041510 QUALITY ORGANIZATION PRESENTATIONi
yg --
r
9,~
S
~~
w
Budget
Workshop
FY 2010-11
April 15, 2010
Quality Organization
Quality Organization
`~~~~'~~ _ FY 2009 FY 2009-10 FY 2010-11
Quality Organization Actual Adjusted Proposed Change
Budgeted Expenditures* $ 83,201,763 $ 85,892,095 $ 83,875,479 -2.35%
FTEs*
474.45
477.51 445.48 -6.71
5.7% of Quality Organization
Total
* Excludes the City Treasurer and Commissioner of the Revenue
• Business Area includes City Attorney, City Auditor, City
Clerk, City Manager, City Real Estate Assessor, City
Treasurer*, Commissioner of the Revenue*,
Communications and Information Technology, Finance,
General Registrar, Human Resources, Management
Services, Municipal Council and Non-Departmental
Departments
• City Council Goals:
- Create a financially sustainable City providing
excellent services
• Fee/Tax Increases:
- Real Estate Tax from 89C to 92G per $100 of assessed
value
- Personal Property Tax from $3.70 to $3.80 per $100 of
assessed value
- Special Event Permit Fees
- Parking Fees
Operating
Budget
*The City Treasurer and the Commissioner of the Revenue will be presenting on April 27th with the other Constitutional Officers. ~
Major Revenues:
Real Estate
Personal Property
Fees and Charges
- Parking
- Special Events
Quality Organization
Regional Participation
- Eastern Virginia Medical School
- Hampton Roads Economic
Development Alliance
- Hampton Roads Planning District
Commission
- Hampton Roads Military and
Federal Facility Alliance
Community Organization Grants
Ongoing
- Beach Health Clinic
- Foodbank of Southeastern Virginia
- Endependence Center, Inc.
Incentive
- Eliminated in FY11 with related staff
position
City Attorney
^ City Auditor
City Clerk
City Manager
^ Real Estate Assessor
Quality Organization
_ -. n s~i
^ Communications and Information Technology
^ Finance
General Registrar
^ Human Resources
Management Services
Municipal Council
^ Cultural Affairs
Strategic Growth Office
^ Other Non-Departmental
8.
L
3
8%
r
v
BUR t~A~t~~~
Human Resources
o~` ~~ ~
0
,; ~~
U ~
-~~~~ ~-~ 2 w~ u m a n e s o u r t e s
2o~q r G~2
q~ O~
5
S OF pUR Np~tipN
Learning & Development
HR Police Services
Occupational Health & Safety
Total
FY11 Budget
Operations
19% ~-
10.5 $798,243
6 $401,840
17.63 $1,179,884
$694,028 $678,009 6 $570,445
$87,523 $86,139 1 $90,727
$1,120,692 $1,159,259 12 $1,116,890
$4,376,505 $4,536,071 53.13 $4,158,029
Personnel
81%
8 -$162,426
5 -$43,836
16 -$26,435
5
1
11
46
-$107,564
$4,588
-$42,369
-$378,042
5
Director's Office $981,387 $960,669
Employee Relations $384,809 $445,676
Staffing & Comp. Services $1,108,066 $1,206,319
Human Resources
15% Target Reduction
a a
Diversity and Community Relations
Program Support Services
Professional Services
ELearning
Organizational Learning & Development -Efficiency
Total Reduction
Reduction Criteria:
-Elimination of Vacancies
-Elimination of Programs
-Reduction within Programs
-$145,339 -2.00 Partial
-$159,431 -4.13 Partial
-$284,968 -4.00 No
-$20,703 No
-$5,471 No
-$683,863 -11.13
In total, the final Human Resources Department
budget was reduced 8.3%.
Return To Work -$67,951 -1.00 Yes
~~4~`N~, ~ ~~
~, ~r7
O~ ~'C,~
~-~-~- ~~ ~~ u m a n eso u rtes
r ~ ~ ~ -~
°{" 9
~- s ^_ ~uR NAj~aNS
FY11 Department Initiatives
-Quality of Work Life Member Survey
-Exit Interview Process
-Performance Management System
-Injury Management
-Leadership Development Training
r
v
BUR t~A~t~~~
Communications and
Information Technology
Communications and
Information Technology
Applications Support
Systems Support
Telecommunications
Geospatial
Information Services
Technology Project
Management Office
6,116, 503
7,163,358
1,812,163
1, 448, 2 31
468,232
6,873,101
7,595,634
4,154,334
1, 664, 680
585,377
49 6,926,700
43 8,034,963
14 4,168,182
18 1,717,757
5
FY11 Budget
690,158
^ Personnel
^ Operations
^ Capital
^ Reserves
48 53,599
43 439,329
18 13,848
18 53,077
6 104,781
9
Communications and
Information Technology
Multimedia
Services
Information
Security
Support Center
Business Center
Mail Services
City/Schools
Printing
Subscriptions
Total
1,533,420 1,532,662 19.3 1,198,988 15 -333,674
420,325 407,641 3 403,869 3 -3,772
983,927 1,053,811 8.5 480,965 2.8 -572,846
620,228 691,218 11 644,147 10 -47,071
284,140 229,449 4 205,219 4 -24,230
3,139,256 3,992,054 14 2,653,512 12 -1,338,542
1,567,797 2,554,006 N/A 3,076,463 N/A 522,457
25,557,580 31,333,967 188.8 30,200,923 179.8 -1,133,044
Zo
Communications and
Information Technology
15% Target Reduction _
Computer Replacement Program -$977,107 -1 Yes
Technology Lifecycle Maintenance -$499,923 -2 Yes
Information Systems Program Enhancements/Three -$448,174 -5 Partial
Technology Enhancement and Renewal Positions
*This encompasses IT, Voice, Radio, GIs and Applications. In total, the final Communications and Information
Reduction Criteria: Technology budget was reduced 3.6%.
-Mitigate impact on end-users and customers
-Reduce lowest ranked program areas
-Mitigate impact on core technology operations and maintenance
-Mitigate impact on existing infrastructure and applications
-Reduce service costs through service efficiencies
Information Technology Repair and Operations*
Communications and
Information Technology
15 % Target
Reduce Print Services Capacity & MFD Contract Pricing
Multimedia & Print -Reduced Programming on VBTV
Business Services -Longer Processing Time for Help
Calls
Technology Project Management -Reduced Capacity
to Complete Projects
Mail Services Efficiency Savings
Oracle Application 12 Release Capital Project Budget
Impact
Total Reduction
Reduction
1 - . - t
.•. -®
-$169,055 -2 No
- 975 397 -2 No
$1,144,352 -4 No
-$35,871 -1 No
-$88,434 -1 No
-$57,288 0 No
-$48,000 0 No
-$4,297,805 -21
Reduce Multimedia Services Production
G`N~ ~C~
~~ ~~~~ Commun~cat~ons an
~~
U ~~
~._ ~~ ~~
a~4~ ~~~ ,a=~ Inf rm i n T hn l
~s 5~~~ o at o ec o 0
o~ ,oN gy
1C. _ p~R rypS
FY11 Department Initiative Highlights
-Radio System Digital Upgrade for Public Safety
-Server Virtualization
-Deploy EMS Field Reporting
-lnitiate transition to Voice Over IP (VoIP)
-Geospatial Information Services (GIS) On-line mapping enhancements
-VBgov.com and Beachnet Redesign and Enhancements
- Employee Self Service via InSITE
-DHS/Social Services Technology Integration
13
r
v
BUR t~A~t~~~
Finance
14
~~4~`N~, ~ ~~
~' ~r7
O ~'C,~~ ~
~ ~~
Y ~~
~-~-.- ~`~~ ear m e n o ~ n a n ce
~- s ^_ ~uR NAj~aNS
Director's Office 855,861 867,798 8 727,254 7 (140,544)
Local Vehicle
Registration 769,165 894,908 0 852,772 0 (42,136)
Comptroller's Office 1,290,178 1,359,651 19 1,344,650 18 (15,001)
Payroll 640,064 663,312 9 691,542 9 (28,230)
Purchasing 1,071,710 1,162,452 14 1,074,998 13 (87,454)
Subtotal 4, 626, 978 4, 948,121 50 4, 691, 216 47 (256, 905)
Risk Management 10,280,471 9,157,020 7 11,593,333 7 2,436,313
Grand Total 14,907,449 14,105,141 57 16,284,549 54 2,179,408
~~ e a rtment o i na nce
~~~
~~~ .:
Zd~9 ,.~
Calendar Year 2010 Bond Sales
g~S oF_ 4LR NAS1~~•J{
General Obligation Refunding Bonds
Sale Date -January 12, 2010
Size - $99,630,000
Recovery Zone Economic Development Bonds - VML /VACo Pool
Sale Date -March 1, 2010
Size - $4,995,000
Annual General Obligation Bonds (includes Build America Bonds)
Sale Date -May 11, 2010
Size - $60 million
Public Facility Revenue Bonds -New Money
Sale Date -May 11, 2010
Size - $17 million
Public Facility Revenue Bonds -Refunding
Sa I e Date -May 12, 2010
Size - Up to $85 million
16
~~4~`N~, ~ ~~
~' ~r7
O ~'C,~~ ~
~ ~~
Y ~~
~-~-.- ~`~~ ear m e n o ~ n a n ce
~- s ^_ ~uR NAj~aNS
General Fund
Risk Management Fund
^ Personnel
Staff certifications include:
CPA (Certified Public Accountants,)
APS (Certified Accts Payable Specialists,)
CPP (Certified Payroll Professionals,)
CPPO (Certified Public Purchasing Officers,)
^ Operations
CPPB (Certified Public Purchasing Buyers,)
PE (Registered Professional Engineer,)
PMP (Project Manager Professional,)
CEBS (Certified Employee Benefit Specialist)
~' . c.5•~
~~~~ e a rtment o i na nce
_~~
15% Target Reduction
i i
Minority Business Council Position and Operating Accounts
Purchasing Office Assistant Position
Reduce compliance for minority contracting and decentralized procurements,
longer time for competitive processes
Comptroller Account Clerk Position
Reduce fixed asset record keeping and IDT processes
Analyst FTE
Reduce Debt and TIF/SSD Reports, Project Support
Efficiency Savings -Finance
Reduce temporary professional support, printing services, LVR, and other
support costs
Total Reduction
-$136,738 -2.00
-$113,697 -1.00
-$58,342 -1.00
-$50,958 -1.00
-$69,149 -1.00
-$203,343 0.00
-$632,227 -6.00
Yes
Yes
No
No
No
No
In total, the final Finance Department budget increased 15.5%.
Zs
Two Payroll Positions
~~~~~~~
o~ ~~~,~
s ~~ ear men o ~ na nce
U ~.~
.~
r i ~,
Y °^
~"9~SOFO~RNps,,,~:~~~ Risk Mana ement Self Insurance Fund
~.~ g
Self Insurance Fund: Workers Compensation, General
Liability and Auto Liability
• Rising Actuarial Liability - $19.3 Million
• Declining Cash Balances - 32% of estimated claims
• Rising Workers Compensation Claims
• Deficit Net Assets at Historical High Level =
($13.5 million) at June 30, 2009
19
~~ e a rtment o i na nce
~~~
~.~~ .
yd9i ..~ r
~.~ .
9g~s of 4LR NAS1oN~~~~ Risk Mana ement Self Insurance Fund
g
Workers' Compensation $6,920,458 64.35%
Property Insurance Premiums $1,128,641 10.49%
Other Insurance Premiums $80,910 0.75%
Legal Support & Service
GL & Auto Liability Expense
Broker Fees
Personnel/Administration
Tota
$843,173 7.84
$1,212,667 11.28%
$100, 885 0.94
$467,758 4.35
$10,754,492 100.00%
Zo
Department of Finance
Risk Management Self Insurance Fund
Recommendation:
Provide a funded ratio of 70% for this self insurance fund
-about $7 million
21
e a rtment o ~ na nce
~~~
.~
0.
°~ ~~ ~k ~ ~ FY11 Initiatives & Pro'ected H i h I i hts
6F BUR NAS~~h +-~
~~~..~'~
Major Emphasis: Execution of budget, legal compliance, procurement, workers compensation,
VRS, Debt, Payroll and best financial business processes.
Impact of staff reductions: No TIF Report, No Long Term Debt Report
Payment and Credit Card Control at $632 million
Pay 7,000+ employees, meet IRS Tax Reporting Compliance, $453 million
Procurement Process, PPEA Projects and Minority Contracting, $128 million
Issuance of Debt for General Obligation, PFRB, Recovery Zone, Build America Bonds, Quality School Construction
Bonds, Water & Sewer Revenue Bonds, and Storm Water Bonds
Capital Projects -Reimbursement from federal and state agencies
Bond Issuance and SEC/IRS Disclosure Compliance, Debt Management
~GASB 54 Implementation -Special Revenue Funds/Transfers
Congress: 3% IRS Vendor Withholding Tax -Jan 2012
VRS Changes for New Hires, VRS Technology Changes
~ARRA Financial Reporting Oversight
Cuts in TIF/SSD Report, OPEB Trust (GASB 45), Deferred Comp. Plan & Finance Systems Technology Improvements
Risk Management self insured and insured risks.