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Agenda Item 7BAGENDA ITEM 4 713 MAY 13,201-1 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Budget Ordinance # 20 -13 -123 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OC'T'OBER 1, 2012 AND ENDING SEPTEMBER 30, 2013, AND PROVIDING AN EFFECTIVE DATE. SUBMITTED BY: Nelson Van Liere, Finance Director DATE: Api l 12, 2013 STRATEGIC PLAN LINK: Unions. Negotiations BACKGROUND: At the conclusion of union negotiations for both unions and the subsequent decisions on pay related budget items, the City proposes to amend the 2013 operating budget to fund the following items: . A 1 % raise to all employees. The budget ordinance adds $29,924 to fund all raises and the payroll takes that are associated with it. For union employees, the funds represent a partial year amount. 2. The Police employees buy -down to 680 hours of leave for $38,366. 3. The General employee buy -down to 680 hours of leave for $64,372 4. The City match for the transfer of Employee contributions to the defined contribution plan of $66,638. 5. A small $429 decrease in the employee contributions to the General Employe: Retirement System representing the reduction for those employees no longer contributing off -set by an increase of 1 % by those that are remaining. 6. Additional legal fees for union negotiations of $32,300. 7. Creation of the General Employee Defined Contribution Plan with the initial contribution of $66,638. BUDGET: The above items increase the total operating budget expenses by $231,171. The !City had already included in the budget $129,748 for leave cash -ins of which $49,815 has already been used. This left $79,933 available to off -set the items proposed above. Therefore the net increase to the City's expense budget is $151,238. RECOM MEN DATION:Approve Ordinance #20 -13 -123 ATTACHMENTS: Schedule A Pay and Leave Detail REVIEWED BY CI'T'Y MANAGER: AGENDA ITEM # 713 MAY 13, 2013 ORDINANCE NO. 20-13-123 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Charter of the City of Atlantic Beach requires that the City Commission approve all budgetary increases and transfers at the fund level, and WHEREAS, the nature of budgetary systems and those day -to -day decisions affecting such budgetary systems require adjustments from time -to -time, and WHEREAS, the City adopted the original budget for 2013 without including funds for employee raises due to pending union negotiations at the time. Those raises are included in this amendment totaling $29,924 city -wide, and WHEREAS, this proposed ordinance funds the City negotiated buy -down of personal leave balances to a maximum of 680 hours in conjunction with eliminating the ability for employees to cash in unused personal leave in the future. This buy -down was not budgeted, but was partially off -set by the unused budget that was approved for the employee selected cash -in program. The original budget for cash -ins of $129,748, less the City mandated buy -down to 680 hours of $102,739 and less the December budgeted cash -ins of $49,815 leaves a budget shortfall of $22,806 city -wide, and WHEREAS, the City hired a labor attorney to assist the City Manager with labor negotiations that was not budgeted. This proposed ordinance adds an additional $32,300 to the General Fund legal budget, and WHEREAS, the City has also agreed to transfer the employee contributions to date of those employees not vested in the General Employee Retirement System defined benefit plan into a defined contribution plan with interest together with a 100% City match as a way of closing the Defined Benefit plan to all unvested employees hired after September 2008 and future general employees. This proposed ordinance includes $66,638 for that purpose. The ordinance also includes a small change in the employee contributions to the Defined Benefit plan as a result of the employees being removed from that system, and WHEREAS, this proposed ordinance creates a budget for the revenues and expenses of the new trust fund to reflect the initial deposit of the City's matched contributions, but not include at this time a budget for the City's match of employee contributions made between implementation and the end of the year. This will be addressed with the year end adjustment due to the inability to predict participation at this time. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; 1. The Fiscal Year 2012/2013 Budget to be amended as follows: GENERAL FUND Expenses: Salary and Benefits of all departments per attached Schedule A City Administration Legal Division Professional Services Non - Departmental Transfer to General Employee Profit Sharing Plan - match Total Expenses: Fund Balance AGENDA ITEM # 713 MAY 13, 2013 $98,312 32,300 66,638 $197,250 ($197,250) PUBLIC UTILITIES — WATER AND SEWER UTILITY FUNDS COMBINED Expenses: Salary and Benefits of all departments per attached Schedule A $13,878 Fund Balance: (13,878) SANITATION FUND Expenses: Salary and Benefits per attached Schedule A ($280) Fund Balance: $280 BUILDING CODE ENFORCEMENT FUND Expenses: Salary and Benefits per attached Schedule A $3,125 Fund Balance: ($3,125) STORM WATER UTILITY FUND Expenses: Salary and Benefits per attached Schedule A $4,325 Fund Balance: ($4,325) GENERAL EMPLOYEE RETIREMENT TRUST FUND Revenues: Employee Contributions — Those leaving the system ($7,906) Employee Contributions — Those to pay I% more $7,477 Total Revenues ($429) Expenses: Pension Contribution Refunds — Transferred to 401 $66,638 Fund Balance ($67,067) GENERAL EMPLOYEE DEFINED CONTRIBUTION PLAN Revenues: Contributions from City Fund Balance 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this day of Passed by the City Commission on second and final reading this Mike Borno Mayor / Presiding Officer Approved as to form and correctness: ATTEST: Alan C. Jensen, Esquire City Attorney day of Donna L. Bartle, CMC City Clerk AGENDA ITEM # 713 MAY 13, 2013 $66,638 $66,638 2013. 2013. AGENDA ITEM # 713 MAY 13, 2013 SCHEDULE A Detail for Budget Ordinance 20 -13 -123 Pay and Leave Cash - In Detail Schedule Salary& Normal Police General 1% All City Match Total Leave Cash Leave Cash Leave Buy Leave Buy Employee Contribution Budget Account Number Budget Available December Down Down Raises to 401 Adjustment City Manager 1- 1002 - 512.12 -00 Salary $ 1,476 $ 1,476 1- 1002 - 512.15 -00 Leave Cash In $ 7,000 $ 8,563 $ 1,563 1- 1002 - 512.21 -00 FICA $ 536 $ 444 $ 113 $ 22 $ 3,061 Finance 1- 1003 - 513.12 -00 Salary $ 3,108 $ 3,108 1- 1003 - 513.15 -00 Leave Cash In $ 11,600 $ 6,673 $ 3,803 $ (1,124) 1- 1003 - 513.21 -00 FICA $ 887 $ 510 $ 291 $ 238 $ 152 1- 1003 - 513.22 -00 Contribute 401 $ 4,722 $ 4,722 $ 6,858 Planning 1- 1005 - 500 -12 -00 Salary $ 1,272 $ 1,272 1- 1005 - 500 -15 -00 Leave Cash In $ - 1- 1005- 500 -21 -00 FICA $ 97 $ 97 $ 1,369 Code Enforcement 1- 1006 - 500 -12 -00 Salary $ 107 $ 107 1- 1006 - 500 -15 -00 Leave Cash In $ - 1- 1006 - 500 -21 -00 FICA $ 8 $ 8 1- 1006 - 500 -22 -00 Contribute 401 $ 6,269 $ 6,269 $ 6,384 City Cleric 1- 1007 - 500 -12 -00 Salary $ 741 $ 741 1- 1007 - 500 -15 -00 Leave Cash In $ 1,175 $ 11,731 $ 10,556 1- 1007 - 500 -21 -00 FICA $ 90 $ 897 $ 57 $ 864 1- 1007 - 500 -21 -00 FICA $ 2,386 $ 2,386 $ 14,547 General Government 1- 1009 - 513.12 -00 Salary $ 745 $ 745 1- 1009 - 513.15 -00 Leave Cash In $ - 1- 1009 - 513.21 -00 FICA $ 57 $ 57 $ 802 Human Resources 1- 1010 - 513.12 -00 Salary $ 1,105 $ 1,105 1- 1010 - 513.15 -00 Leave Cash In $ 3,440 $ 1,507 $ (1,933) 1- 1010 - 513.21 -00 FICA $ 263 $ 115 $ 85 $ (63) $ (891) Information Technology 1- 1011 - 513.12 -00 Salary $ 869 $ 869 1- 1011 - 513.15 -00 Leave Cash In $ - 1- 1011 - 513.21 -00 FICA $ 66 $ 66 $ 935 Painters 1- 1012 - 513.12 -00 Salary $ 90 $ 90 1- 1012 - 513.15 -00 Leave Cash In $ 300 $ (300) 1- 1012 - 513.21 -00 FICA $ 23 $ 7 $ (16) $ (226) Police Admin 1- 2001 - 521.12 -00 Salary $ 883 $ 883 1- 2001 - 521.15 -00 Leave Cash In $ 4,000 $ 700 $ 792 $ (2,507) 1- 2001 - 521.21 -00 FICA $ 306 $ 54 $ 61 $ 68 $ (123) 1- 2001 - 521.22 -00 Contribute 401 $ 15,116 $ 15,116 $ 13,369 Police Patrol 1- 2002 - 521.12 -00 Salary $ 3,033 $ 3,033 AGENDA ITEM # 7B MAY 13, 2013 1- 2002 - 521.15 -00 Leave Cash In $ 24;320 $ 9,733 $ 35,640 $ 21,053 1- 2002 - 521.21 -00 FICA $ 1,860 $ 745 $ 2,726 $ 232 $ 1,843 $ 25,928 Police Detectives 1- 2003 - 521.12 -00 Salary $ 275 $ 275 1- 2003 - 521.15 -00 Leave Cash In $ 1,700 $ (1,700) 1- 2003 - 521.21 -00 FICA $ 130 $ 21 $ (109) $ (1,534) Dispatch 1- 2004 - 521.12 -00 Salary $ 557 $ 557 1- 2004 - 521.15 -00 Leave Cash In $ 8,476 $ (8,476) 1- 2004 - 521.21 -00 FICA $ 648 $ 43 $ (605) 1- 2004 - 521.21 -00 Contribute 401 $ 11,766 $ 11,766 $ 3,242 Animal Control 1- 2005 - 521.12 -00 Salary $ 165 $ 165 1- 2005 - 521.15 -00 Leave Cash In $ - 1- 2005 - 521.21 -00 FICA $ 13 $ 13 1- 2005 - 521.22 -00 Contribute 401 $ 1,178 $ 1,178 $ 1,356 Scool Crossing Guards 1- 2006 - 521.12 -00 Salary $ 101 $ 101 1- 2006 - 521.15 -00 Leave Cash In $ - 1- 2006 - 521.21 -00 FICA $ 8 $ 8 $ 109 Crime Suppression 1- 2007 - 521.12 -00 Salary $ 391 $ 391 1- 2007 - 521.15 -00 Leave Cash In $ - 1- 2007 - 521.21 -00 FICA $ 30 $ 30 $ 421 Life Guards 1- 5001 - 541.12 -00 Salary $ 1,588 $ 1,588 1- 5001 - 541.15 -00 Leave Cash In $ - 1- 5001 - 541.21 -00 FICA $ 121 $ 121 $ 1,709 Public Works Administration 1- 5001 - 541.12 -00 Salary $ 1,818 $ 1,818 1- 5001 - 541.15 -00 Leave Cash In $ 6,500 $ (6,500) 1- 5001 - 541.21 -00 FICA $ 497 $ 139 $ (358) $ (5,040) Public Works Streets 1- 5002 - 541.12 -00 Salary $ 823 $ 823 1- 5002 - 541.15 -00 Leave Cash In $ 100 $ 62 $ (38) 1- 5002 - 541.21 -00 FICA $ 8 $ 5 $ 63 $ 60 1- 5002 - 541.22 -00 Contribute 401 $ 13,658 $ 13,658 $ 14,504 Parks and Recreation Admin and Activities 1- 6010 - 572.12 -00 Salary $ 1,186 $ 1,186 1- 6010 - 572.15 -00 Leave Cash Inn $ 3,500 $ 1,420 $ 8,237 $ 6,157 1- 6010 - 572.21 -00 FICA $ 268 $ 109 $ 630 $ 91 $ 562 1- 6010 - 572.22 -00 Contribute 401 $ 870 $ 870 $ 8,775 ParkslYlaintenance 1- 6020 - 572.12 -00 Salary $ 880 $ 880 1- 6020 - 572.15 -00 Leave Cash In $ 2,700 $ 442 $ (2,258) 1- 6020 - 572.21 -00 FICA $ 207 $ 34 $ 67 $ (106) 1- 6020 - 572.22 -00 Contribute 401 $ 4,119 $ 4,119 $ 2,634 Total General Fund S 80,534 S 31,116 S 38,366 S 26,443 S 22,837 S 60,084 S 98,312 Water Plant 400 - 5502 - 533.12 -00 Salary $ 1,283 $ 1,283 400 - 5502 - 533.15 -00 Leave Cash In $, 8,370 $ 4,237 $ (4,133) 400 - 5502 - 533.21 -00 FICA $ 640 $ 324 $ 98 $ (2I8) AGENDA ITEM # 7B MAY 13, 2013 Sewer Collection 410 - 5506 - 535.12 -00 Salary $ 917 $ 917 410 - 5506 - 535.15 -00 Leave Cash In $ 10,737 $ 4,693 $ 10,019 $ 3,974 410 - 5506 - 535.21 -00 FICA $ 821 $ 359 $ 766 $ 70 $ 374 $ 5,265 Sewer Treatment Salary $ (3,068) Water Distribution Salary $ 2,008 $ 2,008 400 - 5504 - 533.12 -00 Salary $ 819 $ 819 400 - 5504 - 533.15 -00 Leave Cash In $ 2,250 $ 2,979 $ 729 400 - 5504 - 533.21 -00 FICA $ 172 $ 228 $ 63 $ 119 400 - 5504 - 533.22 -00 Contribute 401 $ 2,387 $ 2,387 $ 4,055 Total Water Utility Fund S 11,432 S 7,768 S - S - S 2,263 S 2,387 S 986 Sewer Collection 410 - 5506 - 535.12 -00 Salary $ 917 $ 917 410 - 5506 - 535.15 -00 Leave Cash In $ 10,737 $ 4,693 $ 10,019 $ 3,974 410 - 5506 - 535.21 -00 FICA $ 821 $ 359 $ 766 $ 70 $ 374 $ 5,265 Sewer Treatment Salary $ 989 $ 989 410 - 5508 - 535.12 -00 Salary $ 2,008 $ 2,008 410 - 5508 - 535.15 -00 Leave Cash In $ 23,580 $ 3,441 $ 25,216 $ 5,076 410 - 5508 - 535.21 -00 FICA $ 1,804 $ 263 $ 1,929 $ 154 $ 542 $ 7,627 Total Sewer Utility Fund S 36,942 S 8,756 S - S 37,930 S 3,149 S - S 12,892 Storm Water 470 - 0000 - 524.12 -00 Salary $ 527 $ 527 470 - 0000 - 524.15 -00 Leave Cash In $ - 470- 0000 - 524.21 -00 FICA $ 40 $ 40 470 - 0000 - 524.22 -00 Contribute 401 $ 3,758 $ 3,758 Total Storm Water fund S - $ - S - S - S 567 S 3,758 Building 455- 1008 - 524.12 -00 Salary $ 989 $ 989 455- 1008 - 524.15 -00 Leave Cash In $ 480 $ 2,021 $ 1,541 455- 1008 - 524.21 -00 FICA $ 37 $ 155 $ 76 $ 194 455- 1008 - 524.22 -00 Contribute 401 $ 408 $ 408 Total Building Fund S 517 S 2,176 S - S - S 1,065 S 408 Sanitation 420 - 0000 - 524.12 -00 Salary $ 40 $ 40 420 - 0000 - 524.15 -00 Leave Cash In $ 300 $ (300) 420- 0000 - 524.21 -00 FICA $ 23 $ 3 $ (20) Total Sanitation $ 323 S - S $ - S 43 S - I S (280) Grand Total $ 129,749 S 49,817 S 38,366 $ 64,372 $ 29,924 S 66,638 1 S 119,368