The URL can be used to link to this page

Home My WebLink About041510 QUALITY ORGANIZATION PRESENTATION (2) ~` Budget Workshop FY 2010-11 April 15, 2010 Quality Organization r~ ~~fi ~~JR NA'[~d.~ 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. 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 _ -. 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 QtrR tvAS~°,~ Human Resources ~~4ctN'I!~ A o~ ~ ~ ~~ ,. ~~ ~.~~~.~ ~ -- ~~~ u m a n eso u rtes 2 2 a .`"r~''~~ ~~. 9~~ e s °~ ouR NasjoN ~ ~R 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 a a ~~ ~ ~ ~~. ~ . s o~ 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%. 6 ~1~~~~.}lA BE~ ~"i ~:, ~'. U ~ y ~~-----~--_ ~x~~. r:.~ u m a n eso u rtes y ~,~. .,. .~' 4~ ,, ,~ -.a z=~ `~ ~~~ ouR NAj`oN~ FY11 Department Initiatives -Quality of Work Life Member Survey -Exit Interview Process -Performance Management System -Injury Management -Leadership Development Training r v QtrR tvAS~°,~ Communications and Information Technology ~~ ~~~ ~~~ m m n i tin n z~ Co u ca o s a ~„ ~oN ~~~ I o f r m i n T h n l o~RNAS~ .~ o at o ec o 0 ~~ gy ~n~.~Tw^ „~e ,,. ~ , , .E- ~1.~: 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 9 ~~ ~~~ ~~~ m m n i tin n z~ Co u ca o s a ~„ ~oN ~~~ I o f r m i n T h n l o~RNAS~ .~ o at o ec o 0 ~.~ gy _~ 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 Zo Communications and Information Technology 15 % Target Reduction r 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 w~ s®, ~ -~ 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 G~'~'~''~EAc~ ~, ~'. Commun~cat~ons an U _ ~ 4~9~ ~ P ~~~~ o at o ec o 0 y~ ~~~ ~~ Inf rm i n T hn l ~~~ ouR NAj`oN~ ..~ gy 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 13 r v QtrR tvAS~°,~ Finance 14 ~1~~~~.}lA BE~ ~"i G~ ~ • ,~ ~~----~-- ~ ~~~ ear m e n o r o a n ce r ~ , ~ ~ ~ ,,~ :a r ~ y~0 9~ ss~...4~,=•~ ~~ ~ ~ ~~~ ouR NAj`oN~ 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 15 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 16 ~1~~~~.}lA BE~ ~"i G~ ~ • ,~ ~~----~-- ~ ~~~ ear m e n o r o a n ce r ~ , ~ ~ ~ ,,~ :a r ~ y~0 9~ ss~...4~,=•~ ~~ ~ ~ ~~~ ouR NAj`oN~ 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) 17 7 Professional Staff r~'~~~ e a rtment o ~ na nce k } ~~ g ~~ ~~r~ 15 % Tar et Re d u ct i o n ~:~ A ~.~ OF. pp'q pypS1~N~+~ ~.. ~, ~ ~ ~ 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%. Zs ~~4~~Z.1,1A A ~ ,~ o~ ,~~ • ~~~~ ~~ ~.~ ear men o ~ na nce U ~,~ * ,,- ' ~ 4 f - ,j~ A y°~9~~s n ~~~t~~~~ Ri k M n m n If I n r n F n ~~ o~R Na~~~~~ ~ s a a e e t S e s u a c e u d ~~ 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 C~ ,~ • z~ e a rtment o ~ na nce ~~ M ~ - Pax • oFo~~~ Risk Mana ement Self Insurance Fund ~.~ ~ g ~~~~ 4 ~~ 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 Zo ko~ - ~~; ~:, ~ ~CC i~k i w c+ ~9 ~~. '+'~ 04 r 5 ~-rOF O~1R NAS1~N Department of Finance Risk Management Self Insurance Fund Recommendation: Provide a funded ratio of 70% for this self insurance fund -about $7 million 21 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. 22