HomeMy WebLinkAboutBudget Work Session General Fund and Planning Fund for FY2014_2
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Fiscal Year 2014 (FY14) Budget Work Session General Fund & Planning Fund
MEETING DATE: June 10, 2013
AGENDA ITEM TYPE: Work Session
RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you
see fit.
BACKGROUND: Attached are a Budget Information Sheet and other materials regarding the
General Fund & Planning Fund. This information has been prepared to assist us in developing
the City’s Final Budget, and is based on what is contained in the City Manager’s Recommended
Budget, available at http://www.bozeman.net/Departments-(1)/Finance/Budgets-and-Financials.aspx. Based on feedback during this work session, and the other work sessions held
this spring, we intend to prepare the Final Budget resolution. The hearing for adoption of the
Final Budget is scheduled for July 1, 2013.
GENERAL FUND General Fund Personnel: The concerns expressed about the General Fund budget this year have been: 1. Staffing Costs, in general.
2. Justification for Recommended Added Positions
1. Staffing Costs. As noted in our presentation of the City Manager’s Recommended Budget, the city’s General Fund personnel costs have been growing over the years.
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Increasing personnel costs in the general fund are attributed to the following factors:
• Wage inflation, predominantly governed by collective bargaining agreements in the General Fund.
• Added staff positions.
• Terminations/Retirements that result in pay-outs of accumulated leave balances, and/or replacement staff overlapping wages for a short period of time.
• Increasing health care costs.
• Changes in health care coverage. The city provides different amounts depending on
whether an employee needs to cover just themselves, or themselves and other family members. Each year, at open enrollment and during qualifying events, employees
may select a higher-cost insurance option.
Factors that work to decrease our personnel costs:
• Employee turn-over. New personnel are usually hired at lower rates (entry-level) of pay than the incumbent they replaced.
• Vacant positions held open for periods of time. o Vacant Police Officer positions have had a significant effect on actual personnel costs over these years.
o Difficulty hiring and retaining short-term workers for the summer season in
Parks/Recreation has had an effect in some years.
• Changes in health care coverage. The city provides different amounts depending on whether an employee needs to cover just themselves, or themselves and other family members. Each year, at open enrollment and during qualifying events, employees
may select a lower-cost insurance option.
2. Positions: This year’s Recommendation to add 6.55 Full-Time Equivalent (FTE) positions in the General Fund is higher than recommendations in the most recent years. It is more in-line with recommended levels of position additions in the pre-recession years than staffing
recommendations in the recent past. This year, the majority of the positions are a direct
result of voter approved levies and bond issues or the Commission’s adopted priorities.
$18,266,729
$16,762,219 $15,904,176 $16,053,557
$15,027,650
$14,055,007
$12,938,332
$11,551,078 $10,000,000
$15,000,000
$20,000,000
City Budget - General Fund - Personnel
including State Retirement for PD/Fire
Personnel Linear (Personnel)
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During the recession years, the City took many measures to try to manage workloads and costs
related to staffing levels. These strategies included lay-offs, program cuts/changes, hiring freezes, temporary workers, pay freezes, market wage studies, and pension and health benefit
changes. We continue to work to make our staff efficient and “right-sized” for the level and
breadth of services we need to provide. This year, our use of improved software in Community
Development, Public Works, Police, Parks, Facilities, and Human Resources all seek to make the
General Fund workforce not just larger, but to work “smarter.”
Attached is a recent study by the Center for State and Local Government Excellence, Survey
Findings on 2013 Workforce Trends. They find:
The picture is brightening for the state and local government workforce, although 33 percent still
report pay freezes and 18 percent report layoffs. That compares with 51 percent reporting pay freezes in 2012 and 28 percent reporting layoffs. Other key findings:
• Twenty-seven percent report that hiring freezes are in place compared with 42 percent in 2012.
• Fifty-six percent modified health benefits.
• Seventy-four percent rated staff development the most important workforce issue in 2013,
followed by employee morale (70 percent), and managing workloads (68 percent).
In total, we attributed over 15 FTE being cut as a result of recession financial and workload
pressures in FY09-FY12. The Recommended Staffing Changes for FY14 represent the return
of some of those jobs (Fire Department, CM Office, Library) and the expansion of services in areas that are necessary to assist with adopted priorities.
Recommended Staffing Changes for FY14 – General Fund Number of Full-
Time Equivalent
Positions
Battalion Chiefs 2.0 FTE
Park & Trail Bond Project Coordinator 1.0
City Manager’s Office Support Position 1.0
-15
-10
-5
0
5
10
15
20
FY14 FY13 FY12 FY11 FY10 Mid-Year
Cuts
FY09 FY08 FY07
Net Recommended and Adopted General Fund
Positions Adopted Budget
CM Rec
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Economic Development Specialist 1.0
Library - 12hrs of Librarian I 0.3
Library - Computer Training Center/Job Training 1.0
Library - Sunday Summers 0.25
Net Change 6.55 FTE
Battalion Chiefs: Information on these positions was provided in the 5/6/2013 Commission Packet (also attached here.) These two positions add to the existing one Battalion Chief to
complete the compliment of department management that was anticipated when the staffing of
Fire Station #3 and the voter-approved levies were passed.
Park & Trail Bond Project Coordinator: This position is initially sought to lead and manage the acquisition and development of the Parks and Trails capital that will be purchased with the
voter-approved bonds. We expect to get underway with $5 Million available to spend during this
budget year.
City Manager’s Office Support Position: During the recession years, the Executive Assistant position was cut from the City Manager’s office budget (FY11.) This new position would assist
all of the efforts working out of the CM’s office, including Economic Development and
Sustainability.
Economic Development Specialist: Recommended by the Economic Development Committee, the position would administer and expand existing projects and programs and take advantage of
increased training opportunities.
Library – 0.3 FTE for Librarian I position. (Also requested, by not included in CM Recommended budget for FY13) Addition of 12 hrs/week of staff time that would allow the Library to improve Technical Services and Reference Librarian services; delivering more
technical an statistical data for the Library.
Library – Computer Training Center/Job Training. This is a new position that is an important step in growing the Library as an economic engine for Bozeman. Adding this position would allow the library to increase, to a minimum, 10 free computer lab classes each week. The
Library would like to offer more free public classes such as resume building, Microsoft Word &
Excel, and other classes that will help make patrons more “employable” in today’s growing job
market. The Library’s goal is to build a dynamic computer training program that is free to the Bozeman community; this position will be a beginning step.
Library – Sunday Hours. Begin being open to the public on Sundays all year, not just during
the school year as we are currently. This service could begin on 7/7/2013.
Department Information - General Fund Budgets:
1. Commission Budget - $234,023
a. Commission’s operating budget includes $95,000 in general contracted services
cost due to the upcoming primary and general election. This includes $50,000 in election fees and $45,000 estimate for the Police Station bond issue. b. Dues and Certifications including $13,000 in Chamber dues and $9,225 Montana
League of Cities and Towns.
c. Special Bodies division includes operating budgets of $4,000 for the Ethics Board
required training sessions and distribution of materials.
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2. City Manager’s Office - $642,831 (Administration & City Clerk)
a. Human Resources department costs have been fully moved to Administrative
Services Division in FY14. b. Includes the addition of a full-time Communication/Administrative Assistant, 1.0
FTE for the year, $56,000 estimated total.
c. Municipal Code updates budgeted at $17,350.
d. Maintenance contracts total $32,900 and include $12,500 annual LaserFische
renewal and $20,400 for Commissioner Meeting and Public Engagement software.
3. Municipal Courts - $666,599
a. County Law & Justice Center Court 1 & Clerk Space, lease amount. $48,000
b. County Law & Justice Center Court 2 Space, lease amount. $26,250 c. Postage $7,840
4. City Attorney’s Office - $1,038,847 Recommended Budget ($125,000 from Victim
Witness Fund.)
a. Summer legal intern $6,000. b. Insurance consultant $15,000.
c. Capital – E-Discovery Software to assist with preservation of records and court
discovery responses. $65,000.
d. Outside counsel for litigation/arbitration $100,000.
5. Administrative Services (Finance, Accounting, Treasury, IT, Human Resources) -
$1,995,024
a. Human Resources and Information Technology have been moved to
Administrative Services Division in FY14. G.I.S., formerly part of IT, moved to Public Works Administration.
b. Software contract for enterprise software. $69,335
c. LaserFische old business license documents $6,000.
d. Annual Audit – General Fund Share. $26,000
e. Enterprise Financial System Software maintenance. $69,335 f. New topper for IT truck $1,500.
g. Switch and router replacements $40,000.
h. Review of new employee handbook $10,000.
i. Human Resource Information Software $20,000.
6. Facilities Management - $1,195,353
a. Listing of Facilities included on page 117 of CM Rec. Budget. Most, but not all,
facilities are budgeted here.
b. Facility Equipment Repair funds. $30,000
c. Facility Building Repair funds. $52,000 d. General (exterior, etc.) Repair funds. $22,000
e. General Supply funds. $29,500
f. Capital – GF104 Building Energy Upgrades. $15,000
7. Police Department - $8,189,822 from General Fund (not including state share of retirement costs)
a. Full Funding for all Levy positions.
b. Capital - Replacement of 4 patrol vehicles, including equipment. $208,000
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c. Capital - Replacement of one unmarked vehicle. $35,500
d. Capital – GF179: Land Purchase for Police and Municipal Court. $1,000,000
e. Animal Shelter Fees for strays and impounds. $124,900
f. Spay Neuter Task Force. $3,000
8. Fire Department - $4,945,436 from General Fund (not including state share of retirement
costs)
a. Battalion Chief Positions – 2.75 FTE added costs, above FY13. $258,237.
b. Clothing & Uniforms. $57,875 c. Fire Equipment and Vehicle Maintenance. $55,230
d. FY14 Water Usage – Paid to Water Fund. $111,300.
e. Mobile Data Terminal Upgrades for Fire Vehicles. $10,150
f. Small Equipment & Tools. $24,717
g. Thermal Imaging Camera for Ladder Truck $9,100
9. Parks - $6,341,452
a. Issuance of approximately $5 Million of the $15 Million Parks & Trails Bond.
b. Add 1 FTE for Parks & Trails Bond Project Coordinator.
c. Capital – GF031 Park Improvement Grants. $75,000
10. Library - $1,648,701
a. Books & Reference Materials. $168,784
b. Library processing supplies, (RFID security tags, etc.) $35,600
c. 3M Contract for RFID system. $20,000 d. Montana Shared Catalog Cost. $18,900
e. Library2Go & Ebooks downloadable media services. $11,000
f. Magazines, Newspapers, Online Subscriptions. $30,000
g. Capital – Public Copier. $7,413
h. Additional Staff hours for Summer Sunday Openings. .55 FTE i. Added 1.0 FTE for Computer training position.
11. Recreation - $1,788,476
a. Includes the budget for Swim Center, Bogert Pool, and Lindley & Beall Centers
in the General Fund. b. Capital - $450,000 budget includes: $25,000 for design/site/ engineering for
splash park; $300,000 construction of splash park; $125,000 represents one half
of the new pool design (remainder in following year).
c. Bogert Pool Gutter Tile Repairs. $25,000
d. Building Repairs at the Swim Center. $17,000 e. Equipment & Other Repairs at the Swim Center. $21,250
f. Building Repairs at Bogert Pool. $8,100
g. Equipment & Other Repairs at Bogert Pool. $9,200
h. Recreation Programs supplies, etc. $54,253
12. Economic Development, $339,729
a. Addition of 1.0 FTE Economic Development Specialist
b. Support of Gallatin College Programs (1.5 Mills) $126,000
c. Contracted Services for
i. Sector Development Program $15,000 ii. Collaborative Marketing Program $25,000
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13. Sustainability, $122,176 (Many Sustainability efforts are also funded in our Enterprise
and Special Revenue funds, not just the General Fund.)
a. Community Climate Plan Initiatives $15,000
b. Energy Reduction Challenge $10,000
Summary of Recommended Capital Purchases – over $1,900,000, including: a. E-Discovery Software to assist with preservation of records and court discovery
responses. $65,000.
b. Replacement of 4 patrol vehicles, including equipment. $208,000 c. Replacement of one unmarked police vehicle. $35,500.
d. Land Purchase for Police and Municipal Court. $1,000,000.
e. Park Improvement Grants. $75,000
f. Library Public Copier. $7,413
g. Design/site/ engineering for Splash Park. $25,000 h. Construction of Splash Park. $300,000
i. New Pool Design (partial, to begin the process) $125,000
This amount of Capital spending is higher than in past years.
• The Police & Municipal Court Facility project has made up the build of General Fund capital spending in the past three years (total of $1.75M in FY12-14.)
• Police Vehicle Replacements are necessary due to increasing wear and tear now that
vacant positions are being filled more regularly. This year, we are recommending that 4 marked and one unmarked vehicle be replaced. The Adopted CIP proscribed 3 & 1, respectively.
• The Splash Park & Pool design costs total $450,000 this year; very close to the $482,000
that had been in the CIP previously for the Bogert Pool Shell, Gutter, & Boiler projects.
Outside Requests for General Fund Support: In addition to addressing these items, tonight’s
work session is also an opportunity for you to hear directly from the outside organizations that
have requested funding support this year: Streamline, Road to Home, and the Spay-Neuter Task
Force.
Organization FY14 Request CM Recommended Amount
Streamline “one-mill” $83,769
Spay-Neuter Task Force $3,000 $3,000
Each of these organizations has been informed of the meeting tonight, and may be present to
answer questions about their request.
In addition, Road to Home will be present to answer questions about their request for $40,000 Workforce Housing mill-levy money to support the administration of Road to Home in the coming year. Although this is not funded by the General Fund, it comes from the dedicated 0.5
mill levy, from our total authorized mills, that the Commission has set aside for Workforce
Housing purposes.
PLANNING FUND:
While the Planning Fund is a Special Revenue fund, it is heavily reliant on the General Fund for support.
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The Community Development Department information begins on page 109 of the City
Manager’s Recommended Budget document.
This year, the “Planning Department” was re-named the “Community Development Department”. It still retains the same funding relationship to the city’s Planning Fund and General Fund. The most notable change is related to the Community Development
Director’s salary and benefits now being partially supported by the Building Inspection Fund,
which she supervises.
Revenues:
The Planning Fund is supported by a number of different revenue sources, including a
substantial transfer from the General Fund. Over the past couple of years, Planning Fees
have exceeded our budget estimates, and the department has spent less than budgeted, leaving a surplus in the Planning Fund that we estimate will total roughly $370,000 at the end of FY13. We are recommending that a portion of this surplus be used to fund department
operations to allow for a lower amount of General Fund transfer (subsidy.)
This budget anticipates that two of our Tax Increment Districts will continue to contribute money to fund the department in the same amount as FY11 - FY13: N 7th District- $10,000 and Northeast District - $5,000. These transfers are included “other revenues” below.
Planning Fund -
Revenues
FY10 Actual FY11 Actual FY12 Actual FY13 Budget FY14 Budget
Application Fees $134,500 $153,000 $160,000 $112,000 $146,700
General Fund Transfer 348,000 327,000 316,500 334,000 184,036
Taxes 147,000 147,000 166,000 167,500 169,782
State/Grants 84,500 95,700 99,500 76,500 101,480
Other 20,400 33,000 30,000 33,000 31,000
Total $734,400 $755,700 $772,000 $723,000 $632,998
The CM Recommended Budget includes estimated Application Fee revenues of $146,700, or $12,225/month. The estimate for FY14 is based on the ACTUAL revenues for the most
recent 12 months (April – June of FY12, and July – March of FY13.)
As you can see from the graph that follows, average monthly application fees have risen markedly in the past four quarters. At budget development time last year (FY12, Q3 completed), we were seeing a promising increase in planning activity.
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Expenditures: Excluding personnel costs, a total Planning Fund operating budget of
$205,188 is proposed. Attached on the next page, you will find a break-down of the separate
areas of the operating budget and a chart representing the same. As you can see, the three largest areas of the operating budget are:
• Consultants and Professional Services - $91,500 total, including
o Temporary staffing and intern work - $35,000 o Data transfer services for migration of Planning data to Sungard system - $35,000
o Historic Preservation Survey - $20,000
• Computers and Servers - $16,000 for the replacement of department computers.
• Computer Supplies - $16,700 for computer system training costs and GIS licenses.
• Maintenance Contracts - $8,000 for their photocopier (includes toner supplies.)
Budget Surplus or Deficit:
Planning Fund FY10 Actual FY11 Actual FY12 Actual FY13 Budget FY14 Budget
Revenues
$754,400
$755,700 $ 772,000 $723,000 $632,998
Expenditures
691,146
691,146 648,829 734,029 782,979
Surplus/(Deficit)
$63,254 $64,554 $123,171 ($11,029)
($149,981)
FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session.
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
FY13 FY12 FY11 FY10 FY09 FY08
Average of Monthly Planning Fees
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The General Fund and Planning Fund budgets primarily affect the Property Tax amount below.
As presented, the City Manager’s Recommended Budget is projected to have the following
effects on the typical City resident:
Typical Resident: Assessment/Charge CM Recommended Budget
Street Assessments $12.52
Forestry Assessments -
Property Taxes $45.00
Water Services $14.40
Sewer Services $15.84
Storm Water Services $0 .96
Annual Increase $88.72
Monthly Increase $7.39
Attachments: General Fund - Personnel
General Fund – Training & Travel
General Fund – Fuel
General Fund – Overtime General Fund – Capital Center for State and Local Government Excellence - Survey Findings on 2013 Workforce
Trends.
Streamline Request
Road to Home Request & Report
Report compiled on: May 29, 2013
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Date: 5/31/2013FY14 Budget Preparation
GENERAL FUND - PERSONNEL BUDGETS
Personnel with chart.imr
Department Budget Level Amount
ADMINISTRATIVE SERVICES $1,336,881.00
CEMETERY $284,125.00
CITY ATTORNEY $663,022.00
CITY COMMISSION $94,448.00
CITY MANAGER $544,516.00
COMMUNITY DEVELOPMENT $188,215.00
FACILITIES MANAGEMENT $258,493.00
FIRE $4,090,978.00
LIBRARY $1,161,016.00
MUNICIPAL COURT $518,361.00
PARKS $737,548.00
POLICE $5,610,424.00
PUBLIC SERVICE $105,896.00
RECREATION $772,806.00
$16,366,729.00 GENERAL FUND - PERSONNEL
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Date: 5/31/2013FY14 Budget Preparation
GENERAL FUND - TRAINING/TRAVEL BUDGETS
travel with chart.imr
Department Budget Level Amount
ADMINISTRATIVE SERVICES $15,475.00
CEMETERY $500.00
CITY ATTORNEY $10,000.00
CITY COMMISSION $2,000.00
CITY MANAGER $12,240.00
COMMUNITY DEVELOPMENT $8,000.00
FACILITIES MANAGEMENT $3,500.00
FIRE $21,600.00
LIBRARY $4,883.00
MUNICIPAL COURT $4,050.00
PARKS $5,500.00
POLICE $52,750.00
PUBLIC SERVICE $8,420.00
RECREATION $14,500.00
$163,418.00 GENERAL FUND - TRAINING/TRAVEL
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Date: 5/31/2013FY14 Budget Preparation
GENERAL FUND - OVERTIME
overtime with chart.imr
Department Budget Level Amount
CEMETERY $4,461.00
CITY ATTORNEY $1,000.00
FACILITIES MANAGEMENT $944.00
FIRE $88,580.00
PARKS $5,539.00
POLICE $120,500.00
PUBLIC SERVICE $1,000.00
$222,024.00 GENERAL FUND - OVERTIME
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Date: 5/31/2013FY14 Budget Preparation
GENERAL FUND - FUEL BUDGETS
Fuel with chart.imr
Department Budget Level Amount
ADMINISTRATIVE SERVICES $3,150.00
CEMETERY $10,000.00
CITY MANAGER $500.00
FACILITIES MANAGEMENT $5,750.00
FIRE $30,500.00
PARKS $42,000.00
POLICE $109,000.00
PUBLIC SERVICE $2,800.00
RECREATION $1,800.00
$205,500.00 GENERAL FUND - TRAINING/TRAVEL
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Date: 5/31/2013FY14 Budget Preparation
GENERAL FUND - CAPITAL
Capital with Chart.imr
Department Budget Level Amount
ADMINISTRATIVE SERVICES $40,000.00
CITY ATTORNEY $65,000.00
FACILITIES MANAGEMENT $27,000.00
FIRE $11,100.00
LIBRARY $7,413.00
PARKS $12,000.00
POLICE $1,243,500.00
PUBLIC SERVICE $25,000.00
RECREATION $475,000.00
$1,906,013.00 GENERAL FUND - CAPITAL
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May 2013
Survey Findings
State and Local Government Workforce:
2013 Trends
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2 State and Local Government Workforce: 2013 Trends
State and Local Government Workforce:
2013 Trends
The picture is brightening for the state and local government workforce, although 33 percent still report pay freezes
and 18 percent report layoffs. That compares with 51 percent reporting pay freezes in 2012 and 28 percent report-
ing layoffs. Other key findings:
• Twenty-seven percent report that hiring freezes are in place compared with 42 percent in 2012.
• Fifty-six percent modified health benefits.
• Seventy-four percent rated staff development the most important workforce issue in 2013, followed by employee
morale (70 percent), and managing workloads (68 percent).
The pace of retirements is high, with 22 percent reporting that employees have accelerated their retirement date.
Twenty-nine percent of current employees saw an increase in their pension contributions, as did 34 percent of new
hires. When asked if employees were financially prepared for retirement, 44 percent said, “no,” and 18 percent
said, “yes.”
The survey was conducted among members of the International Public Management Association for Human
Resources1 (ipma-hr.org) from March 19–April 10, 2013 by the Center for State and Local Government Excellence
(slge.org). Three hundred and twenty-three (323) members took part in the survey.
Workforce Changes
2) Which of the following workforce changes has your
government implemented over the past year? (N = 321)
0%10%20%30%40%50%60%70%80%
Other15.3%
No Changes37.4%
Layoffs18.1%
Hiring Freezes26.5%
Pay Cuts5.9%
Pay Freezes33.0%
Furloughs10.6%
Note: “Other” changes offered were: no general wage increases, but
step movement still available; early retirement incentive program;
delay in refilling vacant positions; strategic refilling vacant positions;
award freezes; travel restrictions; training and career development sus-
pensions/restrictions; lump sum increases with no adjustment to base;
combined some positions; converted some positions from full to part-
time; collective bargaining abolished; suspended vacation accruals;
reduction in force; hiring temporary employees; voluntary furloughs
and severances; reduction in entry level salaries; lower merit increases.
Participants
1) You work for…(N = 323)2:
Local government
State government
Federal government
75.5%
15.5%
7.1%1.9%
Another sector
1 Sent to about 5,850 members
2 (N = number of respondents to each question)
Note: Due to rounding and/or skipped questions, pie charts
might not add up to 100% exactly.
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State and Local Government Workforce: 2013 Trends 3
3) Since the economic downturn in 2008, is your
workforce: (N = 323)
Smaller, but less than 5% smaller26.0%
0%10%20%30%40%
5–10% larger4.3%
More than 10% larger2.5%
Don't know5.6%
More than 10% smaller12.1%
Larger, but less than 5% larger7.4%
The same size19.5%
5–10% smaller22.6%
4) In 2012 your government hired... (N = 318)
Less people than
it did in 2011
More people than
it did in 2011
The same number
of people it did
in 2011
26.7%
Don't know32.4%
11.9%
28.9%
5) In 2012 your government laid off... (N = 292)
Less people than
it did in 2011
More people than
it did in 2011
The same number
of people it did
in 2011
6.5%Don't know
35.3%26.7%
31.5%
Unfilled Positions
6) What positions, if any, do you continue to have a
hard time filling in the current economic climate?
(N = 256)
• Attorneys
• Business Analysts
• Community and
Business Development
Specialists
• Correctional Officers
• Dispatchers
• Engineers (all types)
• Epidemiologists
• Finance (all types)
• Firefighters / EMS
• GIS Programmers
• Health Science
Administrators
• Human Resource
Specialists
• Information Technology
Professionals
• Management
(mid + upper levels)
• Medical Officers
• Nurses
• Pharmacists
• Physicians
• Police Officers
• Psychiatrists
• Public Health
Professionals (all types)
• Public Health
Researchers
• Public Works
(all types)
• Purchasing Specialists
• Scientific Researchers
• Seasonal Pool and
Recreation Employees
• Skilled Trades (all types)
• Social Workers
• Water Treatment Plant
Occupations (all types)
Postponed Retirements
7) What changes, if any, have your retirement-eligible
employees made regarding their plans for retirement?
(N = 322)
Postponed their
retirement date
Accelerated their
retirement date
No changes
21.7%
Don't know
37.6%
20.5%
23.6%
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4 State and Local Government Workforce: 2013 Trends
Retirement Plan Changes
8) Over the past year, has your government made any
changes to the retirement benefits you offer to your
employees? (N = 318)
Yes
No
Don't know53.8%
2.5%
43.7%
9) If your government has made changes to the
retirement benefits, has it made any of the following
changes to retirement benefits for new hires? (N = 272)
n/a43.8%
0%10%20%30%40%50%60%70%80%
Replaced a dened benet with a hybrid plan(combination of a DB and DC plan)4.0%
Decreased employer contributions to dened contribution plans2.9%
Increased minimum eligibility requirements (vesting)9.9%
50.7%
Replaced a dened benet with a dened contribution plan4.4%
Increased employer contributions to pension plans8.5%
Reduced/eliminated cost of living adjustments9.9%
Increased age and service requirements for normal retirement
Decreased pension benets15.1%
Other 9.9%
26.1%
Increased employee contributions to pension plans33.5%
Note: “Other” changes offered were: returning retirees’ earnings
capped; waived the six-month wait to start participating in the
pension plan; reduced disability benefits and interest on refund of
contributions; decreased retirement insurance benefits; implemented
two-tiered retirement formulas; gave lump sums instead of COLAs;
provided more investments options in defined contribution plan;
implemented state retirement system changes.
10) If your government has made changes to the retire-
ment benefits, has it made any of the following changes
to retirement benefits for current workers? (N = 267)
n/a55.1%
0%10%20%30%40%50%60%70%80%
Replaced a dened benet with a hybrid plan(combination of a DB and DC plan)0.4%
Decreased employer contributions to dened contribution plans2.2%
Increased minimum eligibility requirements (vesting)3.0%
50.7%
Replaced a dened benet with a dened contribution plan0.4%
Increased employer contributions to pension plans9.4%
Reduced/eliminated cost of living adjustments8.2%
Decreased pension benets4.1%
Other (please specify)6.7%
Increased age and service requirements for normal retirement6.0%
Increased employee contributions to pension plans29.2%
Note: “Other” changes offered were: decreased minimum eligibility
requirements; reduced disability benefits; reduced interest on
return of contributions; provided employer match for deferred
compensation; created a lump sum incentive bonus for retirement
up to 2015; increased cost of purchasing universal service credit;
firefighters statewide opted out of Social Security; implemented all
changes required by state legislation.
Retirement Preparedness
11) Do you feel your employees are prepared financially
for their retirement? (N = 322)
Yes
No
Don't know
37.6%
18.3%
44.1%
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State and Local Government Workforce: 2013 Trends 5
12) Over the past year, do you see indications that your
employees are saving more, less, or the same for retire-
ment than in previous years? (N=323)
Less
More
The same amount
17.3%
Don't know
15.5%
37.8%
29.4%
Health Care Plan Changes
13) Over the past year, has your government made any
changes to the health benefits you offer your employees
and retirees? (N = 321)
Yes
No
Don't know
41.4%
56.4%
2.2%
14) If your government has made changes to the health
benefits, what changes? (N = 279)
0%10%20%30%40%50%60%70%80%
Shifted more health care costs from employer to employees (examples: higher premiums, co-payment, and deductibles)
Shifted from a traditional retiree health care model to a dened contribution health care model for current employees1.8%
Created wellness programs
Shifted more health care costs from employer to retirees9.3%
Shifted from a traditional retiree health care model to a denedcontribution health care model (example: health savings plan) for new employees2.9%
28.0%
52.0%
Other (please specify)13.6%
Eliminated retiree health care1.4%
Created chronic care management programs9.0%
n/a31.5%
Note: “Other” changes offered were: option for higher co-pay with
lower premium; reduced or expanded the number of plan options;
eliminated retiree health care subsidy for new hires; changed
contribution for retiree health; froze employer contribution to health
insurance and gave employees some money in VEBA; spouses of new
hires must take their own insurance as primary where it’s available;
opened a clinic; added reduced premium rates for non-smokers;
began offering higher deductible plans but mitigated the cost to the
employees; eliminated retiree dental for new employees; eliminated/
consolidated carriers; self-insured; implemented outcomes-based
measures that affect health insurance contribution rate; increased
service years required to be eligible for state share for health
insurance.
Workforce Issues
15) Looking ahead, which workforce issues are important to your organization? (N = 323)
0%20%40%60%80%100%
Important
Somewhat
important
Not important
Creating a more exible workplace
Public perception of government workers
Competitive compensation package
Employee Financial Literacy
Reducing employee health care costs
Retaining staff needed for core services
Attracting workers to the public sector
Managing workloads when current staff isstretched thin but new staff cannot be hired
Turnover
Employee morale
Succession planning
Staff development
Note: “Other” issues offered
were: workforce and strategic
planning; employee engagement;
changing salary schedules; pay
compression; striving to become a
high performance organization in
lean times; customer service; benefit
costs and the ACA; LEAN principles;
utilizing part-time workers; retirement
education for defined contribution
members; forced merger; onboarding;
hiring quality staff for the pay offered;
and aging population.
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Board Of Directors
Robert J. O’Neill, Chair
Executive Director, ICMA
Joan McCallen, Vice Chair
President and Chief Executive Officer,
ICMA-RC
Donald J. Borut
Former Executive Director,
National League of Cities
Gregory J. Dyson
Senior Vice President and Chief Operations
and Marketing Officer, ICMA-RC
Jeffrey L. Esser
Executive Director,
Government Finance Officers Association
Peter A. Harkness
Founder and Publisher Emeritus,
Governing Magazine
Scott D. Pattison
Executive Director,
National Association of State Budget Officers
William T. Pound
Executive Director,
National Conference of State Legislatures
Raymond C. Scheppach, PhD
Professor, University of Virginia Frank Batten
School of Leadership and Public Policy;
Former Executive Director, National Governors
Association
SLGE Staff
Elizabeth K. Kellar
President and CEO
Joshua M. Franzel, PhD
Vice President, Research
Amy M. Mayers
Communications Manager
Bonnie J. Faulk
Operations Manager
About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and
competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices
and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and
financial planning. The Center also brings state and local leaders together with respected researchers and features the latest
demographic data on the aging work force, research studies, and news on health care, recruitment, and succession planning
on its web site, www.slge.org.
777 N. Capitol Street NE | Suite 500 | Washington DC 20002-4201 | 202 682 6100 | info@slge.org
13-354
The Center gratefully acknowledges the financial support from ICMA-RC
to undertake this research project.
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Date: 6/2/2013FY14 Operating BudgetFY14 CM RECOMMENDED BUDGETPLANNING FUNDDESCRIPTIONFY14 CMRECOMMENDED BUDGETVEH MAINT FUND ALLOCATION $589.00 VEHICLE SUPPLIES $600.00 RENTS & LEASES $750.00 SUBSCRIPTIONS $1,000.00 BOOKS & REFERENCE MTRLS $1,150.00 GASOLINE & OIL $1,600.00 TELEPHONE $1,800.00 DUES & CERTIFICATIONS $3,550.00 REPAIR & MAINT- EQUIPMENT $3,600.00 INTERNET $3,799.00 OUT-OF-STATE $4,500.00 POSTAGE $4,500.00 GENERAL $7,050.00 ADVERTISING $7,200.00 MAINTENANCE CONTRACTS $8,000.00 OFFICE SUPPLIES $8,250.00 IN-STATE $10,550.00 M&E:OFFICE EQUIP+FURNITUR $12,500.00 COMPUTERS & SERVERS < $5K $16,000.00 COMPUTER SUPPLIES $16,700.00 CONSULTANTS & PROF SERV $91,500.00 TOTAL $205,188.00 VEH MAINT FUNDALLOCATIONVEHICLE SUPPLIESRENTS & LEASESSUBSCRIPTIONSBOOKS & REFERENCE MTRLSGASOLINE & OILTELEPHONEDUES & CERTIFICATIONSREPAIR & MAINT- EQUIPMENTINTERNETOUT-OF-STATEPOSTAGEGENERALADVERTISINGMAINTENANCE CONTRACTSOFFICE SUPPLIESIN-STATEM&E:OFFICEEQUIP+FURNITURCOMPUTERS & SERVERS <$5KCOMPUTER SUPPLIESPlanning FundFY14 Budget29