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8-24-16 Handout- Van Liere- Responses to List of Questions from Stinson 2016 /2017 Budget Questions and Comments Questions and Comments: 1. 2017 Proposed Budget opening letter f/ Mr. Van Liere, pg. I - what would be the revenue reduction in dollars of a millage rate reduction equal to the millage rate of 2.6620 the "roll back" rate? Mr. Van Liere comments that "General Fund revenues exceed expenses by an amount equal to 1/10th of a mill" which is correct based on the proposed budget. However, when considering the Combined Summary of Revenue and Expenses (Introduction tab, pg. 1) expenses exceed revenue by approximately $586,000, which is a more accurate picture of the overall finances of the City. The roll-back rate is 3.1754, not 2.6620. Revenue reduction for the "FY17 roll back rate" of 3.1754 = reduction of$ 219,370 Revenue reduction for the millage rate of 2.6620 = reduction of$ 954,996 2. 2017 Proposed Budget opening letter f/ Mr. Van Liere, pg. II, Stormwater Improvements - The Seminole Road project appears to have ongoing expenses incurring when the project has not been approved or accepted as proposed by consensus. Please detail the actions being taken and justification for moving forward with this project without Commission approvals. The proposed expenditures and projects are being presented to the Commission for review and approval through the budget process as they were last year. The design work was approved by the Commission based on extensive community input and is almost complete. Once design is completed, we will bid the project out. This Commission can decide if they want to go forward or not at any time or add additional steps to the process if they like. 3. 2017 Proposed Budget opening letter f/ Mr. Van Liere, pg. II, Pay and Benefits -A 3% overall payroll increase with a 1% COLA compared to the CPI adjustment of 1%? Please explain the reasoning for recommending this budgetary item. It would be my preference for the 2016 / 2017 budget to include a 1% overall payroll increase that reflects the CPI benchmark and for a bonus program be developed whereby employees of the City of Atlantic Beach are awarded bonuses based upon City budgetary performance, department budgetary performance and individual performance with measurable metrics. Bonuses could be scheduled to be 3% if budget performance is achieved based on all factors of the approved budget or could exceed 3% if the budget is exceeded by some percentage. Metrics such as building permit turn-around and approval time tracking, the lack of any environmental or safety incidents, the number of Code Enforcement cases resolved without the need to refer them to the CEB, capital projects completed on time and under budget, etc. There are many other measurable metrics that can be identified and used as measures of success or lack thereof. I also believe each department should be included in the goal setting process to get "buy-in" from all employees for the program. The City's Budget Policy incorporates the mentioned 1% cola and 3% payroll increase when the funding is available. In order for an employee to qualify for the 3% increase they will have to have a satisfactory review by their supervisor. Those reviews are based on subjective and objective data. The type of performance based raises described is not recommended due to the small size of our City and the propensity of many of our employees doing a variety of tasks as needed with results that would be hard to track. It may work for some jobs, but not all. We believe our system is not great, but it is relatively fair to all employees. 4. 2017 Proposed Budget opening letter f/ Mr. Van Liere, pg. III - Please provide a detailed report on Pension plan investment performance and any variance from the last projection Presented to the Commission with explanations for any variance from this last projection made by the City Manager. Both pension funds are exceeding projections after ten months year to date. As of July 31st the General Plan has a return of 9.2% or $1.36M YTD compared to an annual projection of$1.185M for FY2016. and the Police Plan has a return of 9.1% or $721,190 YTD compared to an annual projection of $594,325, for the FY2016. If you would like the report delivered to the Pension Board, that is available. 5. Summary of All Funds, Introduction tab, pg. 1 - Notable is the fact that Expenditures have increased from $23.5 million dollars in 2014/2015 to a projected expenditure in 2016 /2017 of$31.5 million dollars, an approximate 50% increase in 3 years, not all of which can be attributed to capital outlay. 2015 2017 Budget Difference Personnel Services 9,067,644 10,437,834 1,370,190 Pension Increase$483K, 3 new Positions$182k, Payroll Raises FY16$192K, Payroll Raises FY17 $216K, $295k Salary Lapse Operating Expenses 10,310,196 11,740,798 1,430,602 Pension retiree payments increased $365k, Attorney costs increased $59K, Contractual • Services increase$838k Capital Outlay 2,196,414 5,344,300 3,147,886 Debt Service 739,136 2,008,190 1,269,054 Debt was refinanced in FY 15. The timing of principle payments were shifted and the first principle payment was due the first day of FY16. Transfers 1,348,210 1,975,445 627,235 23,661,600 31,506,567 7,844,967 6. Summary of All Funds, Introduction tab, pg. 5 - Grand Total of all Revenue Sources is projected to increase approximately $800,000. Does this not support a significant rollback of the millage rate? The Summary of All funds is on page 1 and shows a decrease in revenues of$282,242. This figure includes all sources of revenue. The millage is only related to Ad Valorem Tax Revenue on pg. 4 $418,137. About half of this increase is related to new construction and annexation of the Atlantic Beach Country Club. This does not support a significant rollback. 7. Summary of All Funds, Introduction tab, pg. 6 - Of the projected legal expenses FY 2015 / 2016, how much of the $175,619 can be attributed to the Gate Petroleum proposed Development dispute? As of 08.17.16, the invoices paid by the City include $47,390 paid to attorneys for Gate. 8. Summary of All Funds, Introduction tab, pg. 6 - I recommend changes to the Charter be adopted and the City Clerk's office be distinctly separated from the City Manager's office, including personnel, revenue & expenses, and budgetary planning. Charter changes are by referendum. The Clerk's Office does not generate revenues except for a few small fees but does have its own expense budget. The Clerk's budget has been included as requested by the Clerk with no changes, same as last year. If the duties were completely separated, budgets of other departments would need to be addressed. 9. Summary of All Funds, Introduction tab, pg. 9 -Trust and Agency Funds, in particular the pension funds, historically under perform and adjustments to the budget are routinely required to settle unfunded liabilities. An analysis should be completed by the City Manager's office and the Finance office that project best and worst case scenarios and associated fund impact to the 2016 /2017 Proposed Budget. Adjustments to the budget to fund the unfunded liabilities are not routine and in fact are not done at all. The budgets that are approved are based on the annual required contributions as calculated by the actuary. We pay them to perform these calculations with pension funds. We are required to make these payments and budget to do so every year. These calculations must be done by an actuary. In order to perform these calculations, we would need to know what you think the best and worst case scenario is. No budget modifications are made based on performance of the funds 10. Combined Summary of Revenues and Expenses, Governing Body tab, pg. 10 - Please explain the projected increase in Operating Expenses for the City Commission. recommend the budget be amended to include individual budgetary considerations attributable to the Commission for travel & training, legal counsel, charges for use of City facilities such as Adele Grage, etc. Allow each Commissioner to plan their coming year expenses and use this budgetary line item as a measurable metric of performance. Travel was increased $3,500; Training and Membership increased $2,900. These increases are estimates based on CY usage. These increases were also included at the request of the Mayor because he wants the Commissioners to get more involved and go places. If the Commission would like us to set up individual accounts, we can do this. 11. City Commission, Governing Body tab, pg. 11 -Where did this Mission Statement originate? Is there any interest in a revision? I will ask the City Clerk to find the origin of the Mission Statement. The mission statement is open to revision at any time by the Commission. The budget book has had the same statement for over ten years. A new one was adopted in 2015 and should have been updated in the book. We will replace it. The Mission Statement adopted is: The City of Atlantic Beach is responsive in providing the highest levels of service, safety and access while maintaining our infrastructure, vast network of parks, natural, and fiscal resources. We are committed to preserving our small beach community way-of-life for future generations. 12. City Clerk, City Administration tab, pg. 14-Why is the City Clerk responsible for "maintenance" of the City website? Why is IT not assigned this responsibility?A major update of the website is recommended to improve the user interface and accessibility to City information. Additionally, it is recommended that social media utilization be made the highest of priorities when updating the website. The City Clerk's office is responsible for the maintenance of the web pages for the City Clerk and for the City Commission. Maintenance in this case is content maintenance. The web site software used is designed to have each department maintain the pages for their own department. IT manages the overall website contract with Civic Plus, and trains new users in its use. On the topic of social media, both the Recreation and Police departments maintain Facebook pages for their departments. The Recreation site has been active for over 5 years, keeping citizens aware of upcoming events, and posting photos from those events. The Police Facebook page is very active and we are considering introducing one for the Public Works Department with a staffing change. 13. City Clerk, City Administration tab, pg. 14 - Did the City Clerk set the "Key Objectives" listed on this page? Yes 14. City Clerk, City Administration tab, pg. 15 -An overall 9% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? There are many factors that affect Current Year Estimates. Current year estimates included lapse in salary when positions are vacant. Current staffing level and salary is equal to $147,909 before the 1% cola and 3% pay increase which totals $151,455. Total increase of wages $3,546 equals 2.39% (one employee isn't eligible for pay raise for not being employed for the six month minimum). There is no 1% CPI benchmark used. 15. City Manager, City Administration tab, pg. 16 - Key objectives include: "Ensure that the handling of citizen complaints is done in an efficient, timely and professional manner"; "Communicate with the citizens and the press to maintain an open and responsive atmosphere"; and, "Carry out the goals, objectives and policies established by the City Commission". While these are lofty goals, they are by no means measurable as stated. These objectives must include metrics such as responding to complaints within 24 hours, including follow up telephone calls from the City Manager, or appropriate Department Heads, monthly press conferences held by the City Manager to answer questions, highlight successes, and detail pending actions to be undertaken by the City, and Letters of Accountability detailing the goals, objectives and policies established by the City Commission prepared by the City Manager that include time lines, required resources and effective communication plans of such goals, objectives and policies to be and presented to the City Commission at each regularly scheduled Commission meeting. Suggestions Noted 16. City Manager, City Administration tab, pg. 17 -An overall 5% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? The FY16 current year estimate is a little low at $181,969 and should be higher. FY17 19. Information Technology, City Administration tab, pg. 21 -An overall 10.6% increase in wages budget pre 1% cola and 3% raise equals $185,598. FY17 budget pre 1% cola and 3% raise equals $190,942. Difference of$5,344 equals 2.87%. 17. Finance and Administration, City Administration tab, pg. 19 -An overall 1% increase in wages projected for this office. This office would meet the benchmark CPI adjustment of 1%. Noted 18. Information Technology, City Administration tab, pg. 20 - Key objectives include migrating permitting, licensing and code enforcement from One Solution to Trakit. This enterprise software solution continues to plague the City and should be reevaluated to determine the cost to the City thus far due to selecting this software compared to more easily implemented solutions available to the City. Notable, no objective is listed that would include a software solution for managing City Commission (or other public boards, committees and groups) agendas that would allow each participant to manage their own additions and deletions to agendas while reducing the City Clerk's burden for managing agendas on behalf of each group. The TRAKiT implementation is underway - actually 1/3 of the way to Go-Live - and is progressing quite well. IT has worked with the Clerk's office on selecting agenda preparation software for the past 3 years. We have been included in a number of demos and webinars. The final selection of a product rests with the City Clerk. projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? FY17 budget pre 1% cola and 3% raise equals $181,979. FY17 budget pre 1% cola and 3% raise equals $187,262. Difference of$5,283 equals 2.90%. 20. Human Resources, City Administration tab, pg. 22 - Please detail the following: Loss prevention & control methods currently being utilized and planned improvements or methodology changes; Training Needs Assessments conducted and training resources identified plans FY 2016/2017. We are revamping our Safety Committee to include a complete rewrite of the Safety Manual. Both the Police Department and the Public Works Department have their own safety and risk programs, in addition to the City's, where they look at incidents and best practices. We implemented City-wide training for supervisors last year, and we will continue that program, as well as addressing training needs on an on-going basis. 21. Human Resources, City Administration tab, pg. 23 -An overall 2% increase in wages projected for this office. This office could be considered to meet the benchmark CPI adjustment of 1%. One of the employees in this division is topped out in the pay range. This is why it is less than 3%. There is no 1% CPI benchmark 22. General Government, General Government tab, pg. 27 - Issues, Trends and Highlights. What is the cost for the maintenance division formed and described in this section? We're these expenses originally charged to a separate cost center or group and now being charged to General Government? If yes, then where would the corresponding reduction in wages be reflected in this proposed budget? The estimated cost of the maintenance division is $213,765. These costs prior to FY15 were spread out among many budgets and hard to track. They were consolidated into one cost center so they could be managed better. The largest of these costs is the contract for custodial services citywide. There is not a reduction in wages in other divisions in FY2017 because this change occurred in FY2014-15 with the addition of a building maintenance technician position. 23. General Government, General Government tab, pg. 28 -An overall 23% increase in wages projected for this office. If the maintenance team addition is a result of booking these costs to General Government, what percentage of the 23% indicated on this page can be attributed to wage increases not related to the addition of the maintenance team?And if that percentage of wage increase not attributable to the addition of a maintenance team exceeds 1% , would not the benchmark CPI adjustment of 1% be applicable? The 2.55 employees' salary before increase equals $97,519. The salary after increase equals $100,631. Increase equals $3,112 or 3.19%. The Building Maintenance Tech's mid point is above his current salary. This resulted in the increase being great than 3%. 24. Building Maintenance, General Government tab, pg. 30 -An overall 58% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? The current year estimate on page 30 of$58,686 is low. This needs to be corrected and a revised schedule will be provided at the meeting. Also, the salaries and expenses of the Maintenance Division are included in those of General Government as a separate division. We will provide a schedule showing them separate for clarity on this. The 2.3 employees' salary before increase equals $89,479. The salary after increase equals $92,306. Increase equals $2,827 or 3.15%. The Building Maintenance Tech's mid point is above his current salary. This resulted in the increase being great than 3%. 25. Convention Development Tax Fund, General Government tab, pg. 31 - These restricted funds are described in the text. But, pg. 32 indicates annual transfer to the capital improvement fund. These transfers need further explanation. Perhaps a good use of these funds might be an education program for residents and visitors held at various community centers and local resorts that inform attendees of the fragile nature of the original residents of Atlantic Beach and how not to impact the turtles negatively. The funds were transferred to the capital improvement fund which are authorized for park improvement projects. This fund is primarily utilized when projects have multiple funding sources. As your recommendation could be used to promote tourism or educate visitors, it would be deemed an appropriate use of funds. We could redesign all signage to standardize it and include sea oat protection and surf advisory information as well. 26. Convention Development Tax Fund, General Government tab, pg. 32 - Please explain the $40,000 Deck and Bike Rack indicated in the 2016 /2017 Proposed Budget. There is a drainage area in the shopping center at the corner of 3`d St and Atlantic Blvd. This open drainage area could be covered, (decked over), and a multi-use area erected with a large area for bike racks created. The intent is to give this area an additional purpose that better serves citizens. The feature will still act as a drainage for run off. This project is a carryover item requiring a contract on the use of the property by the City. 27. Half-Cent Discretionary Sales Tax Fund, General Government tab, pg. 33 - These funds are restricted use as described. Issues, Trends and Highlights, item number six. Please detail the justification for the $75,000 six-bay vehicle & equipment storage building. Where did this project originate? This project idea was from the City Manager. It is a follow up to the effort to organize the Public Works yard. Public Works has made progress with this effort, but in my opinion they still need to secure valuable equipment and protect the equipment from the elements when not being used. What is the impact of the City of Jacksonville potentially continuing to collect this tax but applying the tax collected to their pension liabilities? If the proposed budget is correct and the City of Atlantic Beach loses this revenue, then there will be $1,265,000 in unfunded capital projects creating a shortfall in the coming year. How does this budget accommodate such a shortfall? The revenues we are currently collecting will continue until 2030. These funds are restricted for Capital Projects and will continue to be until the program expires. Jacksonville is proposing to continue that sales tax for pensions after 2030. Looking to the future, the City has utility debt that is scheduled to be paid off about the same time. This will enable the City to continue with utility projects after the expiration of the tax. This additional spending capacity could be used to offset the loss of this revenue source. 28. Governmental Capital Project Fund, General Government tab, pg. 39 - I would recommend the City Commission provide direction to the City Manager about prioritizing capital projects and scheduling to allow the Commission to continually evaluate capital projects as the fiscal year passes. Such a tool would allow the Commission to either direct the City Manager to accelerate or abandon projects throughout the fiscal year based on total revenue budget performance. The City revenue history is usually predictable and is not often adjusted midyear affecting the priorities of spending on capital items. Although sometimes we have more on our plate than we can accomplish, we try to get to all of the projects during the year they are budgeted. Sometimes they are delayed. We continually try to go forward unless told otherwise such as with Seminole Road or the Sidewalk project. Provide detailed justification and explanation for the Marsh Preserve Path. The Marsh Preserve Path is in the FY2016 approved budget and partially grant funded. This project is underway and nearing completion. The project provides a walking trail separate from the road for public safety and was a priority of the previous commission and part of the Marsh Master Plan. 29. Public Works Combined Summary of Revenue and Expenses, Public Works tab, pg. 80 - Notable, Public Works as a cost center does not generate enough in revenue to cover expenses, except for the consideration of capital outlay charged to Public Works. The bulk of this revenue / expense deficiency is based on the Storm Water Utility Fund having over $1.3M in capital outlay compared to the FY16 estimate. The Sanitation and Stormwater divisions are the only two enterprise operations with rates intended to recover expenses. The remaining divisions do not charge citizens for services they perform such as street maintenance public works administration or fleet maintenance. These costs are partially recovered by internal service charges and through Gas Taxes. 30. Public Works Administration, Public Works tab, pg. 81 - Define the metrics that could be used to evaluate Public Works administration performance related to plan reviews, permit management software. Number of permits approved and denied Average Turnaround time Deadlines met—set maximum number of days Errors found Decisions challenged Time spent Quality and quantity of comments returned. As Built 31. Public Works Administration, Public Works tab, pg. 82 -An overall 10% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? There is no 1% CPI benchmark. There was turnover included in the FY16 estimate making it low. FY17 budget pre 1% cola and 3% raise equals $269,024. FY17 budget pre 1% cola and 3% raise equals $277,450. Difference of$8,426 equals 3.13%. 32. Streets and Maintenance, Public Works tab, pg. 83 - Please provide details for the ten year street maintenance plan, the continued beautification improvements, the documentation of roadway status in the GIS database and continued improvement of signs, sidewalks and ROWs. Street paving schedule based on the rating system is updated periodically based on visual inspection. This is to be presented by Public Works at the workshop. Signs are replaced as needed and sidewalk repairs are as needed on a pay as we go basis. 33. Street and Maintenance, Public Works tab, pg. 84-An overall 12% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? The budget reflects a 12% decrease. A replacement schedule changing the current year estimate will be distributed at the workshop correcting this. See question 22. 34. Local Option Gas Tax, Public Works tab, pg. 86 - Please remark and provide details on the "Contract Services" operating expense category. This category has increased from approximately $200,000 FY 2014/2015 to a projected $320,000 FY 2016 /2017. What is driving this significant increase, what is the manpower required to perform this work and what efforts has the City Manager's office implemented to regain control of this expense. This budget is for resurfacing of roads as determined by the pavement management rating system used by Public Works. The work is done annually by a contractor and the amount of the budget is dictated by available funds in the Gas tax Fund. This year we are projected to have some excess funds so they are being budgeted to increase the paving budget and some to the General Fund to help support the Streets Division of the General Fund. These costs are intentionally increased to resurface more roads this year and to address some of the specific complaints we received this year. We are in control of these costs. 35. Sanitation Fund, Public Works tab, pg. 87 - How is Public Works monitoring the contractor's performance for contractual compliance? Is Public Works using measurable criteria to evaluate contractor compliance? Please provide copies of these contracts for the Commission to review. How can Public Works ensure and improve emergency management readiness in the event the emergency management plan is initiated. 36. Sanitation Fund, Public Works tab, pg. 89 -An overall 0% increase in wages is projected for this office. This office could be considered to meet the benchmark CPI adjustment of 1%. There is no 1% CPI benchmark. Noted 37. Storm Water Utility, Public Works tab, pg. 90 - With the recent flooding events and even more recent, how will Public Works improve the storm water system to handle future events. What plans will Public Works make for emergency equipment such as rental pump capacity or other necessary equipment required to prevent any resident from experiencing flooding within their homes? Please provide a details plan and schedule of storm water system maintenance including coordination with Neptune Beach to the Commission for review. Sent to Public Works Director. 38. Storm Water Utility, Public Works tab, pg. 92 -An overall 17% increase in wages is projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? There is no 1% CPI benchmark. The current year estimate does not reflect full staff and therefore shows a larger increase than the raise would be by itself. FY17 budget pre 1% cola and 3% raise equals $134,285. FY17 budget pre 1% cola and 3% raise equals $138,899. Difference of$4,614 equals 3.4%. 39. Fleet Maintenance, Public Works tab, pg. 93 - Please provide a copy of the contract referenced to the Commission for review and detail metrics used to evaluate contractor compliance with the contract. Comment f/the 15th of August 2016 Budgetary Planning meeting 1. Why does the City need a jet-ski? Life guard's use it as a tool for ocean rescue 2. What is the justification for the purchase of a Polaris? What is the status of the one currently owned and in use? New Polaris will be used by lifeguards as a means to reduce or eliminate the need to drive a truck on the beach. Currently Polaris is used by PW as a means to reduce or eliminate the need to drive a truck on the beach. 3. Mr. Van Liere was more than hesitant to answer Mayor Reeve's question of what is the percentage of reserve projected to end FY 2015/2016? What would that dollar amount be? I think the question might be better stated as, is the reserve balance increasing or decreasing From 2015 /2016 to 2016 /2017? See attached schedule. 4. Notable no Commissioner's input was included in the budgetary planning. Why? Doesn't not including such input just increase the workload of the City Manager's office to revise the budget based on Commission direction? Input is welcome at any time. Of course the later in the process it is received, the harder it would be to get consensus to change anything. 5. The City Manager stated that all raises were calculated and applied that the 3% projected payroll increase would be made using the midpoint of pay grade ranges. Mr. Van Liere then stated that 1% COLA would be calculated and applied based on the midpoint of each pay grade range and that the 3% projected payroll increase would in actuality be 3% of the 1%. This is not accurate and is misleading. Effectively, the 1% increase in pay grade ranges is made and then each employee would receive a 3% increase based on whatever pay grade each particular employee is paid based on. An attempt was made to describe the effect of the COLA on an employee's raise. A raise on a midpoint raised by 1% vs a raise on a midpoint with no 1% increase would be different by 3% of a 1% increase. Example: Raise Example Base With COLA Midpoint $ 40,000 $ 40,400 Percent Raise 3.00% 3.00% Dollar Raise $ 1,200 $ 1,212 Difference $ 12 Percent Difference 0.030% 6. Commissioner Hill asked a particularly important question. What would be the impact on this budget proposal of losing the two litigations currently facing the City, Beach Diner and the Cloister Condominium. At this point this is not known. 7. Notable was the recurring IT issues with presentations and equipment. The projection system in the chambers requires a person to sit at the Clerk's station to run the overhead. No one was at that location. Controlling the mouse from the floor is problematic, and we are working on a solution. 8. There is no consideration for legal fees based on review of the Land Development Regulations. Some consideration should be included in the approved budget. There is $155,000 in the legal budget and $10,000 in the Planning Departments budget. There is also a $50,000 amount set aside for related items. 9. What has been the cumulative cost incurred based on the Gate Petroleum development dispute? As of 07/31/2016, $50,665 has been invoiced to attorneys on behalf of Gate Petro. 10. A website "refresh" that costs $25,000 is excessive in my opinion. The design firms considered should be reassessed and perhaps other firms should be considered. Our website provider has given us a range of plans to update our site, ranging in cost from under$15,000 to $25,000. We can select a pricing level we're comfortable with if we elect to pursue this project. This was not included in the budget. 11. What would be the cost and what obstacles would be faced to bring the Atlantic Beach Police Department to full staffing. In addition to the two officers included, we would need two more plus cars and related equipment. $238,000 is a rough estimate and would have to be phased in. 12. I would like to see Parks & Recreation implement a sea turtle education program using Adele Grage and perhaps local resorts to educate citizens and visitors to the possible impact they could have on our sea turtle nesting success. Noted 13. I understand the City Manager's comments about comparing current year projections to this budget proposal. However I do not agree that prudent budgeting accommodates what the budget has a capacity for, but should reflect what is actually believed to be achievable. Full employment is achievable, however not likely. This ensures we do not have to let people go or cut back on services mid-year if fully employed. This has always been one of our budget guidelines.