FY 2011-12 Adopted Budget - City of Oviedo

City of
Oviedo
Significant Budget Assumptions
Major Operating Expenditures
PERSONAL SERVICES
Description
Personnel costs include salaries, benefits and
payroll matching costs for all authorized full
and part tim e e mployees. Salaries include
regular wages, overtim e and special pays
whereas payroll matching costs include FICA
and workers com pensation. Benefits funde d
directly in the budget include required pension
contributions and paym ent of health,
long term disability and life insurance premiums.
Significant Assumptions
The budget is predicated on the full (100%)
funding of a ll current positions. The budget
does not include a factor for turnover or lapse
salaries. Wage adjustm ents and funding of
benefits is based on the following factors:
2% wage adjustm ent for all non-union
employees effective on April 1, 2012.
0% wage adjustm ent for all em ployees
included in the Fire Departm ent (IAFF)
collective bargaining agreement.
2% wage increase for employees included
in Police Departm ent (PBA) collective
bargaining units. 1% wage increase will
be effective on April 1, 2012 and 1% effective
on September 30, 2012, for an annualized
effective wage increas e of
0.50% for the year.
On behalf of each City em ployee, the
City budgets the full cost of Blue Cross/
Blue Shield PPO health insurance plus
life insu rance and lon g term disa bility.
The FY 11-12 budget includes a 5% decrease
in h ealth insurance premiums and
a 35% subsidy for the cost of dependent
health insurance costs.
The budget includes the required City
contribution based on an actuarial study
to fund the Fire and Police defined benefit
pension plans. The Police contribution
increased from 13.96% to 16.68% for
FY11-12 while the Fire contribution increased
from 17.1% to 18.6%.
The employer contribution to the 401(A)
defined contribution plan for all other
City employees is set at the actual matching
am ount depending on the e mployee
contribution up to a maximum of 5%.
The City does not budget for compensated
absences.
OTHER OPERATING EXPENSES
Description
Includes recurring and one-tim e expenditures
for purchasing goods and services (such as
materials and supplies, utilities, telephone,
building repairs, travel and training, fuel and
vehicle repairs) that ar e not classified as personal
services or capital outlay and are necessary
for a City program to provide services to
the public.
Significant Assumptions
Departments were required to develop their
FY 11-12 budget at operating expense levels
no greater than the current year F Y 10-11
adopted budget amounts. Inflationary and/or
market adjustments for fixed costs items such
as fuel, electric, and liability insu rance, were
to be absorbed so that the total budget was no
more than the current year adopted budget.
Fixed costs such as genera l liability insu r-
ance, fuel and electricity are ad justed based
on m arket conditions whereas h ealth insu r-
ance cos ts are bas ed o n curren t y ear trends
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