Page 23 - FY 19 Budget Forecast 91218.xlsx

sustainable 2 percent annual step plan that was implemented in FY 2017‐18. For general/civilian
employees, the budget proposes a 3.5 percent raise split between a 1.5 percent increase to the pay plan
aimed at remaining competitive and a 2 percent merit increase for eligible employees.

The adopted budget increases city staff by 2.25 FTEs (full‐time equivalents) related to an Accreditation
Manager, a part‐time School Resource Officer (SRO) and a part‐time Environmental Services Technician.
The Accreditation Manager will manage the police and fire accreditation programs and handle the related
reporting requirements, and will be funded by the Keller Crime Control and Prevention District Fund. The
part‐time SRO will cover the Keller ISD middle schools with the city limits and will be completely funded
by the Keller Independent School District. The part‐time Environmental Services Technician will primarily
focus on regulatory reporting requirements and is funded by the Water and Wastewater Fund. It should
be noted that the number of employees working for the city currently stands at 346.77 FTEs, far below
the 369.07 FTEs on staff back in 2009 when our population was smaller. I believe this shows the
commitment by staff to operate as efficiently as possible.

Keller will continue to offer a high deductible medical insurance plan with the option of a buy‐up plan,
and we will continue into our second year of a two‐year contract with zero increase to medical insurance
premiums. In FY 2017‐18, General Fund salary savings will be transferred to a self‐insurance fund as part
of a goal to become self‐insured in the near future.

As part of our benefits package, the City of Keller participates in the Texas Municipal Retirement System,
which continues to be solidly funded at 82.6 percent. TMRS as a whole (as of Dec. 31, 2016) was 86.3
percent funded. The city’s contribution rate will be reduced effective Jan. 1, 2019, to 15.59 percent from
15.65 percent for a fiscal year blended rate of 15.61 percent.

Due to a strong work safety approach and resulting reduction in severity of claims over the past three
years, Keller also continues to see success in our efforts to improve our Workers’ Compensation
experience modifier. This has resulted in a decrease of $5,948 in the adopted budget even with the
adopted compensation increases.

In Summary

I would like to give a special thanks to our staff, particularly the Finance Department, for the hard work
and dedication they have shown in the development of the FY 2018‐19 Adopted Budget. I would also like
to thank the City Council for their continued vision and leadership. Without the dedication of everyone
involved, this budget would not be possible. I am confident that the adopted budget is structurally
balanced and supports sound fiscal and operational policies. The budget is not merely made up of
numbers, but is an expression of our council’s vision, and our citizens’ values and aspirations.

Sincerely,

Mark Hafner
City Manager

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