HomeMy WebLinkAboutBudget Presentation to CommissionersBudget Development Update
FY2014 Proposed Budget
June 13, 2013
Presented by
Office of Management & Budget
Preliminary FY2014 Budget
• General Fund revenue for FY2014 is projected to
be approximately $15.5 million higher than
FY2013 budgeted revenue
FY2013 FY2014
Budget Preliminary
Variance
GF Revenues $506.2 million $521.7 million $15.5 million
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Preliminary FY2014 Budget
• Where does this additional revenue come from?
Property tax revenue
Utility fee revenue
Parking revenue
Building permit revenue
Other charges for services
$6.6 million
$3.0 million
$1.5 million
$2.0 million
$2.4 million
Total $15.5 million
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Preliminary FY2014 Budget
• How the added revenue is used to cover operating
expense increases:
Pension cost increase (current terms) $18.4 million
(with assumed additional revisions) $12.4 million
Worker's compensation cost increase $4.4 million
Increase to Leave Payout Reserve $3.0 million
Election costs $1.6 million
FOP wage increase $1.2 million
Law Enforcement Trust Fund $0.8 million
Elimination of Finance & OT Set -Aside ($1.5 million)
Elimination Capital Set Aside ($1.6 million)
Less Identified Efficiencies (net) ($4.8 million)
Total $15.5 million
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Other FY2014 Considerations
• Health Care for FT Temporary Employees
— Required under the Affordable Health Care Act
(not yet in Preliminary Budget, but appears to be required effective January 1st,
2014)
— Estimated cost: $2.3 million for approximately 200 full-
time temporary employees
• Living Wage Ordinance
— Without additional extension, minimum wages at the City
will be increased to $12.45 per hour (assuming health care is
provided)
— Estimated cost impact: $1.2 million (223 employees)
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Other FY2014 Considerations
• Cost of converting FT temps to FT employees
— Only FT temps with 10 Years of Service or greater
• 12 Employees
• Estimated Impact: $372K
— Only FT temps with 8 Years of Service or greater
• 19 Employees
• Estimated Impact: $590K
— Only FT temps with 5 Years of Service or greater
• 81 Employees
• Estimated Impact: $2.5 million
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Other FY2014 Considerations
• Cost of converting FT temps to FT employees
60 -
50 -
a 40
E
LL30
E 20
10
0
52
0
Distribution of FT Temps by Completed Years of Service
32 32
116 17
13 13
i
4
. ■ 3
■ 0 0 1_ 1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Completed Years of Service
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Other FY2014 Considerations
• Hiring additional police officers
(assuming full year of employment)
— Estimated cost of $130K per officer (first year cost)
$92K per officer (second year cost)
— 25 New Officers = $3.3 million (first year cost)
$2.4 million (second year cost)
— 100 New Officers = $13.1 million (first year cost)
$9.3 million (second year cost)
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Other FY2014 Considerations
• What are the highest priorities among the initiatives
being considered?
— Living Wage?
— Full time temporary conversion?
— Additional Officers?
— Others?
• How will priority initiatives be funded?
— Increase revenue
— Identify additional cuts
— Use of reserves
— Alternative funding sources (i.e. COPS grant)
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