Minutes 03/27/2017 - Laserfiche WebLink

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March 27, 2017  For four consecutive years since 2014, the city has invested $1million for School Bus Fleet Replacement. I am recommending to maintain this $1 million dollar level of funding. City Compensation This proposed budget addresses Employee Compensation as it relates to public safety, general employees, and consideration for a Living WageAdjustment. Public Safety With the FY 2018 Proposed Budget, I am recommending an increase in Public Safety Compensation. In order to remain competitive in the region, we are proposing to increase our Entry Level Public Safety salaries. It should be noted that we have not increased the Entry-Level salaries since 2011. With this proposed FY 2018 Budget, the increase will positively impact the city’s Public Safety positioning in the region. In order to attract, maintain, and retain public safety employees, we are using a multi-step initiative for recruitment and retention, with an average range between 2.5 to 10 per cent for sworn public safety employees. General Employees and Constitutional Officers Preparing the workforce of the future will require our city employees to adapt and positively respond to an ever changing working environment by leveraging technological advances and providing excellent customer service. Our employees are front line ambassadors that touch and provide the municipal services to our valued customers the citizens of Portsmouth daily. During FY 2018, I am proposing a 2.5% General Wage Increase effective July 1, 2017 and a $500 end-of -year bonus in December of 2017, for General and public safety employees, who were hired on or before January 1, 2017. In addition to the 2.5% General Wage Increase, I am also proposing a living wage salary adjustment to address City Employees who make less than thirty-thousand dollars annually. The FY 2018 budget also reserved funding for Governor McAuliffe’s proposed 2% salary increase for Constitutional Officers and their employees effective August 2, 2017. Other Compensation – Retirees In FY 2013 the city issued pension obligation bonds thereby improving the funding status of the city retirement systems. Therefore, I am proposing in the FY2018 budget a $500 supplement for retirees in the city retirement systems paid directly from the General Fund, instead of being funded from the Retirement Trust System. Fund Balance Usage The city’s sound, conservative financial policies and guidelines ensures the long-term financial stability of the city. Adherence to these policies assures a competitive bond rating and the ability to borrow funds for long-term capital needs at an effective interest rate. This proposed budget uses $5.8 million of General Fund Balance for one-time Capital projects and one-time General Fund expenditures. The city’s fund balance policy is to maintain reserves at 15% or above the General Fund revenues which helps the City maintain a strong investment bond credit rating of Double A.