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Home My WebLink About041510 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.