BLOGGER'S NOTE: This is A BIG AGENDA for a study session and it is complicated.
If you have any concerns or questions about items on this study session agenda please do not hesitate to speak up and ask questions ...some items are extracted for interest.
Mayor John Giles
Vice Mayor David Luna - District 5
Councilmember Mark Freeman - District 1
Councilmember Jeremy Whittaker - District 2
Councilmember Ryan Winkle - District 3
Councilmember Chris Glover - District 4
Councilmember Kevin Thompson - District 6
Meeting Agenda - Final
5:00 pm Lower Council Chambers
Roll Call (Members of the Mesa City Council will attend either in person or by telephone conference call)
1 Review items on the agenda for the April 3, 2017 regular Council meeting
THIS IS A 6-PAGE AGENDA
You can find it here http://mesa.legistar.com/Calendar.aspx
INCLUDING THE SALE OF OVER $170 MILLION PRINCIPAL AMOUNTS OF 2017 MESA GENERAL OBLIGATION BONDS AND MESA UTILITIES SYSTEMS REVENUE BONDS
2 Presentations/Action Items:
2a 17-0283
Hear a presentation and discuss the Fiscal Year 2017/18 Summary of Proposed Budget
Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10411
2b 17-0365 Appointment to the Fire Department Pension Board
Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10493 3 Acknowledge receipt of minutes of various boards and committees.
3a 17-0383 Library Advisory Board meeting held on January 17, 2017
Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10511
3b 17-0370 Transportation Advisory Board Meeting held on December 20, 2016
Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10498
3c 17-0387 Judicial Advisory Board meeting held on February 6, 2017
Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10515
3d 17-0391 Museum and Cultural Advisory Board meeting held on January 26, 2017
Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10519
4 Hear reports on meetings and/or conferences attended
5 Scheduling of meetings and general information
6 Adjournment.
____________________________________________________________
ITEM 2a has three different parts1. Proposed Budget Overview for Fiscal Year 2017/18 Presented by the Office of Management and Budget April 3, 2017 24 pages
Currently, a gap exists between the expected annual expenses and the forecasted available resources. Increased expenditure pressure from pension, healthcare, and the minimum wage increase has widened this gap
FY16/17 Updated Forecast shows Projected - ( 2.8 million)
FY17/18 Updated Forecast shows Estimated - (17.8 million
2. Fiscal Year 2017/18 Summary of Proposed Budget 24 pages
3. FY17/18 Proposed Budget Forecast Summary
City Council Report A 24-page document
Date: April 3, 2017
To: City Council Through: Michael Kennington, Chief Financial Officer
From: Candace Cannistraro, Management and Budget Director
Subject: Fiscal Year 2017/18 Summary of Proposed Budget
Overview of Proposed Budget
In February, the Council received an update on the financial status of the City and an overview of the forecast process. At that time, available resources were projected for FY16/17 and forecasted for FY17/18 and beyond. The cost of the current level of service was also projected for FY16/17 and forecasted for FY17/18 and beyond.
The City currently has a gap between the level of on-going revenues and the level of on-going expenses. The result is reliance on reserve balances and savings experienced during the year. In FY15/16 expenditure reductions were made to narrow the funding gap. Recent changes in the City’s contribution to the Public Safety Personnel Retirement System (PSPRS) have widened the funding gap.
Executive staff has met with each department to discuss and discern operational successes and concerns and to determine priorities for the upcoming fiscal year. The City has set a goal to align on-going expenses with on-going revenues to ensure that quality services and programs can be continued in the future. The FY16/17 budget was set without specific department reductions. Departments were asked to operate with targeted savings of 2%. This allowed for flexibility over the year to take advantage of operational savings opportunities rather than specifying reductions up front. The projected widened funding gap for FY17/18 requires City action to ensure sustainability of services.
The FY17/18 proposed budget continues the City’s commitment to providing quality services to residents in a fiscally responsible manner. City senior staff and department staff have formulated a plan that will reduce the FY17/18 projected gap by about 50%. Effort was made to maximize the financial impact while minimizing the service impact. The proposed budget modifies both the projected expenditures and revenues from the original forecast.
FY17/18 Summary of Proposed Budget Page 2
The City of Mesa is a service organization and strives for service excellence. About 73% of the General Governmental fund expenses are related to the cost of personnel who provide the services. Public safety services are the largest component. The proposed budget uses four methods of cost containment/reduction related to personnel.
• Cost containment/limiting step pay expenses • Cost minimization through civilianization of positions • Protection of core services through repurposing of positions • Elimination of positions
Limiting Step Pay Increases: Pay ranges for positions operate with minimum and maximum amounts. Movement through the pay range (step pay) is reviewed on an annual basis during an employee’s performance review. Successful performance is required for an employee to be eligible for increased pay, but the increase is dependent on funding availability. Each year, as part of the budget process, citywide funding availability is determined. During the recession, funds were not available and step pay increases were not authorized. Since FY12/13, the authorized step pay amount has been 5% and was the amount included in the forecast. The proposed budget includes a step pay amount of 3%. This budget adjustment is estimated to reduce the expenses in the General Governmental Funds by $2.4M and equates to the fully loaded costs of about 23 full-time positions.
Cost Minimization: The costs associated with sworn personnel continues to rise each year. The public safety departments have identified positions currently filled with sworn personnel whose duties could be performed by civilian personnel. Sixteen positions have been identified: 15 in the Police Department and 1 in the Fire and Medical Department. Civilian positions will be added and the sworn positions will be removed. The savings from these position conversions is about $1.0M.
The sworn employees currently performing these duties will be reassigned to other budgeted positions. The full absorption into existing vacancies may take up to a year. One-year temporary funds are included in the FY17/18 budget to cover some of these employees until they can be placed into a different position.
Repurposing Existing Staff: As funding continues to be limited, existing resources are evaluated and repurposed occasionally to maintain the City’s core services. The Fire and Medical Department has identified six sworn personnel that will be repurposed from support duties to first responder duties. This will allow for better coverage of minimum staffing and decrease the need to call in sworn personnel on overtime. The support duties currently being performed will be absorbed by other positions or will be done on an asneeded basis.
Elimination of Positions: Seventeen positions have been identified for reduction in FY17/18. One position is part-time so the full-time equivalent (FTE) amount is 16.5. Four positions (3.5 FTEs) are located in the Information Technology Department, one is in the Business Services Department and 12 are in the Police Department. Six of the police
FY17/18 Summary of Proposed Budget Page 3
positions are sworn personnel and six are civilian. All the civilian positions in the three departments are vacant. Four of the sworn positions are filled, however the employees will be reassigned to existing sworn positions when vacancies occur.
Overview of Proposed Budget
General Government Operating Budget
Restricted Funds Highlights
Transportation Related Funds.
Trust Funds Employee Benefit Trust Fund. From FY13/14 - FY16/17 $58.3 > 77M
City-wide Adjustments Impacting Budget
Capital Improvement Program (CIP) Highlights
Secondary Property Tax
Lifecycle Replacement Program
Department Highlights
No comments:
Post a Comment