HomeMy WebLinkAbout20- 14-54
JANUARY 28, 2014 14-54 RESOLUTION
(CARRIED___5-2____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: APPROVE BUDGET ADJUSTMENT IN THE AMOUNT OF $73,000
TO FUND ADDITIONAL PERSONNEL COSTS AUTHORIZED BY
COUNCIL
INITIATED BY: CITY COUNCIL
WHEREAS, on November 26, 2013 the Oshkosh Common Council by Resolution
13-532 approved the 2014 Operating Budget making an assumption of a 1% adjustment of
salaries for non-represented employees; and
WHEREAS, on December 10, 2013 the Oshkosh Common Council approved
Resolution 13-564 as amended approving a 2% across the board market increase for
regular non-represented employees; and
WHEREAS, the full amount of this across the board market increase was not
included in the budget as adopted and the Council wishes to provide specific funding for
the proposed increase.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that:
1. That Unclassified Un-collectibles (Account # 100-0908-646900000) be
decreased in the amount of $10,000.
2. That Levy Revenue for Street Lighting (Account # 223-0460-4102-00000) be
decreased by $35,000.
3. That Street Lighting Electricity Expenses (Account # 223-0460-6471-00000) be
decreased by $35,000).
4. That Interest on Investments (Account # 100-0073-4908-00000) be increased by
$18,000.
5. That Interest on Special Assessments (Account # 100-0072-4910-00000) be
increased by $10,000.
6. That Unclassified/Adjustment of Salaries (Account # 100-0913-6100-00000) be
increased by $73,000.
BE IT FURTHER RESOLVED that within 10 days after passage of this resolution,
the City Clerk shall publish a class 1 notice as provided in section 65.90(5)(b) of the
Wisconsin Statutes.
CITY HALL
215 Church Avenue
P.O.Box 1130
Oshkosh5 9031130 City of Oshkosh
OIHKOIH
TO: Mayor and Members of the Common Council
FROM: Mark A Rohloff, City Manager
DATE: January 22, 2014
RE: Budget Amendment for Wage Adjustments for Non-represented Employees
BACKGROUND
At the December 10, 2013 Council meeting, Council authorized a 2% wage adjustment for non-
represented employees effective January 1, 2014. The budget adopted by the Council in November
made an assumption that non-represented employees would receive a 1% increase as of January 1. Due
to the discrepancy between the budgeted amount and the authorized amount, a budget adjustment is
necessary to align the 2%wage increase authorized by Council.
ANALYSIS
Staff has conducted a review of the additional funds that are necessary to fully fund a 2% wage
adjustment for non-represented employees. Staff has reviewed the impact of the pay-for-performance
(PFP) adjustments, as well as other assumptions that were not known to staff at the time the budget
was adopted. As a result, staff believes that only $73,000 in additional adjustments are necessary to
fully fund the 2%increase.
The attached spreadsheet identifies a variety of funding options for the Council to reach the necessary
$73,000. I have taken the liberty of recommending four adjustments to fund this gap. The first
expenditure reduction is for street lighting costs due to revised Public Service Commission rates. The
second expenditure reduction is for decreased write offs for uncollectible accounts. The two revenue
adjustments are for various revenues that Finance Director Nokes feels comfortable in making minor
adjustments at this time based on his experience with these revenues and current trends. The amount
proposed equals the $73,000 that is necessary. This attached sheet also provides additional options
should the Council wish to select alternatives to fund the $73,000.
RECOMMENDATION
Staff recommends the Council adopt the budget adjustment as shown on the attached resolution.
Respectfully submitted
Mark A. Rohloff
City Manager
Cc: Edward Nokes, Interim Finance Director
John Fitzpatrick, Assistant City Manager/Director of Administrative Services.
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Budget Adjustment Options
to Fund Additional Personnel Costs
Authorized by Council
Projected Target:
Budget Adjustment Option Amount $ 73,000
Delay in hiring replacement employees $ 25,000
Unclassified-uncollectibles $ 25,000 $ 10,000
Unclassified-unclassified expense $ 10,000
Interest on investments $ 50,000 $ 18,000
Interest on special assessments $ 35,000 $ 10,000
Reduced Street Lighting Costs due to revised PSC rates $ 35,000 $ 35,000
Reduce fuel costs in Central Garage $ 25,000 $ -
$ 205,000 $ 73,000