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HomeMy WebLinkAboutPackets - Council Packets (893) AGENDA ORO VALLEY TOWN COUNCIL BUDGET WORK SESSION MAY 9, 2007 ORO VALLEY TOWN COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE BUDGET WORK SESSION - AT OR AFTER 5:30 p.m. CALL TO ORDER ROLL CALL DISCUSSION OF THE PUBLIC WORKS DEPARTMENT'S 1. REVIEW AND DIS BUDGETS 2. PRESENTATION AND DISCUSSION OF TOWN MANAGER'S RECOMMENDED COMPENSATION PLAN FOR FY 2007/08 TO INCLUDE COST OF LIVING ADJUSTMENTS, MERIT AND PUBLIC SAFETY MERIT STEP PLAN RECOMMENDATIONS 3. DISCUSSION OF PROPOSED EMPLOYEE RECLASSIFICATIONS AND SALARY MARKET ADJUSTMENTS FOR FY 2007/08 4. REVIEW OF FOLLOW-UP ITEMS FROM MAY 5TH TOWN COUNCIL BUDGET STUDY SESSION ADJOURNMENT POSTED: 05/08/07 2:00 p.m. cp The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk's Office at (520)229-4700. TOWN OF ORO VALLEY 2 COUNCIL COMMUNICATION MEETING DATE: May 9, 2007 TO: HONORABLE MAYOR& COUNCIL FROM: Sandra L. Abbey, Human Resources Director SUBJECT: Discussion of Town Manager's recommended compensation plan for FY 2007-2008 including COLA, Merit and Step Plan Adjustments SUMMARY: Following the Study Session of 5/5/07, it is clear that a discussion of certain compensation and pay practice procedures will be of benefit. Attached is information on the differences between the Town's Step Pay Plan and Salary Grade Plan, including pay increase methods for both plans and for across the board, COLA and other adjustments. ATTACHMENTS: Discussion Packet including discussion points, definitions, a copy of the Step Plan and Salary Grade Plan, information on the cost of implementing Step increases and Merit increases, plus historical data on COLA and Merit increases since FY 01-02. SUGGESTED ACTION: Direction to staff on changes to, and implementation of the Step Plan, Salary Grade Plan, Cost of Living and other associated pay increases contained in the Town Manager's recommended budget for FY 07-08. Human Resources Directo 0 ad/LOAA Town Manager I Discussion Item: Differences between Step Plan versus Salary Grade Plan General Philosophy Difference Step Plan recognizes seniority and years of experience for staff members with essentially the same skill set for a given job title. -Salary Grade Plan recognizes that within any classification, individuals possess differences in skills, education, abilities and performance. STEP PLAN and STEP INCREASES Step plans are valuable for positions where most individuals within any given job have the same general skill set and that the major indicator of performance is more years of experience. Step increases are pre-determined , and as long as performance is meeting acceptable standards, the individual will I move to the next step of the plan annually. Town of Oro Valley step increases are built into the plan at approximately 5% . m r i o J 0 r p M 0< r O CD o CD CD 0 . CD O ooB 5CDQ n 'v (CD 0_ 73 nCD 3 0 � 0 (Dn' — � � CD 0 % U) U) ' = 0�o -n C/) w n' D a -_+, —I a)o -o CD C CD CD 3 CD r . CD CD 0 O O D D n' (' �' - —1 V) O ,-+ Cf) _. CD o.LU 5. O n D l v 70 Cn D CP W -N W 01 W W O .N. -N co N _pfJ9 - -coO -En 0) -en -.4W A to fig - -EA -EA 01 < W -En) 9 '3 - N) .. - - N) - .. - 00 N) - N N) _a -1, cn " 1 0) N N W -P 4 oo O -.1 01 N -1 N 01 4 O 00 -N Co Com ' � 00 � N 0) (0 N - 0 O - N (0 O -I. Cfl O W a` O 00 .� C31 N) W W O � CO �i �I N) Co co N O O V) 01 CA) -P. 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CO cn N) -N 01 W O jV CO N) - 1 IN N W is, Cfl 6 W Co W Orn O co Co - 00 W W 0 CO 0) CD 73 to to {E9 {E9 -EA f/) {A C) ko �1 -09 Co -et) _p -et) (0 Co -EA 0,) to 'Cs N N N 0 O N) �! co N �I _r_-2N Oo Cr 00 (r\51) Co w O :. IN 01 O co ea O N -N W 01 cn W co Cfl co O co W O = cn -EA -EA f!9 { ) -EA {-,) -CO 01 CO to 000 to 0) Co to 01 to 0) tft 'CS N N �- N �- N �- N V N - 01 co 00 W O N N co W op 01 -,I 00 p 4N. 4- Cr -.. co 00 6 01 _, CO of COW CO - -� - N) — 4 cn Co co cn {(9 -69 - {69 {69 { 01 N) C31 co N N w W W co W 00 Co Co co 0 .N Co O - . � co 4 oi Salary Grade Plan and Merit Increases Within any job classification or salary grade there may be a wide variety of tasks and responsibilities brought by the individual. Individuals are placed anywhere along the continuum of the salary range that is commensurate with their skills, education, abilities, experience, level of responsibility, scope of job duties, market pay for the position, and performance in the job. Based on the combination of factors above, and continued performance in the job, the employee moves along the salary range at a varying pace (not pre-determined step amounts) — by receiving earned merit increases that could range from 1 `)/0 to 10%, depending on budget and an organization's pay policies. Historically, Town of Oro Valley potential merit increases have been between 3% and 5% over the last several years. Depending on the performance evaluation, and pay practices, the merit amount can be lower than the top amount listed. Town Of Oro Valley Salary Grade Structure DRAFT DRAFT FY 2007-2008 Salary Grade Minimum Midpoint Maximum Titles within Grades 1 $5.51 $6.89 $8.27 hourly rate $11,460.80 $14,326.00 $17,191.20 annualized 2 $5.65 $7.06 $8.47 $11,747.32 $14,684.15 $17,620.98 3 $5.79 $7.24 $8.68 $12,041.00 $15,051.25 $18,061.50 4 $5.93 $7.42 $8.90 $12,342.03 $15,427.54 $18,513.04 5 $6.08 $7.60 $9.12 $12,650.58 $15,813.22 $18,975.87 6 $6.23 $7.79 $9.35 $12,966.84 $16,208.55 $19,450.26 7 $6.39 $7.99 $9.58 $13,291.01 $16,613.77 $19,936.52 8 $6.55 $8.19 $9.82 $13,623.29 $17,029.11 $20,434.93 9 $6.71 $8.39 $10.07 $13,963.87 $17,454.84 $20,945.81 10 $6.88 $8.60 $10.32 $14,312.97 $17,891.21 $21,469.45 11 $7.05 $8.82 $10.58 $14,670.79 $18,338.49 $22,006.19 12 $7.23 $9.04 $10.84 $15,037.56 $18,796.95 $22,556.34 13 $7.41 $9.26 $11.12 $15,413.50 $19,266.88 $23,120.25 14 $7.60 $9.49 $11.39 $15,798.84 $19,748.55 $23,698.26 15 $7.79 $9.73 $11.68 $16,193.81 $20,242.26 $24,290.72 16 $7.98 $9.98 $11.97 $16,598.66 $20,748.32 $24,897.98 17 $8.18 $10.22 $12.27 $17,013.62 $21,267.03 $25,520.43 18 $8.38 $10.48 $12.58 Lifeguard $17,438.96 $21,798.70 $26,158.44 19 $8.59 $10.74 $12.89 $17,874.94 $22,343.67 $26,812.40 20 $8.81 $11.01 $13.21 $18,321.81 $22,902.26 $27,482.72 21 $9.03 $11.29 $13.54 $18,779.86 $23,474.82 $28,169.78 22 $9.25 $11.57 $13.88 Library Page $19,249.35 $24,061.69 $28,874.03 Water Safety Instructor 23 $9.49 $11.86 $14.23 $19,730.59 $24,663.23 $29,595.88 24 $9.72 $12.15 $14.58 Pool Shift Supervisor $20,223.85 $25,279.81 $30,335.78 25 $9.97 $12.46 $14.95 $20,729.45 $25,911.81 $31,094.17 26 $10.22 $12.77 $15.32 $21,247.68 $26,559.60 $31,871.52 27 $10.47 $13.09 $15.71 $21,778.87 $27,223.59 $32,668.31 28 $10.73 $13.42 $16.10 Office Assistant $22,323.35 $27,904.18 $33,485.02 Recreation Aide 29 $11.00 $13.75 $16.50 $22,881.43 $28,601.79 $34,322.15 30 $11.28 $14.09 $16.91 Asst Pool Manager $23,453.47 $29,316.83 $35,180.20 Park Monitor Maintenance Worker 31 $11.56 $14.45 $17.34 $24,039.80 $30,049.75 $36,059.70 32 $11.85 $14.81 $17.77 Library Customer Service Rep $24,640.80 $30,801.00 $36,961.20 Recreation Leader Asst Recreation Manager Town Of Oro Valley Salary Grade Structure DRAFT DRAFT FY 2007-2008 Salary Grade Minimum Midpoint Maximum Titles within Grades 33 $12.14 $15.18 $18.21 Law Clerk(Intern) $25,256.82 $31,571.02 $37,885.23 Sr Office Assistant Transit Driver 34 $12.45 $15.56 $18.67 $25,888.24 $32,360.30 $38,832.36 35 $12.76 $15.95 $19.14 Construction Clerk $26,535.44 $33,169.30 $39,803.17 HR Assistant 36 $13.08 $16.35 $19.61 Accounting Clerk $27,198.83 $33,998.54 $40,798.24 Court Clerk Water Utility Customer Service Rep 37 $13.40 $16.75 $20.10 Lead Transit Driver $27,878.80 $34,848.50 $41,818.20 Sr Public Works Maintenance Worker Transit Dispatcher 38 $13.74 $17.17 $20.61 Permit Technician $28,575.77 $35,719.71 $42,863.66 Library Associate 39 $14.08 $17.60 $21.12 Heavy Equipment Operator $29,290.17 $36,612.71 $43,935.25 HR Technician Legal Secretary Office Specialist Traffic Signs/Markings Worker 40 $14.43 $18.04 $21.65 Sr Parks Maintenance Worker $30,022.42 $37,528.02 $45,033.63 Zoning Inspection Technician 41 $14.79 $18.49 $22.19 Sr Accounting Clerk $30,772.98 $38,466.22 $46,159.47 Sr Court Clerk Water Utility Operator 42 $15.16 $18.96 $22.75 $31,542.30 $39,427.88 $47,313.46 43 $15.54 $19.43 $23.32 Sr Permit Technician $32,330.86 $40,413.58 $48,496.29 Sr Traffic Signs/Markings Worker Management Intern 44 $15.93 $19.92 $23.90 Aquatics Manager $33,139.13 $41,423.92 $49,708.70 Courtroom Clerk Development Coordinator Facilities Maintenance Technician Paralegal I Parks Maintenance Crew Leader Sr Heavy Equipment Operator Sr Office Specialist Traffic Signs/Markdings Crew Leader Transit Coordinator 45 $16.33 $20.41 $24.50 Planning Technician $33,967.61 $42,459.51 $50,951.42 f 46 $16.74 $20.92 $25.11 Water Utility Operator II $34,816.80 $43,521.00 $52,225.20 Zoning Inspector 47 $17.16 $21.45 $25.74 Accountant 1 $35,687.22 $44,609.03 $53,530.83 Civil Engineering Technician GIS Technician Heavy Equipment Mechanic Sr Library Associate Streets&Drainage Crew Leader Facilities Maintenance Crew Leader Traffic Technician Contracts Coordinator Pavement Specialist 48 $17.59 $21.98 $26.38 Multimodal Coordinator $36,579.40 $45,724.25 $54,869.10 Water Utility Customer Services Supervisor 49 $18.03 $22.53 $27.04 Paralegal ll $37,493.89 $46,867.36 $56,240.83 50 $18.48 $23.10 $27.71 Building Inspector $38,431.23 $48,039.04 $57,646.85 Constituent Services Coordinator Deputy Town Clerk Administrative Coordinator Recreation manager Sr Zoning Inspector Grants Coordinator Town Of Oro Valley Salary Grade Structure DRAFT DRAFT FY 2007-2008 Salary Grade Minimum Midpoint Maximum Titles within Grades 51 $18.94 $23.67 $28.41 Construction Inspector $39,392.02 $49,240.02 $59,088.02 Crime Analyst 52 $19.41 $24.26 $29.12 Building Permit Manager $40,376.82 $50,471.02 $60,565.22 Court Administrator Lead Water Utility Operator Police Administrative Services Manager 53 $19.90 $24.87 $29.85 HR Analyst $41,386.24 $51,732.80 $62,079.35 Librarian Sr Civil Engineering Tech 54 $20.39 $25.49 $30.59 $42,420.89 $53,026.12 $63,631.34 55 $20.90 $26.13 $31.36 Building Inspector II $43,481.41 $54,351.77 $65,222.12 Economic Development Specialist IT Technician Planner Plans Examiner Sr Accountant Water Conservation Specialist 56 $21.43 $26.78 $32.14 GIS Analyst $44,568.45 $55,710.56 $66,852.67 Public Information Officer 57 $21.96 $27.45 $32.94 Plans Examiner II $45,682.66 $57,103.33 $68,523.99 Water Utility Regional Coordinator I58 $22.51 $28.14 $33.77 Budget&Mgmt Analyst $46,824.73 $58,530.91 $70,237.09 Civil Engineering Designer Engineering Design Reviewer Special Projects Coordinator 59 $23.07 $28.84 $34.61 Sr Librarian $47,995.35 $59,994.18 $71,993.02 Zoning Program Supervisor 60 $23.65 $29.56 $35.48 Chief Building Inspector $49,195.23 $61,494.04 $73,792.84 Management Assistant Sr Planner Streets Superintendent 61 $24.24 $30.30 $36.36 Construction Manager $50,425.11 $63,031.39 $75,637.67 62 $24.85 $31.06 $37.27 $51,685.74 $64,607.17 $77,528.61 63 $25.47 $31.84 $38.21 Database Analyst $52,977.88 $66,222.35 $79,466.82 Webmaster 64 $26.11 $32.63 $39.16 Civil Engineer $54,302.33 $67,877.91 $81,453.49 Transit Services Administrator Water Utility Project Manager Stormwater Manager 65 $26.76 $33.45 $40.14 Accounting Supervisor $55,659.89 $69,574.86 $83,489.83 Asst Building Official Safety&Risk Manager Principal Planner Network Administrator 66 $27.43 $34.29 $41.14 Asst Town Prosecutor $57,051.38 $71,314.23 $85,577.08 Civil Attorney Water Distribution Supervisor Water Production Supervisor 67 $28.11 $35.14 $42.17 Library Administrator $58,477.67 $73,097.09 $87,716.50 68 $28.82 $36.02 $43.23 $59,939.61 $74,924.51 $89,909.42 69 $29.54 $36.92 $44.31 $61,438.10 $76,797.63 $92,157.15 70 $30.28 $37.84 $45.41 Civil Engineer $62,974.05 $78,717.57 $94,461.08 Traffic Engineer 71 $31.03 $38.79 $46.55 Police Lieutenant $64,548.40 $80,685.51 $96,822.61 PW Operations Division Manager Water Utility Administrator 72 $31.81 $39.76 $47.71 Community Relations Administrator $66,162.11 $82,702.64 $99,243.17 Procurement Administrator 73 $32.60 $40.75 $48.91 Water Utility Engineering Division Manager $67,816.17 $84,770.21 $101,724.25 Town Of Oro Valley Salary Grade Structure DRAFT DRAFT FY 2007-2008 Salary Grade Minimum Midpoint Maximum Titles within Grades 74 $33.42 $41.77 $50.13 $69,511.57 $86,889.46 $104,267.36 75 $34.25 $42.82 $51.38 Development Review Division Manager $71,249.36 $89,061.70 $106,874.04 Economic Development Administrator Engineering Division Manager 76 $35.11 $43.89 $52.67 $73,030.59 $91,288.24 $109,545.89 77 $35.99 $44.99 $53.98 Chief Civil Deputy Attorney $74,856.36 $93,570.45 $112,284.54 Police Commander Town Prosecutor 78 $36.89 $46.11 $55.33 Building Safety Director $76,727.77 $95,909.71 $115,091.65 IT Director Parks&Recreation Director Planning Director Town Clerk 79 $37.81 $47.26 $56.72 HR Director $78,645.96 $98,307.45 $117,968.94 80 $38.76 $48.44 $58.13 Asst Police Chief $80,612.11 $100,765.14 $120,918.17 81 $39.72 $49.66 $59.59 $82,627.41 $103,284.27 $123,941.12 82 $40.72 $50.90 $61.08 Finance Director $84,693.10 $105,866.38 $127,039.65 Magistrate Judge Public Works Director/Town Engineer Water Utility Director 83 $41.74 $52.17 $62.60 Town Attorney $86,810.43 $108,513.03 $130,215.64 84 $42.78 $53.47 $64.17 Police Chief $88,980.69 $111,225.86 $133,471.03 85 $43.85 $54.81 $65.77 $91,205.21 $114,006.51 $136,807.81 86 $44.94 $56.18 $67.42 Asst Town Manager $93,485.34 $116,856.67 $140,228.00 87 $46.07 $57.59 $69.10 $95,822.47 $119,778.09 $143,733.70 88 $47.22 $59.03 $70.83 $98,218.03 $122,772.54 $147,327.05 89 $48.40 $60.50 $72.60 $100,673.48 $125,841.85 $151,010.22 90 $49.61 $62.01 $74.42 $103,190.32 $128,987.90 $154,785.48 91 $50.85 $63.56 $76.28 $105,770.08 $132,212.60 $158,655.11 92 $52.12 $65.15 $78.18 $108,414.33 $135,517.91 $162,621.49 93 $53.43 $66.78 $80.14 $111,124.69 $138,905.86 $166,687.03 94 $54.76 $68.45 $82.14 $113,902.80 $142,378.50 $170,854.21 95 $56.13 $70.16 $84.19 Town Manager $116,750.37 $145,937.97 $175,125.56 96 $57.53 $71.92 $86.30 $119,669.13 $149,586.42 $179,503.70 97 $58.97 $73.71 $88.46 $122,660.86 $153,326.08 $183,991.29 98 $60.45 $75.56 $90.67 $125,727.38 $157,159.23 $188,591.07 99 $61.96 $77.45 $92.94 $128,870.57 $161,088.21 $193,305.85 100 $63.51 $79.38 $95.26 $132,092.33 $165,115.42 $198,138.50 Cost of Living or Across The Board Increases Preserve individual salaries in relation to market changes (thus mitigating the need for wholesale market adjustments, and relieving the problem of internal wage compression). When applied to the salary structures, keep the entire structure in-line with market changes (reducing the need for frequent classification changes or step plan restructuring). Can be used in lieu of Merit or Step increases if budgets don't allow for Merit or Step increases in a given fiscal year. In that type of situation, even though employees are not rewarded for performance or seniority, at least their salaries will not be eroded completely by inflationary and market changes. The Town Manager's budget recommends an across the board increase of 5%, of which 3.9% reflects the projected cost of living component, and 1 .1 % would replace the merit and step adjustments for this budget year. Cost to award step increases would be approximately $91 ,627 total. Cost to award merit increases would be approximately $75,900 per percent Historical COLA/Merit awards FY 01 -02 COLA 3. 3% Merit up to 5% FY 02-03 COLA 1 .5% Merit up to 4% FY 03-04 ❑ COLA 0 lump sum of 3% to employees earning under $60K; and of$500 for employees earning over $60K FY 04-05 ❑ COLA 1 .6% Merit up to 4% FY 05-06 • COLA 2. 3% Merit up to 4% FY 06-07 LJ COLA 3% Merit up to 4% • TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: May 9,2007 TO: HONORABLE MAYOR& COUNCIL FROM: Sandra L. Abbey, Human Resources Director SUBJECT: Proposed Employee Reclassifications and Salary Market Adjustments for FY 2007/2008 SUMMARY: The Town Manager's recommended budget includes 17 reclassifications and 8 Market Adjustments. Originally, there were 36 reclassifications requested. The HR Director and Town Manager carefully reviewed each request for appropriate justification, and to ensure reclassified employees met the skills, education, experience and abilities required for the new position. Of the approved 17, seven are promotions, ten are reclassifications (including one down-grade), plus there were three title changes that resulted in no pay grade change (not listed as reclassifications on the attached chart, but included as changes in the departmental budget detail). The market adjustments were recommended based on salary study data. These positions met the criteria for market adjustments for classifications in which the Town's midpoint for the classification is more than 10%below the relevant average market midpoint. ATTACHMENTS: Chart listing Reclassifications, Promotions, and Market Adjustments with salary increase amounts. 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F- a. a. a_ a. a. � � � > � � Market Adjustments and Equity Adjustments, Market Adjustments are recommended by the Human Resources Director when salary study data indicates that a classification is being paid more than 10% below market average (this applies not to individual salary, but to the classification as a whole). The classification should be moved to the salary grade with the midpoint closest to the average market midpoint. Any incumbents in the grade should have their salaries adjusted proportionate to the difference in the old salary grade versus the new salary grade unless the incumbent's salary is at or above the new midpoint, in which no individual increase is required. Equity Adjustments are recommended by the Human Resources Director when a review of individual salaries indicates that an individual is being paid substantially lower than other employees in the same job classification and with substantially the same skills, education, abilities, experience, level of responsibility, scope of job duties, market pay for the position, and performance in the job. An equity adjustment is provided to an individual to correct an inequitable situation, and not applied to the job classification as a whole. Reclassifications and Promotions Reclassifications result when a new job is created based on the needs of the Department in completing their goals and objectives. In many cases, existing employees take on new tasks and responsibilities over time and at some point it is recognized that the employee is working above and beyond the scope of their position. In other cases, no one is completing the needed tasks, however, department undertakes a reorganization of the job duties and tasks, and reclassifies employees to match the reorganized job duties. This results in some jobs being created, others eliminated, but existing employees filling newly created positions. Reclassifications may, or may not result in a change in pay for the employee, so for each request for reclassification, the Human Resources Director oversees an update of the job description and a salary study to determine whether a pay change is required. Reclassifications can result in promotion if the new position is in a salary grade that is higher than the original position, or a down-grade if the new position is in a salary grade lower than the original, or a title change, if the new position is in the same salary grade as the original position. Promotions — The Town of Oro Valley currently does not have a method for promoting employees within their job family or along their career path. This means that there is little motivation for an employee to grow and develop their skill-set. For this reason, Supervisors have used the Reclassification process to provide promotional opportunities to those employees who work above and beyond the requirements of their current position. Competitive Promotions versus Non- competitive Promotions t- Competitive Promotions occur when a department has an open position, which is posted through the internal recruitment process, and which is filled by promoting an internal candidate. Non-competitive Promotions occur when there is not an open position in a department, but when an existing employee meets the skills, education, and abilities of a higher level classification. Currently, the only method the Town has to reward and recognize this concern is through the reclassification process. What are the Pros and Cons of Competitive and Non-Competitive Promotions? Competitive — Pro — All employees who meet the requirements for the open position have the opportunity to apply for, and be considered for, the position. Competitive — Con — Is only available if there is a vacancy and does not recognize or motivate employees in existing positions to improve and develop to a higher level in their job-family or career path, absent a vacancy. Non-Competitive — Pro — Establishes a way for existing employees to move into positions of higher responsibility as they grow and develop their skills, education and abilities. Helps create a career- path and motivates employees to improve along that path. Non-Competitive — Con — If there is not a supporting succession or career path policy to establish criteria for being considered for promotion, this can be seen as too subjective with supervisors promoting their "favorites" rather than basing the promotions on true career development. Under differing circumstances there is a valid place for each type of promotion, provided clear procedural guidance. Development of guidance on promotions along an established career path, so Department Heads are not using the Reclassification program for this ppjspossthThe Human Resources Director will work with the Town Manager to develop an Administrative Directive on this subject. Effect on COLA from Healthcare Increases Police Civilian Officer Employee Annual Base Salary $ 46,529 $ 46,529 5% Cost of Living Adjustment (Gross) 2,326 2,326 Annual Increase in Benefits: Healthcare 160 160 Dental 18 18 Retirement 356 456 Total Increases $ 534 $ 633 Taxes: 15% for State and Federal Taxes $ 349 $ 349 7.65% for Social Security/Medicare $ 178 $ 178 Total Taxes $ 527 $ 527 5% Cost of Living Adjustment (Net) $ 1,266 $ 1,166 5/9/2007 MEMORANDUM DATE: May 9, 2007 TO: Honorable Mayor and Council FROM: David Andrews, Town Manager Stacey Lemos, Finance Director RE: Follow-up Issues from May 5th Budget Review Session A number of issues were raised during the Mayor and Council's Budget Review Session on May 5th. This memorandum serves as staff follow-up to these issues. 1.) Issue: Fiscal Impact of implementing merit increases instead of cost of living adjustments (COLA). Response: The fiscal impact of a merit increase on the FY 2007/08 budget is $75,901 for every 1% implemented for civilian employees and $91,627 to implement the STEP plan for Public Safety personnel versus a 5% budgeted COLA in the amount of$877,468. 2.) Issue: Request for a listing of RTA projects included in the Town Manager budget, total costs and funding. Response: RTA Project - Total Project Cost RTA Funding La Cholla/Lambert Intersection $900,000 $900,000 La Cholla/Glover Intersection 600,000 600,000 Transit Coordinator 63,680 63,680 3.) Issue: Adjust Police personnel to include one (1) additional Sergeant position to replace the Professional Development & Training Administrator position being transferred to Human Resources as the Safety and Risk Manager. Response: The adjustment has been made to the personnel budget in the Police department and includes $92.4k for the addition of one (1) Sergeant. 4.) Issue: A history of Police Officer per resident ratio starting in 1990 in five year increments. Response: Officers per Year Officers Population 1000 1990 27 6,670 4.05 1995 43 19,657 2.19 2000 63 29,700 2.12 2005 86 41,072 2.09 Current 99 44,180 2.24 Proposed 2007 103 44,783 2.30 5.) Issue: Information on Heritage Fund grants. Response: Arizona voters created the Heritage Fund in 1990, designating up to $10M a year from lottery ticket sales for the conservation and protection of the State's wildlife and natural areas. The fund is managed to maximize return on investment by leveraging federal dollars and by investing in projects, activities, and community-based grants designed to offer sustained benefits. 6.) Issue: Request letter to Wal-Mart regarding the status of donation for Naranja Town Site. Response: The Parks & Recreation Director and Town Manager will draft a letter to Wal-Mart requesting funding. 7.) Issue: Parks & Recreation has requested a management assessment to be performed of their department in FY 2007/08. Response: $50k has been added to the FY 2007/08 Outside Professional Services line item budget in the Parks & Recreation department. 8.) Issue: What resources will be required to complete the Oro Valley trails plan update which is currently underway in coordination with Pima Trails Association. Response: It is estimated that approximately 120 hours of staff time will be required over the next seven months to complete this project. Additionally, it is estimated that approximately $200 in incidental expenses will be utilized. 9.) Issue: The usage of Lambert Lane Park. Response: There are approximately 7,000 patron trips made to the park each year. 10.) Issue: What is the financial impact on other departments of the dissolution of the Community Development department. Response: With the dissolution of the Community Development Administration budget of $419,279 in FY 06/07, the respective costs associated with that department have been absorbed in FY 2007/08 as follows: Department FY 07/08 :; Parks & Recreation $113k Building Safety 30k Planning & Zoning 30k Town Manager 246k $419k 11.) Issue: Add a line item in General Administration for funding requests from outside sources (i.e. Santa Cruz Heritage Alliance). Response: A line item entitled "Funding Requests from Outside Sources" has been created in the General Administration budget for $24k for this purpose. 12.) Issue: Update on ERP implementation. Response: A future Study Session will be scheduled to update Council on the status of implementation. 13.) Issue: Request a cost break-down in the software maintenance & licensing line item for the ERP system and Permits Plus in Information Technology's Administration program. Response: In the FY 2007/08 budget, $70,090 has been allocated to Permits Plus and $35,000 is for ERP annual maintenance fees. 14.) Issue: The Finance department has requested an increase in Outside Professional Services for Sales Tax Audit services. Response: This line item has been increased from $36k to $48k. 15.) Issue: An improvement to the Capital Improvement Project (CIP) process is needed. Response: The Finance staff will evaluate the current CIP process and make future recommendations for improvement next fiscal year. 16.) Issue: Request for a five year history on the Bed Tax allocation and the payments to various organizations. Response: Year Tax Rate Allocation ° 75% paid to MTCVB 1990 1.0% 25% retained in General Fund 2000 3.0% 75% of first 1% paid to MTCVB 2% rebated to El Conquistador for 10 yrs Remaining portion retained in General Fund 2006 6.0% 1% paid to MTCVB 2% rebated to El Conquistador .5% for Parks & Recreation services 1.5% for Naranja Town site 1°/0 for Economic Development marketing 17.) Issue: A comparison of requested positions for FY 2006/07 to recommended positions for FY 2007/08. Response: Please reference Attachment A. 18.) Issue: What are the specific costs/budgetary impacts of addressing the Environmentally Sensitive Land Ordinance (ESLO). Response: Finance staff will work with Planning & Zoning staff to bring this information to the Town Council at a future budget review session. 19.) Issue: A request for Town wide programs and their FY 2007/08 budgeted amounts. Response: Please reference Attachment B. 20.) Issue: Water Utility has requested an increase of $1.1 M to their capital improvement projects based on estimated increases in construction costs. Response: $1.1 M has been added to the Water Utility's capital outlay budget. This increase will be funded from the Water Utility's cash reserves. 21.) Issue: Upon completion of the Building Safety Implementation Plan, develop a system to measure consumer feedback. Response: Staff will provide a response to this issue at a future budget work session. 22.) Issue: At Council's request, an objective needs to be added to the Town Manager's Strategic Plan which references the planning of Town facilities. Response: An objective will be added to the Town Manager's Strategic Plan for the planning of Town facilities. 23.) Issue: A request for a comparison of personnel in Legal departments in jurisdictions with populations between 25,000 — 70,000. Response: Please reference Attachment C. 24.) Issue: Staff has requested a reduction in the Holiday Pay line item in the Police departments FY 2007/08 budget. Response: The Holiday Pay line item has been adjusted from $90k to $55k. 25.) Issue: Public Works has requested an increase in the Highway Fund for the office lease line item for the rental of modular units. Response: The office lease line item has been adjusted from $14.9k to $23k. 26.) Issue: Public Works has requested the addition of a capital project in the Highway Fund for an overlay on Rancho Vistoso Blvd in the amount of $900k. Response: $900k has been added to the arterial roadways line item. Concurrently, $900k has been added as a revenue source from PAG to offset the expenditure. 27.) Issue: Staff has been advised the $500k reported in the FY 2007/08 Honey Bee Development fund will not be received from the Tohono O'odham grant. Response: $500k has been deleted as a revenue source from the Honey Bee Development fund and the contingency line item reduced by $500k. 28.) After a further review of revenues in the General Fund, an adjustment of an additional $474,000 has been made to the Utility Sales Tax revenue. As a result, the General Fund's contingency reserve has also increased by $474k. Stacey Lemos Finance Director 5,- ad/4,4-- David Andrews cc: All Department Heads Town Manager Town of Oro Valley FY 2007/08 Budget Council Line Item Changes Through May 5, 2007 Department/Division Line Item _ Increase/(Decrease) GENE AL FUND ,w?Rg ' Recurring Police Department Addition of one (1) Sergeant position $ 92,413 Finance Increase in Sales Tax audit recovery service 12,000 Police Department Reduction of Holiday Pay (35,000) Increase in Utility Sales Tax revenue (474,000) I Subtotal Recurring $ (404,587) Non-Recurring Parks & Recreation Management Assessment study $ 50,000 General Administration Funding requests from outside sources 20,000 Heritage Fund grant for dog park at Riverfront Park (25,000) Subtotal Non-Recurring $ 45,000 Total Council Adjustments $ (359,587) Contingency Per Manager's Recommended $ 9,449,754 ' Total Council Adjustments 359,587 Contingency Per Tentative Budget $ 9,809,341 `HIGHWAY FUND t ;_ } Recurring Office Lease Increase the rental of modular units $ 8,113 Subtotal Recurring $ 8,113 Non-Recurring Arterial Roadways Overlay of Rancho Vistoso Blvd $ 900,000 PAG Reimbursement (900,000) Subtotal Non-Recurring $ - Total Council Adjustments $ 8,113 Contingency Per Manager's Recommended $ 3,158,439 Total Council Adjustments (8,113) Contingency Per Tentative Budget $ 3,150,326 WATER UTILITY'AI.r 1 zy x ._:fes*"R�r. .w ..-,,.._.t,....._,... Non Recurring Wells Increase project costs for Pusch View $ 600,000 Transmission/Distribution Increase project costs for North La Canada 100,000 Transmission/Distribution Increase project costs for Big Wash modifications 200,000 Reservoirs Increase project costs for North La Canada 2.2 MG 150,000 Subtotal Non-Recurring $ 1,050,000 Total Council Adjustments $ 1,050,000 Contingency Per Manager's Recommended $ 3,082,718 Total Council Adjustments (1,050,000) Contingency Per Tentative Budget $ 2,032,718 G:\BUDGET\FY 07-08\Council Line Item Changes FY 07_08 5/9/2007 Department/Division Line Item Increase/(Decrease) HONEY BEE DEVELOPMENT Non.Recurring a, Reduce contingency and offsetting revenue source $ (500,000) Total Council Adjustments $ (500,000) Contingency Per Manager's Recommended $ 500,000 Total Council Adjustments (500,000) Contingency Per Tentative Budget $ - G:\BUDGET\FY 07-08\Council Line Item Changes FY 07_08 5/9/2007 Comparison of Requested Personnel Attachment A FY 2006/07 FY 2007/08 Requested Recommended FTE FTE Town Clerk Office Assistant 0.1 * Department Total 0.1 Town Manager Grants Coordinator 1.0 Management Intern 0.5 Department Total - 1.5 Human Resources HR Technician 1.0 * HR Resources Clerk 1.0 Total 2.0 - Economic Development Office Assistant 0.5 Department Total 0.5 Information Technology GIS Technician 1.0 1.0 Network Administrator 1.0 Department Total 1.0 2.0 Building Safety Commercial Plans Examiner 1.0 Building Inspector I 1.0 Office Specialist 1.0 * • Department Total 3.0 Water Planner-Water Conservation 1.0 Electrical Technician 1.0 1.0 Water Utility Operator II 1.0 * 1.0 Customer Service Rep 0.5 Water Utility Operator I 2.0 Department Total 3.5 4.0 Police Officers 8.0 * Dispatchers 2.0 * Records Specialist 1.0 * Maintenance Technician 1.0 * Office Specialist 1.0 * Assistant Chief of Police 1.0 Lieutenant 2.0 Department Total 13.0 3.0 Legal Legal Secretary 1.0 Department Total 1.0 - Court Court Services Clerk 1.0 0.5 Department Total 1.0 0.5 Comparison of Requested Personnel Attachment A FY 2006/07 FY 2007/08 Requested Recommended FTE FTE Parks & Recreation Sr. Office Assistant 1.0 * Park Maintenance Worker 1.0 * Recreation Leader 0.5 * Park Monitor 0.8 Department Total 3.3 - Planning &Zoning Zoning Inspector 1.0 Department Total 1.0 Finance Financial Analyst 1.0 * Procurement Administrator 1.0 Department Total 1.0 1.0 Public Works Sr. Civil Engineering Tech 1.0 Sr. Civil Engineer 1.0 * Facility Maintenance Crew Leader 1.0 1.0 Landscaper 2.0 Pavement Management Specialist 1.0 Stormwater Manager 1.0 Department Total 5.0 3.0 Transit Dispatcher 1.0 * Transit Coordinator 1.0 Department Total 1.0 1.0 Total Y 17.6: ,.�� '� ` ���z�(:M1�.'� k�Y L P `'.��-w,.`,k a� �'fW ,, <,3�M a .y:� * approved and funded 21.6 Budget by Program Attachment B Town Manager Recommend Adopted FY 2007/08 FY 2006/07 +/- Town Council $ 230,546 $ 214,741 $ 15,805 Town Clerk Administration 377,982 212,192 165,790 Meeting Management 77,093 88,102 (11,009) License Management 57,753 40,671 17,082 $ 512,828 $ 340,965 $ 171,863 Town Manager Administration 618,697 489,655 129,042 Community Relations 294,897 118,704 176,193 Council Support&Constitutent Services 120,341 53,784 66,557 $ 1,033,935 $ 662,143 $ 371,792 Human Resource Administration 188,176 179,939 8,237 Recruitment& Employment 117,129 101,352 15,777 Benefits&Safety 168,383 47,659 120,724 $ 473,688 $ 328,950 $ 144,738 Economic Development $ 207,815 $ 343,180 $ (135,365) Finance Administration 323,904 585,668 (261,764) Accounting Services 335,527 329,757 5,770 Budgeting 161,451 143,388 18,063 Procurement 129,818 - 129,818 $ 950,700 $ 1,058,813 $ (108,113) Information Technology Administration 345,788 214,229 131,559 GIS Services 305,695 120,038 185,657 Technical Services 315,787 191,671 124,116 Web Services 166,575 74,887 91,688 Telecommunications 168,008 95,400 72,608 $ 1,301,853 $ 696,225 $ 605,628 General Administration $ 16,432,595 $ 12,672,382 $ 3,760,213 Municipal Debt Service Fund $ 1,568,239 $ 1,722,461 $ (154,222) Oracle Rd Improvement District $ 464,494 $ 475,242 $ (10,748) Police Administration 1,104,378 973,550 130,828 Professional Development&Training 307,159 484,674 (177,515) Office of Professional Standards 294,645 202,368 92,277 Support Services 569,124 653,125 (84,001) Records 451,523 427,270 24,253 Communications 844,022 788,594 55,428 Information Technology 203,106 212,070 (8,964) Investigations 623,335 556,943 66,392 Community Relations 961,082 927,667 33,415 Grants 474,139 463,952 10,187 Property/I.D. 217,491 215,284 2,207 Fleet Maintenance 239,903 221,388 18,515 Field Services 1,415,093 1,436,189 (21,096) Patrol Bureau"A" 2,817,491 2,974,486 (156,995) Patrol Bureau"B" 2,372,635 1,615,584 757,051 Budget by Program Attachment B Town Manager Recommend Adopted FY 2007/08 FY 2006/07 +/- $ 12,895,126 $ 12,153,144 $ 741,982 Seizures & Forfeitures $ 348,571 $ 371,853 $ (23,282) Magistrate Court Administration 134,532 131,365 3,167 Adjudication 288,766 264,697 24,069 Case Processing&Collections 288,071 236,969 51,102 Security&Transportation 67,493 71,826 (4,333) $ 778,862 $ 704,857 $ 74,005 Legal Civil Division 575,835 597,941 (22,106) Prosecution Division 421,343 388,833 32,510 $ 997,178 $ 986,774 $ 10,404 Community Development $ - $ 419,279 $ (419,279) Planning&Zoning Administration 289,158 126,835 162,323 P&Z Work Plan 56,164 25,619 30,545 Planning 510,373 464,183 46,190 Zoning Enforcement 376,200 306,638 69,562 $ 1,231,895 $ 923,275 $ 308,620 Building Safety Administration 375,988 310,246 65,742 Inspection 521,887 481,094 40,793 Plans Examination 481,319 480,732 587 Intake& Permitting 142,176 135,134 7,042 Implementation Plan 113,930 - 113,930 $ 1,635,300 $ 1,407,206 $ 228,094 Library Administration 579,222 526,591 52,631 Youth Services 203,564 230,915 (27,351) Adult Services 241,643 259,975 (18,332) Technology 348,994 328,020 20,974 $ 1,373,423 $ 1,345,501 $ 27,922 Parks &Recreation Administration 415,528 289,855 125,673 James D. Kreigh Park 470,438 725,384 (254,946) CDO Riverfront Park 288,891 254,384 34,507 General Parks Maintenance 112,902 111,493 1,409 Naranja Town Site Park 41,102 42,015 (913) Lambert Lane Park 41,282 42,015 (733) In House Recreation Programs 248,410 248,175 235 Contracted Programs 148,602 149,388 (786) Bicycle, Pedestrian Trails 53,120 46,252 6,868 Trails Programs& Maintenance 21,512 24,411 (2,899) Aquatics 632,910 519,246 113,664 $ 2,474,697 $ 2,452,618 $ 22,079 Steam Pump Ranch Acquisition Fund $ 628,113 $ 5,000,000 $ (4,371,887) Honeybee Village Development Fund $ 706,500 _ $ 806,500 $ (100,000) Budget by Program Attachment B Town Manager Recommend Adopted "` �f} mow s3. 5 FY 2007/08. FY 2006/07 '''/- Highway Fund Administration 4,498,902 3,394,200 1,104,702 Construction Design&Management 2,707,539 3,558,706 (851,167) Highway Permitting 105,828 99,461 6,367 Pavement Management 208,989 125,309 83,680 Street Maintenance 1,474,768 1,345,193 129,575 Traffic Engineering 347,097 433,075 (85,978) $ 9,343,123 $ 8,955,944 $ 387,179 Development Review $ 532,816 $ 502,261 $ 30,555 Public Transportation Administration 107,516 91,235 16,281 Fleet Maintenance 79,558 63,447 16,111 Dispatch/Scheduling Operations 112,077 83,451 28,626 Driver Operations 491,406 459,080 32,326 $ 790,557 $ 697,213 $ 93,344 Stormwater Utility $ 640,061 $ 1,135,575 $ (495,514) Facilities Maintenance Library Building - 76,582 (76,582) Administration Building 90,303 60,509 29,794 Water Utility Building 13,900 6,276 7,624 Magistrate Court Building 21,818 12,060 9,758 Development Services Building 47,101 32,508 14,593 Police& Substations 47,255 30,525 16,730 Calle Concordia Facilities 43,897 34,506 9,391 Steam Pump Ranch 15,000 - 15,000 $ 279,274 $ 252,966 $ 26,308 Development Impact Fees Administration 2,021,347 1,676,110 345,237 Design 565,000 909,031 (344,031) Right of Way - 100,000 (100,000) Construction 14,000,000 9,412,819 4,587,181 $ 16,586,347 $ 12,097,960 $ 4,488,387 RTA Fund $ - $ 600,000 $ (600,000) Municipal Operations Center $ 6,612,690 _ $ 1,320,292 $ 5,292,398 Water Utility Enterprise Fund Administration 8,670,179 11,422,181 (2,752,002) Billing 901,728 634,690 267,038 Conservation 162,424 141,623 20,801 Water Management 1,743,905 977,830 766,075 Engineering & Planning 352,800 314,724 38,076 CIP 4,312,616 4,410,811 (98,195) Construction Inspection 148,693 191,788 (43,095) GIS 85,041 82,319 2,722 Production 2,588,464 2,805,413 (216,949) Distribution 1,199,988 956,990 242,998 $ 20,165,838 $ 21,938,369 $ (1,772,531) Alternative Water Resource Fund $ 8,758,040 $ 7,208,468 $ 1,549,572 Connection Fees Fund $ 13,630,142 $ 9,165,717 $ 4,464,425 Budget by Program Attachment B Town Manager Recommend Adopted FY 2007/08 FY 2006/07 +/- Water Acquisition Fund $ - $ 3,500,000 $ (3,500,000) Capital Asset Replacement Fund $ 500,000 $ - $ 500,000 Bed Tax Fund $ 1,878,583 $ 1,710,039 $ 168,544 Less: Financing Uses (8,103,196) (8,301,260) 198,064 I $ , a , , v "'1x:'/17,860,633 1 $ ''7s �z .Y- : ` ' 05 869 6S3 '1,990,980 I Attachment C O 0 O w c 0 as '�^ vI . 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