041510 QUALITY ORGANIZATION PRESENTATION (2)
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Budget
Workshop
FY 2010-11
April 15, 2010
Quality Organization
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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
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*The City Treasurer and the Commissioner of the Revenue will be presenting on April 27th with the other Constitutional Officers. 2
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
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^ Communications and Information Technology
^ Finance
General Registrar
^ Human Resources
Management Services
Municipal Council
^ Cultural Affairs
Strategic Growth Office
^ Other Non-Departmental
8.
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Director's Office $981,387 $960,669 10.5 $798,243 8 -$162,426
Employee Relations $384,809 $445,676 6 $401,840 5 -$43,836
Staffing & Comp. Services $1,108,066 $1,206,319 17.63 $1,179,884 16 -$26,435
Learning & Development $694,028 $678,009 6 $570,445 5 -$107,564
HR Police Services $87,523 $86,139 1 $90,727 1 $4,588
Occupational Health & Safety $1,120,692 $1,159,259 12 $1,116,890 11 -$42,369
Total $4,376,505 $4,536,071 53.13 $4,158,029 46 -$378,042
FY11 Budget
Personnel
81%
Human Resources
15% Target Reduction
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Return To Work -$67,951 -1.00 Yes
Diversity and Community Relations -$145,339 -2.00 Partial
Program Support Services -$159,431 -4.13 Partial
Professional Services -$284,968 -4.00 No
ELearning -$20,703 No
Organizational Learning & Development -Efficiency -$5,471 No
Total Reduction -$683,863 -11.13
Reduction Criteria:
-Elimination of Vacancies
-Elimination of Programs
-Reduction within Programs
In total, the final Human Resources Department
budget was reduced 8.3%.
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FY11 Department Initiatives
-Quality of Work Life Member Survey
-Exit Interview Process
-Performance Management System
-Injury Management
-Leadership Development Training
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Communications and
Information Technology
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Applications Support 6,116,503 6,873,101 49 6,926,700 48 53,599
Systems Support 7,163,358 7,595,634 43 8,034,963 43 439,329
Telecommunications 1,812,163 4,154,334 14 4,168,182 18 13,848
Geospatial 1,448,231 1,664,680 18 1,717,757 18 53,077
Information Services
Technology Project 468,232 585,377 5 690,158 6 104,781
Management Office
FY11 Budget
^ Personnel
^ Operations
Capital
^ Reserves
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Multimedia
Services 1,533,420 1,532,662 19.3 1,198,988 15 -333,674
Information
Security 420,325 407,641 3 403,869 3 -3,772
Support Center 983,927 1,053,811 8.5 480,965 2.8 -572,846
Business Center 620,228 691,218 11 644,147 10 -47,071
Mail Services 284,140 229,449 4 205,219 4 -24,230
City/Schools
Printing 3,139,256 3,992,054 14 2,653,512 12 -1,338,542
Subscriptions 1,567,797 2,554,006 N/A 3,076,463 N/A 522,457
Total 25,557,580 31,333,967 188.8 30,200,923 179.8 -1,133,044
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Communications and
Information Technology
15 % Target
Reduction
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Information Technology Repair and Operations* -$998,656 -7 Yes
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 11
Communications and
Information Technology
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Reduce Multimedia Services Production -$169,055 -2 No
Reduce Print Services Capacity & MFD Contract Pricing - 975 397 -2 No
Multimedia & Print -Reduced Programming on VBTV $1,144,352 -4 No
Business Services -Longer Processing Time for Help -$35,871 -1 No
Calls
Technology Project Management -Reduced Capacity -$88,434 -1 No
to Complete Projects
Mail Services Efficiency Savings -$57,288 0 No
Oracle Application 12 Release Capital Project Budget -$48,000 0 No
Impact
Total Reduction -$4,297,805 -21
15% Target Reduction
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FY11 Department Initiative Highlights
-Radio System Digital Upgrade for Public Safety
-Server Virtualization
-Deploy EMS Field Reporting
-Initiate 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
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Finance
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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
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Department of Finance
Calendar Year 2010 Bond Sales
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
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General Fund
47 Professional Staff
Pay Vendors and Manage Credit Card Pays $632 Million
Issue Bonds $122 Million
Payroll and IRS Taxes $ 453 Million
Competitive Procurements $128 Million
CIP and Grant Reviews $281 Million
CAFR $1.2 Billion
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,)
Risl< Management
^ Operations
CPPB (Certified Public Purchasing Buyers,)
PE (Registered Professional Engineer,)
PMP (Project Manager Professional,)
CEBS (Certified Employee Benefit Specialist)
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Two Payroll Positions -$136,738 -2.00 Yes
Minority Business Council Position and Operating Accounts -$113,697 -1.00 Yes
Purchasing Office Assistant Position -$58,342 -1.00 No
Reduce compliance for minority contracting and decentralized procurements,
longer time for competitive processes
Comptroller Account Clerk Position -$50,958 -1.00 No
Reduce fixed asset record keeping and IDT processes
Analyst FTE -$69,149 -1.00 No
Reduce Debt and TIF/SSD Reports, Project Support
Efficiency Savings -Finance -$203,343 0.00 No
Reduce temporary professional support, printing services, LVR, and other
support costs
Total Reduction -$632,227 -6.00
In total, the final Finance Department budget increased 15.5%.
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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
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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 $843,173 7.84%
GL & Auto Liability Expense $1,212,667 11.28%
Broker Fees $100,885 0.94%
Personnel/Administration $467,758 4.35%
Tota I $10, 754,492 100.00
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Department of Finance
Risk Management Self Insurance Fund
Recommendation:
Provide a funded ratio of 70% for this self insurance fund
-about $7 million
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Department of Finance
FY11 Initiatives & Projected Highlights
Major Emphasis: Execution of budget, legal compliance, procurement, workers compensation,
VRS, Debt, Payroll and best financial business processes.
rlmpact of staff reductions: No TIF Report, No Long Term Debt Report
rPayment and Credit Card Control at $632 million
Pay 7,000+ employees, meet IRS Tax Reporting Compliance, $453 million
rProcurement Process, PPEA Projects and Minority Contracting, $128 million
rlssuance of Debt for General Obligation, PFRB, Recovery Zone, Build America Bonds, Quality School Construction
Bonds, Water & Sewer Revenue Bonds, and Storm Water Bonds
rCapital Projects -Reimbursement from federal and state agencies
Bond Issuance and SEC/IRS Disclosure Compliance, Debt Management
rGASB 54 Implementation -Special Revenue Funds/Transfers
Congress: 3% IRS Vendor Withholding Tax -Jan 2012
VRS Changes for New Hires, VRS Technology Changes
rARRA Financial Reporting Oversight
rCuts in TIF/SSD Report, OPEB Trust (GASB 45), Deferred Comp. Plan & Finance Systems Technology Improvements
rRisk Management self insured and insured risks.
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