1 C5 2 S $ 7 7 , 6 8 7 $8 7 , 3 9 7 $97,108 3 Sw o r n Po l i c e P o l i c e Re c r u i t B 2 2 S $ 4 8 , 0 8 6 Sw o r n Po l i c e P o l i c e Of f i c e r B 2 3 S $ 5 1 , 8 9 3 $6 0 , 1 9 5 $68,498 33 Sw o r n Po l i c e P o l i c e Se r g e a n t B 3 2 S $ 6 7 , 7 2 7 $7 3 , 1 4 6 $78,564 6 Sw o r n Po l i c e P o l i c e Li e u t e n a n t C 4 2 S $ 8 2 , 8 7 9 $8 8 , 2 6 7 $93,654 2 Sw o r n Po l i c e A s s i s t a n t Po l i c e Ch i e f D 6 2 S $ 9 0 , 2 8 8 $1 0 1 , 5 7 4 $112,860 1 TO T A L Sw o r n 82.000 TO T A L No n ‐Sw o r n 123.625 GR A N D TO T A L 205.625 Sw o r n P o s i t i o n s Jo b C l a s s i f i c a t i o n Co m p e n s a t i o n Co m p e n s a t i o n E l e m e n t s • Re f l e c t e c o n o m i c c o n d i t i o n s o f t h e va r i o u s o c c u p a t i o n a l l a b o r m a r k e t s i n wh i c h t h e C i t y c o m p e t e s • Ea c h c l a s s i f i c a t i o n h a s a j o b r a t e o f t h e ap p r o x i m a t e 5 0 t h p e r c e n t i l e , o r t h e mi d p o i n t , o f p a y f o r l i k e p o s i t i o n s i n t h e la b o r m a r k e t . • Re w a r d e m p l o y e e s w h o p e r f o r m a t ab o v e - s t a n d a r d l e v e l s w i t h i n t h e i r re s p e c t i v e j o b c l a s s . Ma r k e t Me r i t Ma r k e t Pr e v i o u s 1 2 M o n t h s H i r e d % H i r e d a t l e s s t h a n m a r k e t 8 9 % % H i r e d a t m a r k e t o r a b o v e 1 1 % To t a l E m p l o y e e s B e l o w M a r k e t 1 6 3 . 0 0 0 To t a l E m p l o y e e s a t o r A b o v e M a r k e t 4 2 . 6 2 5 Go a l = P a y t h e M a r k e t R a t e f o r t h e J o b Cu r r e n t E m p l o y e e s = 7 9 . 2 7 % o f e m p l o y e e s a r e b e l o w m a r k e t Ne w H i r e s : Ma r k e t A d j u s t m e n t s Sa l a r y S t r u c t u r e M a i n t e n a n c e LO N G - T E R M A P P R O A C H Co n d u c t c o m p r e h e n s i v e m a r k e t sa l a r y s u r v e y e v e r y t h r e e ( 3 ) t o fo u r ( 4 ) y e a r s - C o s t o f s u r v e y / s t a f f t i m e i s i n c u r r e d ev e r y f e w y e a r s ( b e t t e r r e t u r n o n in v e s t m e n t ) - C o u p l e w i t h a n n u a l s a l a r y s t r u c t u r e re v i e w / a d j u s t m e n t i n o f f - y e a r s t o of f s e t s i g n i f i c a n t s a l a r y l a g AN N U A L A P P R O A C H Ap p l y o v e r a l l s a l a r y s t r u c t u r e ad j u s t m e n t i n y e a r s t h a t co m p r e h e n s i v e m a r k e t s u r v e y i s n o t co n d u c t e d - D a t a c a n b e o b t a i n e d f r o m pu b l i s h e d s o u r c e ( s ) - A i d s t o m a i n t a i n m a r k e t co m p e t i t i v e n e s s i n l i e u o f co m p r e h e n s i v e s u r v e y - I n c r e m e n t a l a d j u s t m e n t s i n c u r sm a l l e r s a l a r y i n c r e a s e e x p e n s e Re c o m m e n d a t i o n # 1 : • Ra n g e ad j u s t m e n t s of 2. 1 % fo r Ex e c u t i v e an d No n ‐Exempt pay ra n g e s , an d • Ra n g e Ad j u s t m e n t s of 1. 9 % fo r No n ‐Ex e c u t i v e Ex e m p t salary ra n g e s . Re c o m m e n d a t i o n # 2 : • Ra n g e ad j u s t m e n t s of 2. 0 % fo r al l ra n g e s . An n u a l A d j u s t m e n t F Y 2 0 1 7 Co m p r e s s i o n Sa l a r y C o m p r e s s i o n : W h e n p a y d i f f e r e n t i a l s be t w e e n e x p e r i e n c e d a n d n e w l y h i r e d p e r s o n n e l ar e t o o s m a l l f o r p e r f o r m i n g t h e s a m e j o b . Co m p r e s s i o n • Ne w h i r e – Fi r e f i g h t e r / P a r a m e d i c ( B 2 2 S ) – Ma r k e t a d j u s t m e n t 2 % e a c h y e a r f o r th e n e x t f o u r y e a r s – Ne w h i r e s b r o u g h t i n a t n e w mi n i m u m f o r t h i s j o b c l a s s i f i c a t i o n ea c h y e a r • Te n u r e d E m p l o y e e – Fi r e f i g h t e r / P a r a m e d i c ( B 2 2 S ) – Cu r r e n t a n n u a l s a l a r y $ 5 1 , 2 4 7 – No m e r i t i n c r e a s e f o r f o u r y e a r s TenuredNew Hires Co m p r e s s i o n • Ne w h i r e – Po l i c e O f f i c e r ( B 2 3 S ) – Ma r k e t a d j u s t m e n t 2 . 6 % e a c h y e a r fo r t h e n e x t f o u r y e a r s – Ne w h i r e s b r o u g h t i n a t n e w mi n i m u m f o r t h i s j o b c l a s s i f i c a t i o n ea c h y e a r • Te n u r e d E m p l o y e e – Po l i c e O f f i c e r ( B 2 3 S ) – Cu r r e n t a n n u a l s a l a r y $ 5 1 , 8 9 3 – Em p l o y e e r e c e i v e s m e r i t i n c r e a s e o f 3. 3 6 % f o r t h e n e x t f o u r y e a r s Tenured New Hires Me r i t – P a y f o r P e r f o r m a n c e • Pa y i n c r e a s e s o n m a r k e t or m e r i t o n l y • Me r i t – J o b p e r f o r m a n c e • Em p l o y e e M o r a l e Pe r f o r m a n c e R e v i e w C y c l e Pe r f o r m a n c e Pl a n n i n g On g o i n g ob s e r v a t i o n a n d fe e d b a c k Se l f E v a l u a t i o n Pe r f o r m a n c e Ev a l u a t i o n R e v i e w -E x c e p t i o n a l -S u c c e s s f u l -N e e d s I m p r o v e m e n t Bu d g e t i n g f o r M e r i t R a i s e s Co l l e y v i l l e B e d f o r d C o p p e l l G r a p e v i n e H u r s t K e l l e r S o u t h l a k e T h e Colony Mo s t re c e n t CO L A pe r c e n t (a v e r a g e al l em p l o y e e s ) : 4 . 0 0 % 3 . 0 0 % 1 . 5 0 % 5 . 0 0 % Mo s t re c e n t Me r i t pe r c e n t (a v e r a g e al l em p l o y e e s ) : 3 . 3 6 % 3 . 0 0 % 2 . 8 1 % 2 . 0 0 % 2 . 8 8 % Mo s t re c e n t Ma r k e t Ad j u s t m e n t (a c r o s s th e bo a r d ) : 2. 0 0 % 2 . 0 0 % Mo s t re c e n t Ma r k e t Ad j u s t m e n t (b o t t o m of ra n g e on l y ) : 2. 6 0 % 1 . 5 0 % 3% for Public Safety Mo s t Em p l o y e e s Re c e i v e d : 3 . 3 6 % 4 . 0 0 % 3 . 0 0 % 4 . 8 1 % 3 . 0 0 % 4 . 0 0 % 4 . 3 8 % 5 . 0 0 % Av e r a g e o f S u r r o u n d i n g C i t i e s : 4 . 0 3 % Jo b C l a s s i f i c a t i o n a n d C o m p e n s a t i o n S u m m a r y Jo b C l a s s i f i c a t i o n a n d C o m p e n s a t i o n • Co m p r e h e n s i v e S t u d i e s e v e r y 3 - 4 y e a r s • An n u a l M a r k e t E v a l u a t i o n • Me r i t R a i s e s – P a y f o r P e r f o r m a n c e Cl a s s i f i c a t i o n a n d C o m p e n s a t i o n Be n e f i t s Be n e f i t s • Me d i c a l • De n t a l • Vi s i o n • Li f e a n d A c c i d e n t a l D e a t h a n d D i s m e m b e r m e n t • Fl e x i b l e S p e n d i n g A c c o u n t s ( F S A ) • He a l t h R e i m b u r s e m e n t A c c o u n t ( H R A ) • Lo n g T e r m D i s a b i l i t y • Vo l u n t a r y S u p p l e m e n t a l I n s u r a n c e ( A c c i d e n t , c a n c e r p o l i c i e s , et c . ) • Re t i r e m e n t - T M R S Be n e f i t s : T y p i c a l l y 3 0 % - 4 0 % o f o v e r a l l c o s t Me d i c a l I n s u r a n c e Me d i c a l P r e m i u m s A n n u a l l y Av e r a g e $ 1 1 , 8 7 9 p e r e m p l o y e e p e r y e a r Co l l e y v i l l e B e d f o r d C o p p e l l Fl o w e r Mo u n d G r a p e v i n e H u r s t K e l l e r S o u t h l a k e Ci t y Po p u l a t i o n 2 4 , 2 3 0 49 , 0 5 4 40 , 3 4 2 66 , 8 2 0 49 , 8 6 7 38 , 5 0 0 42,890 28,868 Av e r a g e E m p l o y e e s on Me d i c a l Pl a n in FY 2 0 1 5 1 7 0 2 9 5 3 8 7 5 0 7 5 8 9 3 1 6 2 6 0 2 9 6 To t a l Pr e m i u m s Pa i d $ 1 , 7 9 6 , 2 1 2 $3 , 0 6 0 , 0 0 0 $3 , 9 0 6 , 6 8 2 $ 7 , 7 3 0 , 0 0 0 $5 , 9 2 1 , 0 4 5 $4 , 5 1 0 , 3 1 0 $ 3 , 6 0 9 , 1 6 4 $3,121,611 Me d i c a l Pr e m i u m s pe r Em p l o y e e ‐ Av e r a g e FY 1 5 $ 1 0 , 5 6 6 $1 0 , 3 7 3 $1 0 , 0 9 5 $1 5 , 2 4 7 $1 0 , 0 5 3 $1 4 , 2 7 3 $13,881 $10,546 Pl a n Ty p e F u l l y in s u r e d F u l l y in s u r e d S e l f in s u r e d S e l f in s u r e d S e l f in s u r e d S e l f in s u r e d F u l l y insuredFully insured TM R S R e t i r e m e n t Co l l e y v i l l e B e d f o r d C o p p e l l E u l e s s G r a p e v i n e H u r s t K e l l e r N R H S o u t h l a k e T h e Colony Ci t y Po p u l a t i o n 2 4 , 2 3 0 49 , 0 5 4 40 , 3 4 2 49 , 8 6 7 38 , 5 0 0 42 , 8 9 0 67,300 28,868 41,352 TM R S bl e n d e d ra t e 7. 7 6 % 7 . 5 6 % 1 5 . 3 3 % 1 9 . 0 8 % 9 . 7 6 % 1 5 . 2 2 % 1 1 . 6 2 % 1 2 . 5 7 % Av e r a g e Em p l o y e r Co n t r i b u t i o n to TM R S $5 , 0 3 2 $4 , 3 1 6 $1 0 , 7 6 0 $1 8 , 2 7 6 $5 , 8 1 9 $9 , 5 8 6 $6,795 $4,458 Em p l o y e r Ma t c h 2 to 1 2 to 1 2 to 1 2 to 1 2 to 1 2 to 1 2 to 1 2 to 1 2 to 1 2 to 1 Em p l o y e e De p o s i t Ra t e 7% 7 % 7 % 7 % 7 % 7 % 7 % 7 % 7 % 7 % Ve s t i n g Re q u i r e m e n t s 5 ye a r s of se r v i c e 5 ye a r s of se r v i c e 5 ye a r s of se r v i c e 5 ye a r s of se r v i c e 5 ye a r s of se r v i c e 5 ye a r s of se r v i c e 5 ye a r s of se r v i c e 5 years of service 5 years of service 5 years of service Re t i r e m e n t El i g i b i l i t y 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yr s of se r v i c e / a g e 60 ; 20 yr s /a n y ag e 5 yrs of se r v i c e / a g e 60 ; 20 yrs /any age 5 yrs of service/age 60; 20 yrs /any age 5 yrs of service/age 60; 20 yrs /any age Ad d i t i o n a l Su p p l . D e a t h Y e s No Ye s No No No Ye s No Yes Yes Up d a t e Se r v i c e C r e d i t Y e s No Ye s Ye s Ye s Ye s Ye s Yes Yes Yes Mi l i t a r y Se r v i c e Cr e d i t Y e s No Ye s Ye s Ye s Ye s Ye s Yes Yes Yes Re s t r i c t e d Se r v i c e Cr e d i t Ye s No Ye s Ye s Ye s Ye s Ye s Yes Yes Yes CO L A An n u i t y In c r e a s e N o No Ye s Ye s Ye s Ye s Ye s Yes Yes Yes Summary •Market competitiveness (attracting employees) •Merit / Pay for Performance (motivate and retain employees) •Benefits (attracting and retaining employees) Ne x t S t e p s f o r F Y 2 0 1 7 • He a l t h i n s u r a n c e c o n t r a c t s o n ag e n d a f o r a p p r o v a l • Di s c u s s i o n o f t h e C i t y ’ s T M R S P l a n Ci t y C o u n c i l Ju n e 2 1 Ci t y C o u n c i l Ju l y 1 2 • Di r e c t i o n o n F Y 1 7 H e a l t h In s u r a n c e • Di r e c t i o n o n F Y 1 7 A n n u a l M a r k e t St u d y R e s u l t s Ci t y C o u n c i l Ju l y 1 9 Qu e s t i o n s a n d D i s c u s s i o n