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05/17/2010-CC-Agenda Packet-Work SessionAGENDA CITY COUNCIL WORK SESSION MONDAY1 MAY 179 2010 6*00 PM 502 ELM STREET 1. Call Meeting to Order. 2. Discussion of Personnel Projection for 2011 Through 2016 3. Overview of Items on Regular Agenda. 4. Adjournment. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily accessible to the general public at all times, and said notice was posted on the following date and time: 2if '� . ,�? /C „ —at dC .' &7 km. and shall remain posted unfil in Tami Taber, City of Sang( This notice adjourned. r_ S A�r',�,�r1�r board on This facility is wheelchair accessible and accessible parl�ing spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at (940) 458-7930 for further information. (autgeh TEXAS City of Sanger, Texas Personnel Projection for 2011 through 2016 Prepared By: Mike Brice, City Manager Date: May 17, 2010 Purpose of Report: This document will discuss in detail the City's projected human resource needs over the next five years. It is important to note that these projections can and will be influenced by many factors and will certainly change over time. The purpose of this document is to provide a plan for future personnel and to prioritize personnel needs. Having a plan that takes a holistic look at the needs of the entire City is much more efficient than just looking at individual departments. Indeed, every department head will tell you that their department needs more people. The question becomes, which positions are the priority. Prioritization is more complicated that simply ranking the different positions as is discussed later in the report. Further, having a plan that looks at needs over a range of years provides a much better planning tool than just reviewing requests for additional employees each year during the budget process. Finally, this report is intended to be strategic in nature and scope in providing future staffing guidance. Decreases in revenues, combined with a slowdown ingrowth, have caused us to eliminate several open positions from the budget. Further, some budgeted positions remain unfilled for the same reasons. Our goal has been to be proactive in addressing budget concerns without impacting service levels. To date we have been successful in fulfilling that goal. However, we are now operating with a very lean workforce. As the economy recovers we will need to add these positions back into the budget. As we grow, we will also need additional positions to sustain the service levels now enjoyed by our citizens. Positions eliminated and defunded in the last two years: Economic Development Director Customer Service Tech. Two Utility Workers in Water Wastewater Plant Operator Electric Lineman 1 gee EXA5 Positions Currently Open: Assistant to the city Manager —Not to be filled at this time. Convert to Human Resources Director in the Future. Park Maintenance Worker — Not to be filled at this time. Mechanic — Not being filled at this time. Payroll/Accounting Tech. — The Administration Department have assumed payroll duties. Cheryl Estes CPA and the City Manager are handling finance and accounting. Ms. Estes is working on a part time/hourly basis. Plans are to hire a full time Finance Director in the future. Currently one full time position in both Streets and Water is filled with a temporary worker. Counting positions that have been eliminated or left open we have reduced our workforce by 15% over the last two years. It is anticipated that as the economy improves and construction picks back up, that all of the positions above will need to be filled and re -funded at some point with the exception of the Wastewater Plant Operator. 2 �autgen v i7TEXAS Discussion of factors affecting new positions: Obviously revenue is the major factor affecting when these positions can be filled. On the Enterprise Fund side an increase in construction will lead to an increase in revenues which will provide funding for those positions. However, it should be noted that a $50,000 increase in electric revenue does not correlate into $50,000 that can be used for hiring another lineman. The bulk of that increase will be offset by having to purchase the electric for resale and other operating costs. The actual increase when expenses are deducted might be in the $4000 range. The same is true to a lesser degree with water. On the General Fund side, increases in sales tax and property tax revenue, as well as other revenue streams, will be needed to fund these new positions. We should see these revenues begin to increase as the economy strengthens and construction rebounds. However, as shown later, the bulk of the new positions will be funded through the General Fund. Another factor would be new State or Federal mandates that would require additional personnel to meet the new requirements. Yet another factor would be different priorities by the Council on what positions they would want to fund. Succession is another important factor as you will see below. We must ensure that we have continuity of operations if someone leaves. There are a myriad of other factors that can increase or decrease the need for a certain position. As with any planning document, it is important to keep in mind that priorities will change over time. Discussion of new positions and priorities: Fire/EMS: We currently have 1 full time firefighter paramedic and 1 part time paramedic or EMT on each 24 hour shift. David works 9-6 on the weekdays he is not at Lewisville. When he is at Lewisville, we have another part time person help cover the day shift. At night and on the weekend, we use volunteers to cover the third position on the shift. However, it is becoming harder to find volunteers willing to fill those shifts. We have applied for a FEMA grant to hire six additional firefighters. If awarded, the Grant would pay the majority of their salaries for the next two years. We would then be required to fund their entire salaries in year three and beyond. This would give us 34 people on each shift, augmented by part time and volunteers. It would also reduce our dependence on part time and volunteers. If the Grant is not awarded, we will need to start funding these positions and add them incrementally over time. At some point in the future providing administration for the fire department will require that we fill the Fire Chiefs position full time. 1 anticipate this need in the next 5-10 years. However, if David were to leave before that time, we would probably want to look at filling it then. Parks, Water and Electric: These positions will have to be filled based on workload. As the parks continue to expand we will need to hire sufficient personnel to maintain them. I anticipate that the parks department will be one of the fastest growing departments over the next decade due to the 3 .u�geh zTEXAS expansion of our parks and recreation system. When building picks up again we will need to hire additional personnel in both Water and Electric to keep up with installation and service demand. Due to the circumstances surrounding the positions above, they have not been included in the ranking of priorities. Following is an explanation of why the other positions have been prioritized the way they have. Priority 1—Finance Director: As we discussed in an earlier workshop, we need to hire a full time finance director. This person would be a CPA with experience in municipal government finance. This person would oversee City finances and investments, be involved in budgeting and oversee the data processing department. Hiring a finance director would also free up some of mine and Tami's time and allow us to make hiring a Human Resources Director and Economic Development Director lower priorities. I anticipate filling this position in the 2011 budget. Much of the cost of this position would be absorbed by the salary of the accounting tech. position that is open and the current costs for CPA services. Priority 2 —Assistant Librarian: Vicky is doing an outstanding job at the Library and it runs very well under her leadership. However, Vicky will not be with us forever and will someday decide to retire. While the other Library staffers all do a good job, they do not have the required education and expertise to serve as head librarian. I believe that we need to bring someone on before Vicky leaves to ensure continuity of operations and to make sure that they are a good fit. I anticipate filling this position in the 2012 budget. Priority 3 —Heavy Equipment Operator, Streets: Currently parks and streets work closely together on larger street projects. As Parks responsibilities increase, Park personnel will be available less to assist with streets. This means that we will need to add an additional position in Streets. This is especially important as we ramp up street repairs and rehabilitation in the future. I anticipate filling this position in2012or2013. Note: If the Grant for the six firefighters is awarded this year we would have to start fully funding those positions in 2013. If grant funding is not awarded, we need to plan to add three firefighter positions in 2013. Therefore, no other positions are slated for funding in the 2013 budget year. Priority 4 —Police Sergeant: The police department's current organization is very flat. Currently, the only supervisors are the Chief and one Sergeant. This proposal is to add a second Sergeant's position. This will give us a supervisor on each of the three shifts. It will also give us another officer on patrol. I anticipate filling this position in 2014. Priority 5 —Police Officer of Undetermined Rank: As mentioned before, the Police Department is a flat organization. Both of the current supervisors are at or near eligibility for retirement. Ta ensure continuity of operations, we need to have experienced supervisors in place before the current ones retire. What rank this new position would be can be determined at a later date. I anticipate filling this position in 2015 or 2016. �aNge� v TEXAS Note: If we still have not received grant funding for the firefighter positions, we will need to look at adding three more positions in 2015 or 2016. Priority 6 —Human Resources Director: Currently Human resource duties are handled by the City Secretary, City Manager and our Administrative Assistant. At some point workload will require that we fill the Human Resource position with a full time person. However, I do not believe that this will be necessary in the near future and do not anticipate filling the position until 2016 or later. Priority 7 —Economic Development Director: Economic Development is an important function in any City. However, it is not currently a full time venture in Sanger. As the City grows it will be necessary fill this position full time. When it is filled, I believe that it should be funded by the 4A and 4B boards and not with general fund revenues. Therefore, I have not included it in the cost calculations. At this time, I Jo not see a need to fill this position now or in the near future. Projected Hirine by Year As Needed 2011 2012 2013 2014 2015-2016 later Parks Maint. Finance Asst. librarian 3 Firefighters' Police 3 Firefighters' H.R. Director Water Maint. Director Sergeant FT Fire Chief Elect. Lineman Heavy Equip. Police Officer E.D. Director 6 Firefighters' Operator $141,250 $87,500 $88,400 $150,000 $57,220 1 $207,220 $196,250 Note 1: If grant is received 6 firefighters would be hired in 2011. If not 3 would be hired in both 2013 and 2U1S Note: These numbers are at today's incumbent salaries and include benefits and taxes. They do not include secondary costs such as training, uniforms, and equipment. Cost: As mentioned earlier, the primary factor in filling any current open positions or new ones is having the revenue to pay for them. I believe that revenues next year will be at or below this year, especially on the General Fund side. Hopefully, revenues will begin to grow again after that, although I don't expect to see growth like we have enjoyed in the past. As you can see below, the bulk of the positions mentioned here are funded in the General Fund. To fund all of the positions called for would require General Fund revenues to grow by more than 25% by 2016. In the current economic climate it is imprudent to fill positions based on anticipated revenue increases. Therefore, positions will only be filled after we are relatively comfortable that revenue growth is sustainable. Cost of filling positions that are currently open and new positions anticipated. General Fund: $636,590 Enterprise Fund: $197,500 4A/46: $93,750 Total: $927,840 Review: This report will be reviewed and revised during the annual budget process each year. �C s Summary: Over the past two years we have mostly dealt with revenue shortfalls by not filling open positions. Positions have been left open in almost every department other than public safety. We have been able to leave these positions open and not affect service levels primarily due to a dramatic decrease in new construction. As new construction rebounds and service demands increase these positions will have to be refilled and new positions added. This document outlines what positions are anticipated to be needed over the next five years and when it is anticipated that those positions will need to be filled. It is important to state once again that filling these positions is dependent on many factors, the most important being sustainable revenue increases. Factors may also affect how the positions are prioritized and priorities may change in the future. This document provides a long term blueprint for future personnel needs. It will be used as a planning tool and guide in future budget preparation. It also provides insight to the Council and other interested parties into the City's current and future staffing needs. z � 0 0 m m Q Q � rr 3 O NW _ flr � N O' m O< 00 m m A � O r+ rr � O' C tt � c f'D N + Xm rt O + N Q m(D S � mh �. Q V O d n m C �- < N O l) T D o D O C m o O a Q a p m m rot O? • m< o r�D °' r) '^r mr N m m m M' �. d (A — 3 w O N O O C v y °' m (n p < rt 0 D Q Do — Q w 3 - O V N U1 W N INA W W N 1 N W m .3ti• O V N w` N N h w W N w iWA N P !° N C QQ m Q. 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W d d m m m City of sanger, Texas Personnel Projection for 2011 through 2o16 Background • Revenue decreases and slowdown ingrowth have caused us to cut or leave unfilled Ten full time positions through attrition. • This equals a 15% reduction in the work force. • As the economy recovers, these positions will need to be re -funded and re-fllled. • Future Growth will require more personnel to maintain service levels. Purpose of Report • Plan for future personnel needs • Look at needs from a holistic perspective • Prioritize those needs This report is strategic in nature and scope and is intended to be used as a planning tool. Projected needs and priorities are influenced by many factors and will certainly change over time. S/11/2010 1 Factors Effecting New Positions • Revenues: There must be a sustainable revenue source to pay for the positions • State and Federal mandates • Council priorities • Succession and continuity of operations • Changing priorities New Positions &Priorities Parks, Water and Electric • Will be filled based on need and funding. • The development of the Sports Park and other additional park space will require additional personnel. • Renewed construction will necessitate the need for additional personnel in Water & Electric. 5/11/2010 New Positions &Priorities Fire�EMS • Applied for grant to Fund 6 new firefighter positions • if Grant isn't received, plan to add 3 in 2013 and 3 in 2016 • Will continue to apply for Grant during that time if available. • Will need to make the Chief's position full time at some point in the future. New Positions &Priorities Priority � -Finance Director rofessional CPA needed on Staff • P • Reduces the need to hire HR and ED Directors • Anticipate hiring in 2011 • Much of cost will be covered by open position and current CPA expenses. 2 New Positions &Priorities Priority 2 -Assistant Librarian • Ensure continuity of operations • Increase program delivery • Anticipate filling in 2012 New Positions &Priorities Priority 5 -Police Supervisor of Undetermined Rank • Prepare for succession &provide supervision • Anticipate filling in zo�5 or 20�6 Priority 6 -Human Resource Director • Handle increased workload • Not anticipated until zo�6 or later 5/11/2010 New Positions &Priorities Priority 3 -Heavy Equipment Operator, Streets • Enhance ongoing street maintenance • Reduce reliance on Park personnel • Anticipate tilling in 2012 or 2013 Priority 4 -Police Sergeant • Provide additional supervisor • Anticipate filling in 2014 New Positions &Priorities PrioritY7-Economic Development Director manage increased economic development • To activity • To make economic development more proactive • Should be paid for by 4A & 4B • Anticipate filling when 4A & 4B revenues will allow without hamstringing projects 3 Cost Total Cost to General Fund SQ6,590 Total Cost to Enterprise Fund $197,500 Total Costto4A&4B $93.750 Total All Funds $927,840 Note: These numbers are at today's incumbent salaries and include benefits and taxes. They do not Include secondary costs such as training, uniforms, and equipment. Summary This plan will serve as a planning tool and guide for future budget decisions. It is also meant to give the Mayor, Council and other interested parties insight into the Cities current and future staffing needs. The plan will be updated each year as part of the budget process. 5/11/2010 Cost &Timing • No positions will be filled until sustainable revenue sources are available to fund them. ble means there is a history of revenue • Sustaina recovery and a reasonable certainty that it will continue. • Timing is an estimate only. Positions maybe filled earlier or later depending on numerous factors. • If we are awarded a FEMA SAFER Grant, six firefighters will be hired in 2o11. If not the plan is to add three in 2013 and three more in 2o16. n