FY23 Budget Executive Summary

Salaries

• Salaries make of 21.3 percent of the total budget. Salaries increased by $15.3 million or 9.1 percent from FY22 adopted budget.
• The city authorized a net of 58 new positions in the FY23 budget. Eighteen of these positions are for Central Fire Station where the savings from delaying hiring of FY24 will be used to fund equipment in FY23. Other positions fund Future in Focus initiatives, absorption of grant-funded positions and infrastructure-related projects.
• To attract, recruit and retain quality talent, the city has implemented several pay plan adjustments. Mid-year FY22, an additional 1.5 percent Cost of Living Adjustment (COLA) was implemented for general government employees only. In August 2022, Solid Waste Services implemented an additional 10 percent increase to recruit and retain field workers. The FY23 budget continues to fund regular step and merit increases along with a 3 percent Cost of Living Adjustment (COLA) for general government employees and a 3.5 percent market adjustment for civil service employees. An additional $500,000 was approved for public safety recruitment and retention in dispatch, detention and animal services. Solid Waste Services implemented an additional 10 percent increase to fill required CDL positions.

Benefits

• Benefits represent 5.4 percent of the total budget. Benefits are less compared to FY22 adopted budget by $4.4 million or 8.6 percent. The savings from the sale of the Pension Obligation Bonds (POBs) in FY22 continue to be realized in FY23. 
• Health insurance premiums did increase by 2 percent to cover claims’ increases and maintain adequate fund reserves.

Maintenance and Supplies

• Supplies makes up 1.3 percent of the total budget. Supplies increased by $226,529 or 2 percent from FY22 adopted budget. The increase primarily is due to vendor increases because of inflation and/or supply chain issues.
• Parts and Outside Work is 1 percent of the total budget. Parts and Outside Work increased by $4.1 million or 82.3 percent. The main driver of the increase in this category is fuel. Budget fuel per gallon increased to $4.20 per gallon from $2.55 per gallon in FY22. Parts and supplies are also a contributing factor to this increase because of inflation and supply chain shortages.
• Structure Maintenance represents 0.9 percent of the total budget. Structure maintenance is more compared to FY22 by $1.3 million or 20.3 percent. The city’s aging infrastructure requires more frequent and costly maintenance. Paving, milling and overlay materials have increased because of inflation and supply chain shortages.
• Equipment Maintenance makes up 2.7 percent of the total budget. Equipment maintenance increased by $5.6 million or 32.1 percent compared to FY22. This increase is mainly for fuel and maintenance charges to the departments from Fleet, as well as information technology hardware and software maintenance agreements.

Utilities

• Utilities represent 1.2 percent of the total budget. Utilities have remained relatively flat and are less compared to FY22 by a small amount of $20,151 or 0.2 percent.

Purchases and Treatment

• Purchases and Treatment constitute 5.1 percent of the total budget. Purchases and Treatment increased by $2 million or 4.7 percent from FY22. Purchases and treatment are for the city’s water system and these increases are from vendor pass-through costs.

Outside Services

• Outside Services represent 5.7 percent of the total budget. Outside Services increased by $7.1 million or 16.8 percent from adopted budget. Construction reimbursement (Brookfield), Supplement Benefit Plan (SBP) distributions and American Rescue Plan Act (ARPA) funded projects are the drivers of the increase.

Travel, Training, Dues

• Travel/Train/Dues accounts for 0.4 percent of the total budget. Travel/Train/Dues saw an increase of $455,725 or 16.9 percent from FY22. State mandate for an in-house CDL trainer and travel and training required to maintain certifications and licenses contributed to this increase.

Claims and Insurance

• Claims and Insurance make up 5.2 percent of the total budget. Claims and insurance is more compared to FY 22 by $3.1 million or 7.5 percent. The city’s health insurance and property casualty funds are self-insured. Health insurance claims and general liability losses are the primary drivers for the increase.

Debt Service

• The Debt Service rate for FY23 is $0.1597, an almost 3-cent shift from maintenance and operations (M&O) to fund the 2021 bond authorization of $563.4 million and $167 in Pension Obligation Bonds issued in 2022. Debt service also covers existing projects in streets, parks and city building improvements. The city will use $33.3 million from the remaining 2006 General Obligation (GO) bond authorization and $57.4 million from the 2021 GO bond authorization for funding projects related to city buildings, public safety, parks, libraries, and information technology. The General Debt Service FY23 budget is $62,406,152; FY22 was $44,277,096. Debt Service accounts for 12.3 percent of the total budget. Debt Service increased by $25.5 million or 31.6 percent.

Miscellaneous

• Miscellaneous represents 3.1 percent of the total budget. Miscellaneous is relatively flat compared with FY22 budget decreasing by $382,015 or 1.4 percent of the total budget. Economic development incentives were reduced with the lowered M&O rate from the half-cent tax reduction.

Capital

• Capital accounts for 19.9 percent of the total budget. Capital saw a slight decrease from FY22 by $197,120 or 0.1 percent. Due to inflation and supply chain shortages, some planned equipment replacements in FY23 were funded in FY22. FY23 budget continues to fund the Road to the Future and a Drainage Solutions for a Better Tomorrow five-year plans along with new significant projects such as the Central Fire Station, police information technology, fleet services and mission-critical facilities connectivity.

Transfers

• Transfers make up 14.5 percent of the total budget. Transfers increased by $9.6 million or 8.2 percent from FY22 adopted budget. Interfund transfers are for debt service, equipment and capital projects.