Page 106 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Personnel Summary Processes

Vacancy Adjustments
Not all positions will be filled 52 weeks per year, and so these expected vacancies are addressed in
the salary budgeting process.
Start Dates - Expected start dates for open positions may vary. Keeping track of those
assumptions is important because a large dollar variance may result when an actual start
date differs from the budgeted date.
Attrition ( Planned Retirements) - Budget consideration should be given for those positions
where employees have indicated specific retirement dates. Payouts need to be budgeted.
Impact of Inflation - Inflation can have a significant impact on payroll forecasting. Cost-of-
living adjustments often are used when forecasting personnel costs. The Consumer Price
Index ( CPI), a broad measure of consumer inflation, is the cost-of-living index used most
often for determining salary increases. The U.S. Bureau of Labor Statistics’ Employment Cost
Index might be a better index for this purpose, as it measures the change in the cost of
labor, free from the influence of employment shifts among occupations and industries.
Seasonal and Temporary Positions - Some divisions or jurisdictions use part-time or seasonal
employees. Park districts, for example, often adjust staffing levels by season.
Other Considerations - Some governments make more use of overtime as an option instead
of hiring fulltime workers. The use of retired employees for contractual services is another
alternative to adding headcount.

Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act established minimum wage, overtime, recordkeeping, and child labor
standards and applies to all full-time and part-time employees. As amended in 1985, the FLSA
provides the option for compensatory time in lieu of overtime compensation for non-exempt
employees. Executive, administrative, and professional employees meeting Department of Labor
exemption guidelines are exempt from FLSA overtime requirements. The Town will comply with the
FLSA for all employees.

Personnel Tracking System
Budget payroll projections are based on the estimate of budgeted positions for the year, in order to
provide the correct number of budgeted positions. The system tracks all employees, full-time, part-
time, temporary and permanent.

Non-Exempt Positions
All non-exempt ( hourly) positions are eligible for overtime compensation. Bi-weekly wages are
based on a 40-hour work week ( 2,080 hours per year), equaling one full-time equivalent ( FTE)
position. There are 26 pay periods per year. This work schedule applies to all hourly regular, year-
round employees, except for Fire/ EMS employees.

Non-Exempt Positions ( Fire/ EMS Department)
Non-exempt ( hourly) positions in the Fire/ EMS Department are eligible for overtime pay. Pay
periods are 15 days in length, and there are 24 pay periods per year. Full-time employees are
scheduled to work five (5) 24-hour shifts per pay period, totaling 120 hours. Full-time employees
are scheduled to work an average of 2,912 hours annually over 24 pay periods.

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