9 months ago

2018 Adopted Annual Operating & Capital Improvement Budget


EXPENDITURE ASSESSMENT Personnel Personnel expenditures include the payment of employee salaries, overtime, allowances, benefits, and employer tax obligations. Costs associated with personnel represent 44.2% of the total budgeted expenditures. Personnel expenditures increased 1.3% or $297,447 over those of the prior year’s amended budget. Due to the materiality of personnel costs on the City’s budget, each element of the change is presented below. Where appropriate, additional information regarding the addition or transition of positions has been included in the appropriate department narratives. Correction of Prior Year Calculation Error: +$104,671 Additional FTE Facility Service Worker: +$48,701 Transition of 1 Commander to Sergeant: -$16,820 Promotion of 6 Police Officers to Corporals: +$28,243 Impact of Prior Year Merit Increases/Employee Transition: +$69,135 Employee Selection Changes to Health/Dental Plans: +$96,648 2018 General Employee Market Adjustments: +$18,602 2018 General Employee Merit Adjustments: +$207,720 2018 Commissioned Officer Market Adjustments: +$224,551 2018 Commissioned Officer Pay Plan Step Adjustment: +$77,271 2018 Seasonal Wage Adjustments: +$12,936 2018 Rate/Shift Differential Adjustments: -$10,000 2018 Overtime Wage Adjustments: -$7,478 2018 Allowance Adjustments: +$2,270. 2018 Medical/Dental Insurance Premium Adjustments: +$224,262 Use of Retirement Plan Forfeitures: -$783,265 The following chart illustrates the historical personnel trends and forecasts: $24.5 $24.0 $23.5 $23.0 $22.5 $22.0 $21.5 $21.0 $20.5 $20.0 Personnel (in millions) 2014 Actuals 2015 Actuals Personnel (in millions) 2016 Actuals 2017 Amended Budget $23.76 Million 2017 Estimate 2018 Adopted Budget 21.26 22.13 22.56 23.10 24.06 As depicted in the above chart, personnel costs are forecasted to increase approximately 4.2% above those of the yearend estimate. That said, there is often a difference between personnel forecasts and the costs which are actually recognized by the organization. The personnel budget is generated using current payroll data, yet such data is modified so as to infer the complete occupancy of all available positions. The method does not take into account the vacancy savings recognized when positions are vacated for a period of time, nor does it account for the often reduced rate which newly hired individuals earn in comparison to their predecessors. 28

EXPENDITURE ASSESSMENT Purchased Services The purchased services category represents approximately 12.6% of the total expenditures. Forecasted expenditures decreased 19.5% when compared to the prior year primarily due to the one-time expenditure associated with the dissolution of the Greenwood Village Sewer General Improvement District #1 in 2017. This category is made up of expenditures, which by their nature, are performed by persons or firms external to the organization. While a product may or may not result from the transaction, the primary reason for the purchase is the service provided. Expenditures which fall under this category include; administrative services, technical services, travel, training, repairs/maintenance, rentals/leases, and non-personnel related insurance premiums. Changes within the purchased services category are discussed within the departmental budgets. $8.5 $8.0 $7.5 $7.0 $6.5 $6.0 $5.5 $5.0 $4.5 Purchased Services (in millions) 2014 Actuals Purchased Services (in millions) 2015 Actuals 2016 Actuals 2017 Estimate 2017 Amended Budget $8.5 Million 2018 Adopted Budget 4.85 5.22 5.84 7.90 6.84 Supplies/Non-Capital Equipment The supplies and non-capital equipment category represents approximately 5.8% of the total organizational expenditures. Forecasted expenditures decreased 3.6% from the 2017 amended budget. Expenditures in this category are for items that are consumed, worn out, or deteriorated through use, and do not meet the requirements of the City’s definition of capital assets. Supplies, natural gas, electricity, fuel, as well as non-capital equipment such as file cabinets, desks, and personal computers are included in this category. Changes within the supplies/non-capital equipment category are discussed within the departmental budgets. $3.5 Supplies/Non-Capital Equipment (in millions) 2017 Amended Budget $3.25 Million $3.0 $2.5 $2.0 Supplies/Non-Capital Equipment (in millions) 2014 Actuals 2015 Actuals 2016 Actual 2017 Estimate 2018 Adopted Budget 2.73 2.85 3.05 3.10 3.13 29