TITLE
HOLD a public hearing and consider an ordinance amending the FY 2017 Annual Budget and Plan of Municipal Services of the City of Killeen to fund employee step increases.
SUMMARY
AGENDA ITEM
FY 2017 Step Increase Budget Amendment
ORIGINATING DEPARTMENT
Finance
BACKGROUND INFORMATION
On October 6, 2016, a meeting was held by the ad hoc committee formed by City Council to identify budget cuts that equaled the cost of employee step increases for FY 2017. In attendance were councilmembers Richard Young, Juan Rivera, Jim Kilpatrick (by phone), Dr. Ann Farris, Chief Baldwin, Interim Chief Brank, Eva Bark and Jon Locke. The committee successfully identified cuts in the FY 2017 budget equal to the cost of the step increase.
On October 11, 2016, at a special City Council workshop, councilmembers requested clarification as to why the actual cost of the step increases ($528,902.71) was less than the estimated amount ($736,121) that was previously shared at the September 27, 2016 City Council meeting. The total variance between the two figures is $207,218.29.
DISCUSSION/CONCLUSION
The estimated amount ($736,121) was calculated by Finance early in the budget process. The amount was calculated assuming that all vacancies would be filled and that those individuals would receive a step increase during FY 2017. At that time, there were more than 140 vacant positions and the cost of the step increase attributable to the vacant positions was $120,917. The estimated amount also included a step increase for the SAFER grant employees that would become effective when the fire officers completed training. The SAFER grant employees will not receive a step increase until their one-year anniversary. This reduced the cost of the step increases for the SAFER employees from $101,583 to $42,330, a reduction of $59,253. After reviewing the actual cost of the increase ($528,902.71), staff realized that $8,591 in Workers Compensation expenses was not included.
A total of $1...
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