Salt Lake City Council Staff Report
Total Page：16
File Type：pdf, Size：1020Kb
SALT LAKE CITY COUNCIL STAFF REPORT BUDGET ANALYSIS – FISCAL YEAR 2012-13 DATE: May 8, 2012 BUDGET FOR: DEPARTMENT OF HUMAN RESOURCES STAFF REPORT BY: Karen Halladay, Budget and Public Policy Analyst cc: Cindy Gust-Jenson, Jennifer Bruno, David Everitt, Gina Chamness, Gordon Hoskins, Debra Alexander, Jodi Langford, David Salazar Per its mission statement, “The Department of Human Resources supports the mission, goals and values of Salt Lake City Corporation by acting as the leader and a strategic partner with city leaders, departments and employees to create and maintain a competent, diverse and professional workforce committed to the single goal of delivering great public service to Salt Lake City residents and visitors. The Department fulfills its mission by: • Advancing a fair, equitable and inclusive working environment that ensures that all City employees feel welcome in the workplace; • Providing prompt and effective HR consultation to departments; • Effectively recruiting, attracting and retaining qualified employees; • Ensuring fair, competitive and equitable pay for all city employees; • Administering competitive benefits that serve the health, welfare and financial wellness of City employees and retirees; • Promptly investigating and resolving EEO complaints; • Creating and delivering training that enhances employee’s ability to be successful in the workplace; and • Automating processes and records management to ensure efficient and prompt service to customers.” The Department of Human Resources provides numerous services for all City employees. Department programs include: Compensation and Employment Recruiting; Benefits; Insurance and Risk Management; Training and Equal Employment Opportunity (EEO) Compliance ; Departmental Payroll and Administrators; Departmental Consultants and Administrative Support. For FY 2013, Salt Lake City budgets, including Airport, Golf, Public Utilities, and Refuse/Environmental Management Fund provide funding for 2,727 employees. The Mayor’s Recommended Budget for FY 2012-13 includes 24.5 more Full Time Equivalent (FTE) positions than the prior year. Human Resource costs, such as compensation, payroll tax, employee benefits, account for approximately sixty-nine (69) percent of the City’s General Fund budget. The City’s General Fund personnel related expenditures for FY 2012-13 are proposed to increase by $4,886,340 as a result of pension plan increases , compensation and health insurance, , . Of this amount, approximately $3.0 million is statutorily required to fund pension contributions. Note: Additional details regarding the City’s Health Insurance and Compensation can be found in separate staff reports, Insurance and Risk Management Fund and Employee Compensation. 1 The following informational chart presents Salt Lake City staffing details by department for the General Fund, including: 1) the net cost of proposed FTE additions and reductions for FY 2013 and 2) the on-going future annual base salary cost for the proposed changes to FTEs. Budgeted staff positions information for the prior two fiscal years, FY 2012 and FY 2011, are presented for comparative purposes. Salt Lake City Corporation Net Cost of Proposed FTE Staffing Budget - Number of Positions Additions/Reductions Department Budget Budget Budget FY 2012-13 FY 2012-13 Future Annual FY 2011 FY 2012 FY 2013 Variance Cost * Base Cost General Fund Attorney's Office 54.00 54.00 56.70 2.70 $ 216,700 $ 216,700 City Council 23.13 24.13 24.13 0.00 $ - $ - 911 Communications Bureau 0.00 0.00 73.00 73.00 $ 5,181,373 $ 5,181,373 Community Development 190.00 190.80 191.55 0.75 $ (47,000) $ 11,000 Administrative Services 0.00 0.00 0.00 0.00 $ - $ - Department of Finance 46.70 49.20 56.20 7.00 $ 195,167 $ 277,700 Fire Department 358.00 356.50 324.50 (32.00) $ (1,457,121) $ (1,457,121) Department of Human Resources 16.16 21.26 22.26 1.00 $ 57,932 $ 77,243 Justice Courts 46.00 46.00 43.50 (2.50) $ - $ - Mayor's Office 22.00 24.00 25.00 1.00 $ 57,932 $ 77,243 Police Department 585.50 585.00 537.00 (48.00) $ (3,150,686) $ (3,150,686) Public Services Department 225.08 229.08 235.13 6.05 $ 391,730 $ 406,730 Total General Fund 1566.57 1579.97 1588.97 9.00 $ 1,446,027 $ 1,640,182 NOTE 1: The FY 2012-13 cost assumes various start dates for added positions. Some positions start in July while others start in September, October or January. The future annual cost includes the full year salary. NOTE 2: * Future Annual Base Cost is a full year's salary cost. It does not include any future increases in salary, health insurance, benefits or pension costs (all of which are likely). The following table presents the staffing changes for the City’s Enterprise and Internal Service Funds. The total FTEs includes Enterprise, Internal Service, and the General Fund. Salt Lake City Corporation Staffing Budget - Number of Positions Department Budget Budget Budget FY 2012-13 FY 2011 FY 2012 FY 2013 Variance Enterprise Funds Airport 597.80 555.30 557.30 2.00 Golf 40.40 40.40 40.40 0.00 Public Utilities 380.00 382.00 382.00 0.00 Refuse/Environmental Management 41.05 38.30 44.60 6.30 Total Enterprise Fund 1059.25 1016.00 1024.30 8.30 Internal Service Fund Information Management Services 59.00 60.50 65.50 5.00 Fleet Management 46.60 37.60 39.00 1.40 Government Immunity 2.00 2.00 2.80 0.80 Risk Management 6.64 6.54 6.54 0.00 Total Internal Service Fund 114.24 106.64 113.84 7.20 Total Weed Abatement Special Revenue Fund 1.08 0.00 0.00 0.00 Total Positions, including General Fund 2741.14 2702.61 2727.11 24.50 2 KEY ISSUES Currently, many City employees are benefiting from a 2% reduction in their required FICA contribution. The benefit is a result of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Social Security tax withholding rate went from 6.2 percent to 4.2 percent of wages paid. Recently, this payroll tax reduction was extended through 2012. Upon expiration of this federal legislation, City employee’s FICA contribution rate will increase by 2% resulting in a net reduction in take home pay. (NOTE: Sworn Police and Fire employees (the 400/500/800/900 series) do not pay FICA taxes; therefore these employees do not receive the benefit of this reduction, nor will they be impacted if/when this temporary reduction expires.) Although this issue does not directly impact the Human Resources Department budget, the impact will affect City employees pay checks. The Administration is recommending the addition of one FTE for a HR Consultant that would develop and facilitate diversity, performance management, process analysis, policy development, succession planning, and rewards/recognition programs for City departments. An online application system has been developed. This system simplifies the process for applicants by allowing the applicant to maintain a personal application history, which is useful when applying for City jobs. In the last 2 ½ years 460 City supervisors have participated in HR’s leadership training program. The last of the series begins in May of 2012, with another 75 registered participants. New training programs being developed include: diversity, customer service, and advanced leadership training. A web-based training component is being considered in the purchase of a new training software program. Proposed Budget FY 2012-13 - The following is a summary of the proposed budget for fiscal year 2012-13. Department of Human Resources PROPOSED EXPENDITURE BUDGETS Division FTE's Adopted Proposed Difference Percent Additional Information FY 2011-12 FY 2012-13 Change Administrative Support - 11.26 956,621 1,037,984 81,363 8.51% includes Information Systems, Compensation, and Human Resources Administration Department Consultants - 9 654,171 777,248 123,077 18.81% ● Addition - One FTE - HR support personnel needs of City Consultant - The proposed FTE departments. would address the City's need for program development in diversity, performanance management, process analysis, succession planning, and rewards/recognition. The Consultant would work with City Departments and report to the HR Director. Benefits - Program and 3.74 40,109,614 40,530,110 420,496 1.05% ● FTE 3.74 - Benefits positions Administration are funded by Risk Fund. Remaining positions are funded by General Fund. Training - Employee Training and 1 81,926 88,708 6,782 8.28% No Change Development Civilian Review Board - 1 141,308 144,756 3,448 2.44% No Change - Position is included provides investigative services and in Administrative Support Division. support. (Note: Listed Budget is separate. Seperately from Administrative Support.) Total - Department of 26 41,943,640 42,578,806 635,166 1.51% Human Resources 3 The Department of Human Resources includes the functions of: Human Resources Administrative Support, Departmental Consultants, Benefits, Training, and Civilian Review Board Administration. Overall, the proposed Human Resources budget of $2,048,696 is an increase of $214,670 or 11.7% over FY 2012-13. The Key Changes Document is attached for your information (Attachment 1). Explanations for largest budget changes are provided in the following section. (Note: The Insurance & Risk Management Fund will be addressed in a separate staff report.) BUDGET ITEMS AND POTENTIAL MATTERS AT ISSUE The following are general explanations of budget changes in fiscal year 2012-13. Some of the proposed expenditure changes, increases and decreases, to the budget are highlighted below. The “►” symbol indicates questions that Council may wish to address or request additional follow-up information. Staffing Related Items 1. Increase - $175,588 – Personnel Service Costs – The overall net increase to Personal Services is a result of the proposed changes to personal services costs, including increases in pension plans, compensation, health insurance and other benefits.